-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 ).