Domestic money transfer is the electronic transfer of money from one bank account to another domestically. With the advent of the internet, domestic transactions have become simple and easy. You can seamlessly transfer money to another bank account from the comfort of your home, office, or while being on the go.
There are multiple transaction modes in domestic money transfer with varying features like transfer amount limit, the number of transfers allowed, and the procedure to perform domestic money transfer.
Here are the different means of transferring money domestically with their step-by-step procedures:
1. National Electronic Fund Transfer (NEFT)
NEFT is the simplest mode of transaction used in domestic money transfers. Today, the majority of bank account holders use NEFT to make a seamless transfer. There are two pieces of information required to initiate an NEFT transaction – First, the recipient’s account number and the IFSC code of the recipient’s account.
The best part is that there is no cap on the transfer amount. However, some banks in India may set a limit. For instance, you may not be allowed to transfer more than Rs. 2 lakhs a day.
How to transfer money using NEFT?
Step 1: Click on the Fund Transfer tab and select NEFT.
Step 2: Select the recipient’s account and enter the recipient account details like name, account number, IFSC code, and the transfer amount.
Step 3: Accept the terms and conditions of the transfer.
Step 4: Cross-check the details you have provided, and complete the transaction.
2. Real Time Gross Settlement (RTGS)
It is similar to NEFT. The process of crediting the amount to the recipient account along with the minimum amount allowed differs. You can opt for RTGS if you want to transfer more than two times, and there is no upper cap on the amount. As the name suggests, the transfer happens on a real-time basis. It hardly takes 30 minutes for the funds to get credited to the recipient account.
How to transfer money using RTGS?
Step 1: Click on the Fund Transfer tab and select RTGS.
Step 2: Select the recipient’s account and enter his/her account details.
Step 3: Accept the terms and conditions.
Step 4: Cross-check the information provided.
Step 5: Click on the Confirm tab to complete the process.
3. Immediate Payment Service (IMPS)
It is an instant domestic money transfer service used anytime from anywhere. It is more like NEFT and RTGS, but there is a cap on the transfer amount to avoid fraudulent activities.
To transfer money domestically using IMPTS, it is mandatory to know the recipient’s IMPS ID along with his/her mobile number.
How to transfer money using IMPS?
Step 1: log in to your net banking account.
Step 2: Click on the Fund Transfer tab and select IMPS.
Step 3: Select your account (debit or credit account), mode of transfer, and the recipient account.
Step 4: Enter the transfer amount and click on the Confirm button.
Step 5: Cross-check the information provided and confirm the transaction with an OTP received on your mobile number.
Step 6: Confirm the transaction to complete the process.
You can perform domestic money transfers at any time. It is available 24×7. However, in the case of RTGS and NEFT, you will have to do it during working hours.
4. Unique Payments Interface (UPI)
It is the most common mode of transaction these days. UPI is a real-time payment system that enables customers to transfer money through a smartphone using a virtual payment address (VPA).
The perks of using UPI is that there is no need for the recipient to provide his account details. Only his registered mobile number and name would suffice. It is available 24×7, and you can transfer up to Rs. 1 lakh with UPI-enabled applications like PayTM, Google Pay, Phone Pay, etc.
5. Cheque
Using a cheque as a mode of domestic money transfer is common in businesses. It allows you to transfer money from one account to another by cheque. You will have to draw a cheque in the recipient’s name, and the recipient will submit the same to his bank. It is time-consuming compared to other modes of transfer. Contact Muthoot FinCorp customer support number to resolve your money transfer services.
However, the best part is that there is no limit on the transfer amount. It is ideal when you want to transfer a more significant amount from your account to another account. On the other hand, you can use a cheque to withdraw cash, and with withdrawal, each bank sets a limit. If you withdraw more than the set limit, you will have to incur overdraft charges.