The advent of online shopping and the effects of demonetization has increased the importance of digital payments in India. From wire transfer to online instant fund transfer, payment and settlement systems in India has adopted a lot. Today online fund transfers can be done through many channels that are more secure than we could think of. Knowing some of them will save your time and reduce your work burden. Most digital wallets support the below online payment methods and provide an easy interface to access.
We can classify online fund transfer facilities in 3 ways.
- Fund transfer using Internet Banking facility.
- Fund transfer using Mobile Banking facility.
- Money transfer through UPI based Mobile Applications.
Things you need before using online money transfer
You definitely need a smartphone or a computer with internet access. Anyone or two of the following is needed to do online fund transfers depending upon the payment platform you choose to use.
- You must register for Mobile banking facility or E-Banking facility.
- You should have an active debit card.
- You must have the details of the beneficiary.
- Account Number,
- Bank’s IFSC code:
- Your mobile number should be registered with your bank account.
Best ways to Transfer money online in India
#1. Fund transfer using Internet Banking facility
This facility is provided by all RTGS/NEFT enabled banks. And you can send funds to all RTGS/NEFT enabled banks. You should register for E-banking facility at your bank to get the username & password for login.
With Internet Banking facility you can send funds
- Between your own accounts that are linked and maintained with the same bank.
- To the account holders of the same Bank. (just account number is enough)
- To other bank accounts using the following three modes RTGS, NEFT, and IMPS.
(A). NEFT (National Electronic Fund Transfer)
The transactions in NEFT channel are settled on a batch basis. NEFT settles fund transfers in 23 half-hourly settlements batches between 8:00 AM to 7:30 PM
Due to the batch settlement, the fund transfers are settled slower than RTGS and IMPS. It may take 2 hours to receive the fund.
Unlike NEFT, RTGS transactions are settled in real time. So funds transferred through RTGS are faster than NEFT. You will receive the funds within one hour after successful initiation of the transaction.
RTGS settlement process is only applicable to transactions of Rs.2.00 Lakhs and above.
Immediate Payment Service (IMPS) is an electronic mode of sending funds instantly to other bank accounts. IMPS allows us to send funds in five ways
- Using the Account Number.
- Using Mobile Number.
- Using Aadhar Number.
- Using MMID.
- Using UPI ID.
It is available for 24 x 7 means you can transfer money at any time on any day. The only restriction is you can transfer funds only up to Rs.2.00 Lakhs per day.
- Through NEFT and RTGS, the maximum limit to transfer funds through online is restricted to Rs.25.00 Lakhs per day. Many Banks restricts maximum limit to Rs.10.00 Lakhs per day for Savings Accounts.
- The NEFT/RTGS transactions can only be initiated during the working hours of the Bank. If Bank is on holiday then you can send funds using RTGS/NEFT.
- Not all banks have options to use the five methods of IMPS through their Net Banking facility. Using IMPS you can send funds up to Rs.2.00 Lakh per day.
- NEFT and RTGS settlements are slower than IMPS.
Note – “Only Internet Banking has the highest transaction limit of Rs.25.00 Lakhs. So if you are a businessman doing trading activities then you must need the Internet Banking facility.”
How to do the money transfer through E-Banking facility to other banks?
- Log in to your bank’s website using the username and password.
- First, you must register the details of the beneficiary. After the registration, you have to wait for 6 to 24 hours to do the transaction (depends upon your bank). This waiting period helps to avoid instantly registering and sending funds by a fraudster or hacker.
- Select the channel you want to choose RTGS/NEFT/IMPS.
- Select the beneficiary and enter the amount.
- Enter the correct transaction password and OTP to successfully process the transaction.
- Note down the reference number or UTR number for future communication with your beneficiary or bank.
Some Banks even have a separate mobile app for transferring money online. You can access the mobile apps through the Internet Banking facility.
You have to log in to the mobile app with your internet banking username and password and follow the same steps.
#2. Fund transfer using Mobile Banking facility
Mobile banking is a facility provided by individual banks for fund transfer using a mobile phone.
In Mobile Banking fund transfer can be initiated in two ways.
- Using USSD Banking (a mobile phone without Internet access is sufficient)
- Using Bank’s mobile banking application using NEFT/IMPS (requires a smartphone with internet access).
The mobile banking applications are created by the Bank itself and no other third party payment service provider can link with it.
By using the mobile banking application of your Bank you can send funds
- Between your own accounts that are linked by the bank.
- To the account holders of the same Bank.
- To other bank accounts using NEFT and IMPS.
- Recharge and pay bills.
- In USSD banking the maximum fund transfer limit is Rs.5000/- per day and Rs.50000/- per year.
- IMPS limitation of Rs.2.00 Lakhs per day is applicable for fund transfers using mobile banking application.
