Fastest way to transfer money between banks

A few years back, we used to visit banks for electronic fund transfers, but now there is no need to visit banks. The use of technology and the Internet allows you to transfer money between banks in the fastest way.

There are many options but, which option is fastest as all banks provide internet banking, mobile banking, and UPI facilities?

You know that to get these banking facilities you have to activate or register for net banking, mobile banking, and UPI.

There are several types of money transfer options available through Internet Banking, like NEFT, RTGS, IMPS, etc. By using these options, you can easily transfer money to another bank.

However, the Unified Payment Interface (UPI) is the fastest way to transfer money between banks. So, if you want to know the fastest money transfer option and others, then this article will cover your query.

Types of Money Transfers in Bank

These are by far the most used money transfer options in India. You can transfer funds online as well as offline in 5 ways.

1. NEFT (National Electronic Fund Transfer)
2. RTGS ( Real-Time Gross Settlement)
3. IMPS ( Immediate Payment Service)
4. UPI ( Unified Payments Interface)
5. Cheque ( by hand or courier)

Banks provide full rights to customers through net banking, you can use NEFT, RTGS, and IMPS for fund transfers to another bank. Following are the steps to transfer funds through the NEFT, RTGS, and IMPS.

NEFT Transfer:

NEFT (National Electronic Fund Transfer) is the most used form for transferring money from one bank to another. To complete NEFT transactions, enter the account number, IFSC Code, and amount of the destination account.

Note: You can also add beneficiaries for instant transfer. There is no limit on the amount that can be transferred in NEFT, but you can set a limit.

Steps to Transfer Money through NEFT

Log in with your Internet banking credentials:

1. Select the Fund Transfer Tab, and click on the ‘Transfer to Other Bank‘ (NEFT).
2. Enter the recipient’s account details and amount.
3. Accept the Terms & Conditions and click on Submit.
4. Preview the details and Confirm to complete the process.

RTGS Transfer:

RTGS is a real-time transfer which is almost similar to NEFT. It takes 30 minutes or less to credit the destination account.

This is the best option if you want to transfer to more than one account. There is no upper limit for RTGS, but the minimum payment and deposit methods are different here.

Steps to Transfer Money through RTGS

1. Select the Fund Transfer tab and click on the ‘Transfer to Other Bank’ (RTGS).
2. Enter the recipient’s account number and other relevant details.
3. Select Terms and Conditions.
4. Review the details, and click on confirm to complete the process.

IMPS Transfer:

Immediate Payment Service (IMPS) is an instant fund transfer service and you can use it 24/7 basis. The IMPS transaction limit has been set very low to avoid fraud complaints.

The maximum transfer limit is Rs 25,000/- per day. For IMPS transfer, you need to know the MMID or IMPS ID of the destination account holder and their mobile number.

Steps to Transfer Money Using IMPS

1. Log in with your Customer ID and Password in Net Banking or Mobile Banking.
2. Select the Funds Transfer tab (Other Bank Account) option.
3. Select the debited account, beneficiary account, or mobile number, and name and enter the amount.
4. Select the Terms & Conditions and click on Continue.
5. Review the details and click on Confirm.

UPI Transfer:

UPI (Unified Payments Interface) is a digital payment system where you can send and receive money through a UPI ID or a registered mobile number.

This is the most commonly used option in India and provides the fastest transfer facility. Besides UPI ID and mobile number, many options are available for money transfers like QR codes, Bank accounts, etc.

You have to choose one of them, but for larger amounts (up to ₹100,000) mobile number is the preferred option. And QR codes are for everyday use, that’s all.

Which is the fastest way to transfer money between banks?

Unified Payments Interface (UPI) is the fastest and easiest way to transfer funds from one bank to another. Here, a registered mobile number is the best and fastest option for fund transfer.

QR Scan is also the best option for a low amount, but it requires a QR code. The list of UPI apps that are best for fund transfer:

• PhonePe
• Google Pay
• Paytm
• SBI Pay
• Freecharge
• Mobikwik
• Samsung Pay
• Uber India
• Axis Pay
• YONO SBI
• BHIM SBI Pay

Most UPI apps proved to be a boon for customers, easy to use, 100% secure, and supports instant money transfer.

No need to enter a user ID password here; enter a UPI PIN and transfer. Apart from this, you can pay utility bills, mobile recharge, credit card bills, and more.

Cheque Transfer:

It is used by most companies, and it is also the process of transferring or receiving money from one account to another. This is a very old money transfer process which is still widely used today.

All you need is a checkbook, the recipient’s name or account number and the amount to be entered. Here, your signature is essential on the checkbook.

There is no limit if you want to transfer money from your account to another bank account, but there are some restrictions if you wish to withdraw a certain amount.

A certain amount differs from bank to bank and may change over time. The cheque can be transferred through the courier service or by hand.

Note: IMPS supports a 24/7 format for money transfers, whereas RTGS and NEFT happen only during working hours on weekdays.

Note: But, now times have changed, UPI is the fastest and preferred option for individuals as well as officials in India.

FAQ

Conclusion

There are different types of money transfer options available in India mentioned above, but the fastest and preferred option for up to ₹ 100,000 is UPI. But for larger amounts, you will have to use another option.