Round-the-clock money transfers now possible
Now, they all are available round-the-clock with RTGS getting offered 24/7 in the second week of December.
Hyderabad: Digital transactions are rising on the back of innovations in the fintec side. Before the new apps came handy, banks have been facilitating electronic transfers through RTGS, NEFT and IMPS. Now, they all are available round-the-clock with RTGS getting offered 24/7 in the second week of December. Here are the key features of them-
RTGS
Real Time Gross Settlement (RTGS), which began in March 2004, facilitates on-line real time settlement of payments. India is among the the few countries in the world to operate its RTGS system round the clock. This brings flexibility to business payments. RTGS is meant for high-value transactions- the minimum amount to be remitted is Rs 2 lakh. There is no upper limit. Charges have been removed since July last year to promote digital transactions in the country. Now, there are about 237 participants. As per RBI data, about 1.3 crore transactions happen on the platform on a monthly basis and the 94.8 lakh crore. RTGS uses positive confirmation for credit to beneficiary accounts.
National Electronic Funds Transfer (NEFT)
NEFT is a centralised payment system owned and operated by the Reserve Bank of India (RBI). It is also available 24/7 and offers near-real-time funds transfer to the beneficiary account and settlement in a secure manner. Positive confirmation to the remitter by SMS / e-mail on credit to beneficiary account is given. There is a penal interest provision for delay in credit or return of transactions. NEFT can also be used payment of credit card dues, payment of loan EMI and inward foreign exchange remittances. Around 24 crore transactions happen on a monthly basis and the turnover is about Rs 2 lakh crore. This is growing at about 40 per cent.
How to use
Internet/mobile banking facility offered by bank can be used for initiating online funds transfer request. Details of beneficiary –name, bank, branch IFSC, account type and account number have to be provided. Remitters can also visit bank branch for initiating NEFT funds transfer through off-line mode. There is no limit imposed by the RBI for funds transfer through NEFT system. However, banks may place amount limits based on their own risk perception.
Wrong account number
The amount is credited solely based on account number provided. It is the responsibility of remitting customer to write correct account number.
IMPS
Immediate Payment Service (IMPS), launched in November 2010, offers an instant, 24X7, electronic fund transfer service and can be accessed on mobile, internet, ATM, SMS. Currently, 590 members, including banks and prepaid instruments, are live. This facility is provided by NPCI. This can be used for sending and receiving money. After initiating the payment request, payment cannot be stopped or cancelled. Accordingly, about 34 crore transactions happed in November and the value of transactions is Rs 2.76 lakh crore.
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