National Electronic Funds Transfer (NEFT)
National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of India (RBI).
Started in November 2005, the setup was established and maintained by the Institute for Development and Research in Banking Technology (IDRBT).
NEFT enables bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis. This is done through electronic messaging.
Unlike Real-time Gross Settlement (RTGS), fund transfer through the NEFT system does not happen on a a real-time basis. NEFT settles fund transfers in hourly batches with 23 settlements taking place between 00:30 hrs. till 00:00.
From 16th December, 2019, there will be 48 half hour batches between 0.30 hrs to 00:00 hrs, irrespective of holiday or otherwise, as on 30th November, 2019, NEFT facility at 1,48,477 branches/offices was available. Online through the website of 216 banks and NEFT-enabled banks across the country.
NEFT has gained popularity due to the ease and efficiency with which transactions can be concluded.
There is no limit on the number of money that can be transferred using NEFT – either minimum or maximum.
Indo-Nepal Remittance Facility Scheme
The India-Nepal Remittance Facility is a cross-border remittance scheme for transferring money from India to Nepal enabled under the NEFT scheme.
The scheme was launched to provide a safe and cost-effective route for migrant Nepalese workers in India to send money back to their families in Nepal.
A remitter can withdraw Rs. 50,000 (maximum permissible amount). The beneficiary will receive the money in Nepalese Rupee.
Immediate Payment Service (IMPS)
Immediate Payment Service (IMPS) is an initiative of the National Payments Corporation of India (NPCI). It is a service through which money can be transferred instantly from one account to another, within the same bank or to accounts of other banks.
On registration, both the individuals are issued an MMD (Mobile Money Identifier) code from their respective banks. It is a 7 digit numeric code.
To initiate the transaction, the remitter needs to enter the receiver’s registered mobile number, receiver’s MMID and the amount to be transferrneeds to enter the receiver’s registered mobile numberction, the money gets ,credited to the recipient’s account immediately.
This facility is available 24*7 and can be used through mobile banking applications. Some banks have also started providing this service through the internet banking profiles of their customers.
Though most of the banks provide this facility free of cost to encourage a paperless payment system, ICICI Bank, and Axis Bank charge for the same as per their respective NEFT charges.
Nowadays, money through this service can also be transferred directly using the recipient’s bank account number and IFS code. In such a situation, neither does the beneficiary needs to register for the the mobile banking service of his bank nor does he need the an MMID code.
*IMPS facility is different from NEFT and RTGS as there is no time limit for doing transactions. This facility can be availed 24*7 and on all public and bank holidays including RBI holidays.
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