How to Transfer Money from One Bank Account to Another Bank Account?

How to Transfer Money from One Bank Account to Another Bank Account

There are quite a lot of situations where we need to transfer money from one bank account to another. Throwing some light on how important it is to know about various methods to transfer money from one bank account to another bank account, we have curated a list of options and the steps to do that. Read this blog thoroughly and never face problems in transferring money from one bank account to another!

Online Ways to Transfer Money from One Bank Account to Another

You can use either of the following online methods to transfer money from one bank account to another-

Transfer money from one Bank to another Bank account via UPI- Unified Payment Interface

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 as the UPI ID. The UPI ID is a unique identification for a bank account that is used to send and receive funds from one bank to another. The UPI PIN is a 4-digit personal identification number required to transfer money through UPI. Every account holder has the option to choose his/her UPI PIN.

Here’s how you can transfer money from one bank to another through UPI-

  • Selecting a Contact/Entering Mobile number – Sending money is as simple as sending a message. Just select a phonebook contact or enter a mobile number, specify the amount to be transferred and enter your PIN. That’s it! Your payment will be completed in a few seconds.
  • Scanning a UPI QR code – You can also send money through UPI by scanning the receiver’s QR code. All you need to do is open the Paytm mobile payment application on your phone, click on ‘Pay’, and select ‘QR code’. Scan the QR code of the receiver and enter the amount to be paid. Now enter your PIN and your payment will be completed in a few seconds.
  • Entering UPI ID – To send money through UPI ID, all you need to do so is open the mobile payment application, and enter the receiver’s UPI ID. After this, you need to enter the amount that needs to be transferred and verify the transaction by entering your MPIN. Your transaction will be completed in a few seconds.
  • Entering Account Number & IFSC – This the traditional way of payments and it is also supported on UPI. You may enter the account number & IFSC of the person you want to send money to, specify the amount and enter your PIN. Your payment will be completed in a few seconds.

Paytm Mobile payment application has made it further easy to perform UPI transactions at the comfort of your home. In UPI payment applications such as Paytm, you don’t need to enter the receiver’s UPI ID. You can simply select the receiver’s contact from your phone book or enter the receiver’s contact number to send money via UPI.

Transfer money from one Bank to another Bank account via IMPS- Immediate Payment Service

IMPS is another method that allows users to transfer funds from one bank to another. IMPS stands for Immediate Payment Service, implying that using this method, you can transfer funds immediately. IMPS transactions have a daily maximum 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 24*7 inter-bank fund transfer facility, which is safe and economical for all the users.

Here’s how you can transfer money from one bank to another through IMPS-

  • 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

Transfer money from one Bank to another Bank account via NEFT- National Electronics Fund Transfer

NEFT is basically 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.

Here’s how you can transfer money from one bank to another through NEFT-

  • Log in to the 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

Transfer money from one Bank to another Bank account via RTGS – Real Time Gross Settlement

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.

Here’s how you can transfer money from one bank to another through RTGS-

  • Log in to the 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 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

Transfer money from one Bank to another Bank account via Cheque

Cheque is one of the most traditional ways to transfer money from one bank account to another. The payee signs a cheque in the name of the receiver, mentioning the amount that needs to be paid. The receiver can further visit the bank and submit the cheque to the concerned official at the bank. The money will be deducted from the payee’s bank account and will be transferred to the receiver’s bank account as soon as the cheque gets cleared. It is important to note that if there’s not enough money in the payee’s bank account, the cheque will bounce back and the payee will have to pay an additional fee for the same. There are no restrictions on the minimum/maximum amount that can be transferred to a bank account via cheque.

To Conclude:

Since the online ways are more preferred, considering the ease and convenience, there are only a few ways that allow you to transfer money from one bank account to another using the offline methods. While almost all the methods, apart from cheque, can be used to transfer money online, there are a few methods such as NEFT and RTGS that offer both online and offline services. Out of all, UPI has been the most preferred method to transfer money from one bank account to another owing to the innumerable benefits that it offers.

Bonus Read: Learn how to use UPI to transfer money from one bank account to another!

FAQs
What are the most common methods of online money transfer?
The various methods of online money transfer include RTGS, IMPS, NEFT, UPI and digital wallet. Each of these methods can be performed online and allow easy and fast money transfer facility.
Is money transfer free of cost?
In most domestic transactions, money transfer is free of cost. However, some banks may charge a minimal fee on money transfer through a specific method.
How much time does it take to transfer money online?
Online money transfer takes only a day’s time to complete. Various methods of money transfer like UPI or IMPS can be completed immediately.
Which is the best method for online money transfer?
All the methods of money transfer are useful depending upon the sender’s needs and preferences. For instance, if you need to transfer an amount more than Rs. 2 lakh, then you should opt for RTGS. If you need to transfer money to your landlord as your monthly rent, then UPI money transfer could be your preferred method. Similarly, if you wish to transfer a lesser amount immediately, then you may go for IMPS.
When should I use RTGS to transfer money?
RTGS is best suitable for transactions that must be settled in real-time, and that have a minimum amount of Rs. 2 lakh.
Is IMPS better than other modes of online money transfer?
IMPS can be considered better than other modes of online money transfer as it facilitates immediate transfer of funds. Additionally, this immediate payment service can be accessed even on bank and public holidays.
How do NEFT money transfers work?
As and when a user initiates a transaction through NEFT, it gets queued up. Every hour, these transactions are cleared in batches. It must be noted that NEFT transactions that are initiated after the bank working hours are automatically assumed to be automated transactions initiated using the ‘Straight Through Process’ (STP) modes by the bank.
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