Bank transfer as a concept has evolved tremendously during the past few years. The various ways to transfer funds today and the multitudes of platforms like online banking apps at our disposal make the process of transferring our money a lot easier. The growth of technology and the rise of the smartphone market has brought the power of managing and running bank transactions right at the tip of our fingers. Desktops, laptops, and phones have become portable banks so to speak, and have been progressing rapidly in the past decade.
The different ways to transfer funds:
The National Electronic Fund Transfer is the most commonly used way of transferring funds from the bank. In an NEFT transaction, one requires an account number of the receiver’s savings account and the IFSC code of the individual that he/she needs to send the money to. Most banks have no limit set when it comes to NEFT transactions.
Immediate Payment Service is an instant transfer facility that is considered as an amalgamation of NEFT and RTGS. The receiver’s account number, IMPS number, and mobile number are required to complete the transaction. To avoid any case of fraud, the transaction limit is set lower compared to other modes.
Real-Time Gross Settlement has an instantaneous time frame, unlike NEFT that is conducted in a time frame of 30 minutes. Payments made through RTGS are final and irrevocable in nature.
Using a Virtual Payment Address which is unique to every user, a Unified Payments Interface i.e., UPI payment takes place online through an application on a smartphone. There are concepts like UPI ID and a security pin code that need to be typed in for every transaction. There is also a simple scan and pay facility that uses QR code information to get the receiver’s details. UPI is incredibly popular these days due to its efficiency and convenience.
Good old methods of cheque transfers are still applicable and useful in case there is a lack of network facility or some technical issue with the bank. To be fair, that is a rare case; almost as rare as never even being a problem. This results in the use of the cheque system being less preferred recently but it is still a reliable way to conduct transactions that probably will be in use despite any advancement that comes up in the market.
Changing times brings along with its new methods of doing things. New methods and practices are brought in to make the process simpler, faster, safer and the area of money transfer is no different. Online bank transactions to transfer funds have been getting quicker and more convenient and the process of opening and managing a savings account has become a lot easier today. The future of banking is online and online transactions will only keep getting quicker and better as time goes by.