May 25, 2022

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What are the different types of money transfers?

3 min read
money transfers

There are three main types of money transfers: NEFT, RTGS, and IMPS. Here is a look at each one in more detail.

What is NEFT?

NEFT (National Electronic Funds Transfer) is a system that allows you to transfer money from one bank account to another. The money is transferred electronically, so you don’t need to worry about carrying any cash with you.

What are the benefits of NEFT?

The main benefit of NEFT is that it’s a quick and easy way to transfer money. You can also use it to transfer large sums of money, which can be helpful if you need to pay a hefty bill.

What are the restrictions on NEFT?

The main restriction on NEFT is that the money must be transferred between two bank accounts in India. You can’t use it to transfer money overseas.

Another restriction is NEFTs can take a while to transfer the money. It usually takes between one and two hours. This may not be an issue if you’re transferring a small amount of money, but it could be a problem if you’re transferring a substantial amount.

What is RTGS?

RTGS (Real Time Gross Settlement) is a system that allows you to transfer money from your bank account into another person’s bank account.

What are the benefits of RTGS?

The main benefit of RTGS is that it lets you make transfers quickly and securely. It’s also a valuable way to transfer money overseas. Also, unlike NEFT, you can use it for large sums of money.

What are the restrictions on RTGS?

The main restriction with RTGS is that the person receiving the funds must have an account at a different bank than yours. You may also need to provide more information about your transfer, such as an “RTGS Transfer Reference Number.’ In addition, with RTGS, you need to have a bank account with a participating bank to use it.

What is IMPS?

IMPS (Interbank Mobile Payment Service) is a system that allows you to transfer money from your bank account to another person’s bank account using your mobile phone. This makes it a quick and convenient way to wire money, especially if the recipient doesn’t have a bank account.

What are the benefits of IMPS?

IMPS is a very convenient way to send money, as you can do it from anywhere and at any time. It’s also a quick process – in some cases, there may not even be a charge for using IMPS. Also, unlike NEFT or RTGS, the recipient doesn’t need to have a bank account to receive the funds.

What are the restrictions on IMPS?

The main restriction with IMPS is that you can only use it for transfers between bank accounts in India. You also need to have a bank account with an authorized mobile money service provider to use it.

Additionally, the wire transfer must be within a certain limit. This is usually based on the participating bank’s rules and regulations.

Whatever choice you make, it is crucial to weigh the pros and cons of each to see which one best suits your needs. When you transfer money through Western Union, you are provided with a unique Money Transfer Control Number (MTCN) that helps you track your transfer easily. 

If you’re ever unsure about anything, don’t hesitate to ask your bank for help. They should be more than happy to guide you through the process.