How to Transfer Money Online?

Technology has made it easy to handle financial transactions online, including money transfers. With online money transfer, you can enjoy round-the-clock availability, secure transactions, lower fees, the convenience of performing transactions from anywhere, and less paperwork.

It’s a simple and hassle-free way to manage your finances efficiently.

4 Top Ways to Transfer Money Online

Unified Payment Interface (UPI)

Unified Payment Interface (UPI) is a popular mobile payment method that allows you to transfer funds from one bank account to the other, instantly and free of charge. Transferring money through UPI requires each user to have an ID, termed the UPI ID. The UPI ID is a unique identification for a bank account used to send and receive funds from one bank to another. The UPI PIN is a 4 or 6-digit personal identification number required to transfer money through UPI. Every account holder has the option to customize his/her UPI PIN. UPI payment applications like Paytm make it easier for users to perform direct bank-to-bank transfers within minutes. All you need to do is open the Paytm application on your mobile device and create your UPI account and you’ll be good to go!

How to use UPI:

• Open the UPI app on your phone
• Look for an option like “Send Money,” “Payments,” or “Money Transfer” within the app.
• You’ll be presented with a few ways to initiate the transfer. Select the most relevant option:

1. Enter UPI ID: If you know the recipient’s UPI ID (a virtual address like “name@bankname”), enter it here.
2. Scan QR Code: If the recipient has a QR code with their UPI details, use the app’s scanner to capture it.
3. Select from Contacts: If the recipient is in your phone’s contacts and has a linked UPI ID, you may be able to select them directly.

•  Enter the amount of money you want to transfer.
• The app will display a confirmation screen with the recipient’s details and transfer amount. Double-check everything is correct.
• Enter your UPI PIN to authenticate the transaction. 
• The app will process the transaction. You might see a success message or receive a notification once the transfer is complete

National Electronics Fund Transfer (NEFT)

NEFT is a one-to-one payment facility wherein the transactions can be processed only between the banks that offer NEFT-enabled services. Transactions made through NEFT do not take place in real-time; implying that it takes a few days for NEFT transactions to complete. To transfer funds through NEFT, you must add beneficiaries on the internet banking portal of your required bank. There are no limits on the amount of NEFT transactions. There is a fee applicable on all NEFT transactions; the amount varies from Rs. 2.5 to Rs. 25, depending on the amount being transferred. As per RBI guidelines, the payments made via NEFT are processed and settled in batches of half-hour.

How to use:

• Log in to your internet banking account
• On the main page, click on ‘Fund transfer’
• From the drop-down menu that appears, select ‘NEFT’. Note that you need to ‘Add beneficiary’ to the list of beneficiaries in your account if you haven’t done so already
• To add a new beneficiary, you need to click on ‘Add beneficiary’ option on the page
• Enter the beneficiary’s required information such as his/her name, bank account number, IFSC, etc.
• Click on ‘Confirm’ or ‘Add’ 
• To authenticate this step, you will be asked to enter the OTP sent to your registered mobile number
• After doing so, your action would be processed. It will take around 24 hours to add a beneficiary
• Once the beneficiary is added to your account, you need to select the beneficiary details (to whom you need to send the money) from your list of beneficiaries
•  Enter the amount that needs to be transferred and confirm your transaction
• Click on ‘Confirm’ and the amount will be transferred from your bank account to the other’s

Real Time Gross Settlement (RTGS)

RTGS stands for Real Time Gross Settlement. It is a money transfer system that allows the transfer of funds from one bank account to another in real-time and on a gross settlement basis. The term, ‘real-time’ implies that transactions through RTGS are processed right when they are initiated by the sender, and ‘gross settlement’ means that the instructions regarding the transfer of funds occur on a one-to-one basis. Transactions made through RTGS are processed on a one-to-one basis and can be performed at any time, on any day of the year. The Real Time Gross Settlement method is mostly used for transactions of high value. RTGS transactions can be used using both online and offline modes.

How to use:

• Log in to your internet banking account
• On the main page, click on ‘Fund transfer’
• From the drop-down menu that appears, select ‘RTGS’. Note that you need to ‘Add beneficiary’ to the list of beneficiaries in your account if you haven’t done so already
• To add a new beneficiary, you need to click on ‘Add beneficiary’ option on the page
• Enter the beneficiary’s required information such as his/her name, bank account number, IFSC, etc.
• Click on ‘Confirm’ or ‘Add’ 
• To authenticate this step, you will be asked to enter the OTP sent to your registered mobile number
• After doing so, your action will be processed. It will take around 24 hours to add a beneficiary
• Once the beneficiary is added to your account, you need to select the beneficiary details (to whom you need to send the money) from your list of beneficiaries
• Enter the amount that needs to be transferred and confirm your transaction
• Click on ‘Confirm’ and the amount will be transferred from your bank account to the other’s

Immediate Payment Service (IMPS)

IMPS is another method that allows users to transfer funds from one bank to another. IMPS stands for Immediate Payment Service, implying that by using this method, you can transfer funds immediately. IMPS transactions have a daily minimum limit of Rs. 1 Lakh and levy an additional service tax. The charges on transactions made through IMPS vary between Rs. 5 to Rs. 15, depending on the bank’s conditions. Immediate payment service is a robust, real-time fund transfer option that offers a 24*7 inter-bank fund transfer facility, which is safe and economical for all users.

How to use:

• Login to your mobile/internet banking account
• On the main page that appears, click on ‘Fund Transfer’ option
• Select ‘IMPS’ as your method of fund transfer
• Provide the beneficiary’s MMID and your MPIN to proceed
• Enter the amount that needs to be transferred
• Click on ‘Confirm’
• You might be asked to authenticate the transaction by submitting the OTP sent to your registered mobile number
• Enter the OTP and complete the transaction

How to Choose the Best Money Transfer Method?

Transferring money online has been one of the easiest methods to perform transactions. Whether it is about transferring money from one bank account to another or making transactions, online platforms have made it all the more easier and convenient for users to perform these tasks. Multiple methods such as NEFT, RTGS, IMPS and UPI allow users to transfer money online. However, each of these methods has its advantages and disadvantages. Hence, it is advised that you look into the benefits and drawbacks of each of these methods carefully before deciding to transfer money online.