How to use the mobile to transfer fund without internet access?
USSD Banking (*99#) – Registration Process:
“In case of an emergency, if you don’t have internet and your bank is a USSD enabled Bank. Then you can use the *99# facility.”
- Dial *99# from your registered mobile number.
- Choose your preferred Language
- Enter your bank name and select your bank.
- Select your bank account and enter debit card details
- Set your UPI Pin. If you already have a UPI ID, then you can enter that UPI PIN.
- As a token of confirmation, you will get the balance of the selected account number.
- Now to transfer fund dial *99# again.
- Type the option number for “Send money”.
- Type the option number for “IFSC code and Account No”.
- Type the IFSC code.
- Type the Account Number.
- Type the amount.
- Type remarks if you want or just type 1 to skip.
- Type your UPI pin.
- You will get a transaction id and status of the transaction.
#3. Money transfer through UPI based Mobile applications:
a). By using a Debit card
Your Bank is not a UPI enabled Bank or you face error in creating UPI id. And also you have not registered for mobile banking or internet banking. Then you have to use your Debit card to transfer your funds.
The easiest way to transfer from your debit card is using the Paytm app. But it is the costliest way. So use this option only when you don’t have other options.
- To transfer funds to bank accounts the maximum limit is Rs.5000/- per transaction and Rs.25,000/- per month.
- 4% Transfer charge is collected by Paytm.
How to transfer fund using a Debit card?
- Download and install the Paytm app.
- Create an account using your Mobile Number.
- First, you have to add money to your Paytm account.
- Click on Add money.
- Enter the amount.
- Select debit card option and enter your debit card details. Then click pay now.
- Now go to the main menu and Click on Passbook.
- Click Send money to Bank. The click transfer.
- Type the details account name, IFSC code, amount and remarks.
- Click Proceed.
b). Unified Payment Interface (UPI)
UPI uses IMPS channel for fund transfer. So it is instant and available for 24/7.
The UPI enabled Banks allows us to send funds in UPI based mobile apps. The account holders of these banks can receive funds without disclosing their bank details. Instead of bank details, UPI id is used.
To receive the funds your bank need not be a UPI enabled bank. The only thing is you need to share your bank account number and IFSC code of the bank.
UPI apps help us to
- Bill payments :
- Bank Account money Transfer
- Fund transfer using mobile number, UPI ID and QR code.
The additional benefit of using UPI apps instead of Bank’s Mobile Banking application is attractive cash back offers and reward point system. Check out the list of best UPI Payment Apps to start using today.
Limitation: The Maximum transaction limit is Rs.1 Lakh per day
The unique feature of Google Pay (Tez) is transferring funds between phones (installed with Google Pay) without using any data of the beneficiary like bank account details, UPI Id, mobile number. This feature is called as Tez mode.
Using Audio QR code the phones of both the sender and receiver talks to each other. And the transfer of fund is done with a few clicks. The only requirement is both phones must be installed with Google Pay (Tez) app. You can earn upto Rs.1,00,000 through scratch cards (my friend actually won that amount recently). Get Rs.51 immediately on your 1st transfer if you have not used Google Pay yet. Download link below.
Compatible Devices: Android and iOS smartphones.
How to transfer money using Google Pay (Tez)?
Google Pay (Tez) Set up Process:
- Download the app at Play Store or iOS App Store. Click here to receive Rs.51 on your first transfer.
- Select your preferred language.
- Enter the mobile number which is registered with your bank.
- Choose your Google account. If you don’t have an account create new.
- The app automatically verifies your mobile number using OTP.
- Select the way you want to secure the login to the app. You have two options
- You can use your screen lock or
- You have to set a 4 digit PIN to login to the app.
- Now click on “Add bank account”.
- Select your bank and the savings account.
- Enter the valid debit card details.
- Set the UPI pin for transactions.
- Login to your Google Pay (Tez) account.
- Click the new button.
- Select Bank Transfer.
- Enter the account number, IFSC code and name of the account holder.
- Enter the amount and Enter the payment remarks in “what’s this for?”.
- Click proceed to pay.
There are many UPI app prepared by Banks and by third-party payment service providers. For detailed comparison check out our article “List of Best UPI apps to transfer money in India”.
Charges may be applicable to online fund transfers. Ask your Bank for details about the charges for using different modes of online fund transfers.
When doing an online transaction, please take the following precautions.
- Don’t share the confidential details such as OTP, UPI Pin, login and transaction password.
- Ensure the website/mobile app is authentic.
- Please cross check the beneficiary details before initiating instant transactions. Even small mistakes like jumbling of numbers can lead to transfer to a wrong account.
- For important transactions note down the reference number, it will help you in case of any dispute.