Sending Money Online First Time? Things You Must Know
The technological revolution has made life easier for all people worldwide, and it has helped everyone across industries. The finance industry is one of the industries that has ripped the most benefits, with technology making it possible to transfer money without physically being in the bank.
Steps On How To Send Money Online
There are a few ways you can send money online, and all of them have different steps.
National Electronic Fund Transfer (NEFT)
Based on the deferred settlement, this is the most common type of online money transfer, and it involves sending money between bank accounts.
Although there are no maximum or minimum restrictions on the amount of money you can transfer as per RBI, the bank you are transferring to or from can make their regulations and limits.
To send money using NETF:
- Using your password and login ID, login to the net banking portal of your bank
- Add a beneficiary, who is the person whose bank account you are transferring the money to. To add, you need the beneficiary’s account number, name as given in their bank account, and the IFS code to their bank branch.
- After adding the beneficiary, click on the ‘Transfer Funds’ button on the net banking portal, then select your beneficiary. Add the amount, then submit.
- Enter the OTP you get on your mobile phone to verify your fund transfer.
Real-Time Gross Settlement (RTGS)
In this online payment method, the payment happens on a real-time basis, meaning that your beneficiary receives the money immediately. In this payment, the minimum amount is Rs 2 Lakh, but there is no minimum.
To transfer funds using this method, ensure the branch of your bank you are using is RTGS enabled and that you are registered to use your bank’s internet banking services.
- Enter your customer or login ID and password to log in to the bank’s internet banking portal.
- Enter your beneficiary by providing their bank account number, name, and bank branch’s IFSC code.
- Once the bank adds the beneficiary, click the ‘Fund Transfer’ button, select your beneficiary and specify the amount.
- Enter your OTP and send the money.
Immediate Payment Service (IMPS)
Introduced by the National Payments Corporation of India (NPCI) in 2010, this online money transfer method has no time limit. Therefore, you can send money on holidays, weekends, and after working hours.
Just like the other two methods, you need to have internet banking enabled for your account. To transfer:
- Login to the internet banking website of your bank.
- Enter the name, account, number, and IFSccode of your beneficiary.
- After the bank adds the beneficiary, go to ‘Fund Transfer’, click IMPS, select your beneficiary, and add the amount.
- Enter the OTP and complete the transaction.
Unified Payments Interface (UPI)
Being the latest method of electronic funds transfer, UPI is a payment system based on a mobile app. It uses Virtual Payment Address to make transactions, and you do not need to provide personal or account information. The steps are:
- Download your bank’s UPI-enabled application or update your existing one.
- Login to your account.
- Go to the app’s section where you will need to create the VPA, select the account you want to create the VPA for, and create one.
- Click the UPI section of the app and enter your beneficiary’s VPA.
- Add the amount, confirm the beneficiary’s details and send.
Depending on your transaction needs, you can choose the best method for you, but you also have to look at the cost and security levels.