Fund Transfers mean sending and receive money or any fund of amount from one person to another person. Here we have several Modes of payment. They are explained below.
What is the IFSC code?
The Indian Financial System Code is also known as IFSC is a unique 11 character code for identifying the bank and branch in which an account is held. The IFSC code is used by the NEFT, RTGS, and IMPS finance transfer systems.
What is IMPS?
IMPS stands for Immediate Payment Service in Indian banking system terminologies. It is a money transfer mechanism made available by the apex bank of the country, the Reserve Bank of India, and the National Payments Corporation of India (NPCI). Initiated in 2010 by the NPCI with the help of a pilot project with 4 major banks, IMPS has now grown to 150+ banks.
The major feature of IMPS is that it is available at all times for usage. It transfers funds instantly and is a great banking platform in case of emergencies. The transaction charges of this platform are also very nominal and the transfer limit is also considerable, approximately Rupees 2 lakhs per day. Moreover, IMPS is available on mobile too which makes it super-convenient.
What is NEFT?
National Electronic Fund Transfer (NEFT) and RTGS (Real-time gross settlement) transfer mechanisms are only available during their business hours. Moreover, NEFT and RTGS are not available on bank off-days and holidays. However, IMPS scores a point in this regard as it is available 24 x 7.
National Payments Corporation of India (NPCI) is responsible for managing the IMPS fund transfer mechanism. This mechanism is regulated by the Reserve Bank of India. One can define IMPS as an immediate, inter-bank real-time fund transfer mechanism enabled through electronic means.
UPI (Unified Payment Interface)
Discover a quick and easy way to send and receive money using a Virtual Payment Address (VPA) without entering additional bank information.
What is RTGS?
The word ‘RTGS’ stands for Real-Time Gross Settlement, which can be defined as the continuous settlement of funds individually on an order by order basis without netting. ‘Real Time’ means the processing of instructions at the time they are received rather than at some later time.’Gross Settlement’ means the settlement of funds transfer instructions occurs individually. Considering that the fund settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.