Why Does India Have
4 Options to Transfer Funds?
Ways to Transfer Funds
RTGS - Real-Time Gross Settlement
NEFT - National Electronic Fund Transfer
IMPS - Immediate Payment Service
UPI - Unified Payments Interface
Before 2004, individual bank fund transfers risked systemic failure. RBI introduced RTGS,
processing each transaction in real-time
to mitigate this risk.
minimum transaction amount is 2 lakhs
Primarily used by institutions, large merchants & businesses.
Online transactions are free for many banks.
NEFT, besides funds transfer,
served diverse purposes
like credit card dues, loan EMIs, inward forex remittances, etc.
Features of NEFT
In 2017, the total value of
transactions was ₹120 lakh crores.
Transaction settling time is 30 minutes.
You can send amounts as low as ₹1.
Before 2010, RTGS and NEFT operated during specific hrs. IMPS, from 2010,
allowed 24x7 fund transfers
up to ₹2 lakhs (now ₹5 lakhs) with deferred net settlement.
Features of IMPS
IMPS includes non-bank entity transfers like PPI users.
Originator bears IMPS transaction cost; NPCI charges banks.
IMPS transactions can be done from mobile & other devices.
Introduced n 2016, UPI aimed
reduce cash usage, track all transactions
, curb tax evasion, & boost government revenue by enabling small online peer-to-peer payments.
Features of UPI
UPI allows you to transfer funds
through your mobile 24/7 instantly.
You can send money from your bank to anyone’s phone number, UPI, or QR.
Above table shows the comparison of all 4 funds transfer options in India.
Earn 9 - 11%
More Wint Stories
4 New UPI Features to Target 100 Bn. Transactions Monthly
How is India Lending in 2023?