E-Payments is safe. A New Way Of Transfer Money With Secured Way.

                                                                                         -By Dharmesh Mehta




     Nowadays life becomes very hectic and busy where people are favoring more comforts, but it is almost impossible without E (Electronic) generations where you can do anything with the help of E-commerce. Many of us are leaving in myth that money transferring from online, proceeding transaction through net banking else through debit card is not safe etc.

     But actually it is very safe and very easy which will save our time and relieve our self in this hectic schedule. Let us understand one of the important way among others which will increase our comfort zone more and saving a lot of time.

Online transferring money means E-Payments

     We can transfer the money from one account to another very easily in few clicks and the fraction of minutes in a secured way. We can transfer the money through NEFT as well as RTGS let us understand the brief about process and charges of theme.

     National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) allow individuals, companies and firms to transfer money from one bank to another. You can check RBI website for a list of NEFT and RTGS-enabled branches of your bank. 

 

    These facilities can only be used for transferring money within the country. To opt for these, you need to fill a form providing your or the beneficiary’s details — name, bank branch where the account is held, the Indian Financial System Code, a unique code for identifying the branch, and the account number and type. You have to submit a cheque while opting for this facility. You can also transfer funds through net banking. These are third-party transfers and the option is available under the same header on your net banking home page.

How much can be transferred?

     There is no ceiling on the minimum or maximum amount that can be transferred through NEFT. You can even transfer Re 1. However, a minimum of 2 Lakh Indian Rupees must be transferred through the RTGS service. There is no cap on the maximum amount. Though, banks may restrict the amount you can transfer in one day. For example, HDFC Bank allows a maximum of Rs 10 lakh to be transferred in a day.

What are the charges applicable?

     According to RBI, banks cannot levy any charge for inward remittances or on receipt of funds. However, it has capped the charges on outward transfers through NEFT and RTGS. For transfers through the former, you need to pay around Rs 5-25, depending on the amount.

RTGS:
Inward Transactions: Free, no charge to be levied;
Outward Transactions: Rs 2 lakh to Rs 5 lakh - Not exceeding Rs 30 per transaction; Above Rs 5 lakh - not exceeding Rs 55 transactions

NEFT:
Inward transactions at destination bank branches (for credit to beneficiary accounts) - Free, no charges to be levied from beneficiaries

Outward transactions at originating bank branches – charges applicable for the remitter
For transactions up to Rs  10,000 : not exceeding Rs 2.50 (+ Service Tax)
For transactions above Rs 10,000 up to Rs  1 lakh: not exceeding Rs 5 (+ Service Tax)
For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Service Tax)
For transactions above Rs 2 lakhs: not exceeding Rs 25 (+ Service Tax)

 How are the two different?

     NEFT operates on a deferred net settlement (DNS) basis and settles transactions in batches. The settlement takes place with all transactions received till a particular cut-off time. It operates in hourly batches — there are 11 settlements from 9 am to 7 pm on weekdays and five between 9 am and 1 pm on Saturdays.

    Any transaction initiated after the designated time would have to wait till the next settlement time. In RTGS, transactions are processed continuously, all through the business hours. RBI’s settlement time is 9 am to 4:30 pm on weekdays and 9 am to 1:30 pm on Saturdays. Banks can function within this time frame or change it. Here, transfers made are quick and can be helpful in emergencies.


     If the transaction fails, the beneficiary’s bank must return the amount to your bank within two hours and the transaction must be reversed. Also, the bank must transfer the amount to your account within 30 minutes of receiving the same. The process can work quickly for RTGS . But, in case of NEFT the entire process could take an additional three-four hours.

What if the amount does not get credited?

If the transaction fails, the beneficiary’s bank must return the amount to your bank within two hours and the transaction must be reversed. Also, the bank must transfer the amount to your account within 30 minutes of receiving the same. The process can work quickly for RTGS . But, in case of NEFT the entire process could take an additional three-four hours.


This article definitely clears your many of the doubts and myths regarding online transactions.we will provide more clarification regarding epayments as well as Pros and Cons of the same in upcoming post.If you have any query then you can refer RBI official website.  

Article written By Dharmesh Mehta (B.E Computer Eng. , MBA Banking & Finance ).

Previous Post Next Post