Check Out the Types of Electronic Funds Transfer in India

Post demonetization, people prefer to transfer money using electronic fund transfer methods. The popularity of electronic payment options is sharply increasing as it allows users to transfer funds online using their mobiles and laptops, from the comfort of their homes and offices. Moreover, it eliminates geographical barriers and helps them transfer money in a hassle-free manner by simply using the IFSC Codes.

For instance, if you are transferring money to an HDFC Bank in New-Delhi’s Vasant Vihar Branch, you will need to provide HDFC Bank IFSC Code of that particular area.

But it can be confusing to decide the best method of transferring the money. Taking into the consideration factors like transfer limit, time, cost etc. you can make the right choice.

Listed below are some of the electronic methods, which can be used to transfer money between two accounts -

  • The Transaction between your own linked accounts of the same bank
  • The Transaction between different accounts of the same bank.
  • Transferring money through NEFT into a different bank’s accounts
  • Transferring money through RTGS into other bank accounts
  • Transferring money through IMPS into various accounts

1. Using NEFT

National Electronic Funds Transfer or NEFT is the most commonly used online payment option to transfer money from one bank account to another. Usually, salary transfers by companies are done using NEFT.

The funds are transferred on a deferred settlement basis, which implies that the money is transferred in batches. There is no maximum limit but this depends from one bank to another. For instance, the retail banking limit set by SBI is Rs. 10 lakhs.

Cost Involved

For transferring money to a different bank, Rs 2.50 to Rs 25 can be charged, based on the amount being transferred.


The money can be transferred only during the bank working days. The transactions cannot be completed over the weekends and on bank holidays. It will be completed on the next working day. Thus, you cannot make instant transactions using NEFT.


  • Recipient’s name
  • Recipient’s bank name
  • Recipients’ account number
  • IFSC code of the beneficiary bank

2. The RTGS Way

You can transfer money from one bank to another on a real-time basis using Real Time Gross Settlement or RTGS method. There is no maximum transfer limit, but the minimum is Rs. 2 lakhs. The transactions are processed throughout the RTGS business hours. Usually, the amount is remitted within 30-minutes.

To be able to transfer money through RTGS, it is required for the sender and the receiver bank branch to be RTGS enabled. You can find the list of RTGS authorized banks on the RBI website.

Cost Factor-

It costs a little more than NEFT. But still, it will not cost you more than Rs. 30 for transactions up to Rs. 5 lakhs. The fee varies from one bank to another.


  • Amount to be sent
  • Account number of the remitter or sender
  • Name of the recipient or beneficiary
  • Account number of the beneficiary
  • Beneficiary’s bank and branch name
  • IFSC code of the receiving branch
  • Sender to receiver information, if any

3. IMPS or Immediate Payment Service

For instant payments, send money through IMPS. The money is transferred instantaneously through mobile phones using this interbank electronic fund transfer service.

You can make the transactions 24X7X365 across banks including all weekends and bank holidays. The money can be transferred using phones, ATMs, Mobile Money Identifier (MMID) and internet banking. The idea is simple – to allow users to make payments with the mobile number of the beneficiary.

Requirements -

  • MMID of the Recipient
  • 7 Digit MMID Number
  • MMID of the receiver
  • Name of the beneficiary
  • Beneficiary’s mobile number
  • Account Number of the recipient
  • IFSC Codes of the beneficiary bank

4. Unified Payments Interface (UPI)

UPI-enabled apps allow you to make transactions (up to Rs 1 lakh) with any smartphone using a VPA (Virtual Payment Address). The steps are comparatively fewer and the apps enable users to transfer money in much faster. It doesn’t require users to share personal details like credit/debit card number or bank account. 

Moreover, it is possible to transfer the funds round the clock; and the transactions are done on a real-time basis.

The Cost Factor

There are no charges attached to using the UPI platform for transferring money from one person to another. Earlier, if a person transferred money to a merchant, about Rs. 15 used to be charged from the merchant, but after demonetization, this fee has been waived-off.