Online Banking, NEFT, RTGS etc.: What is online Banking

Internet or online banking allows account holders to access their account from a laptop at any location. In this way, instructions can be issued. To access an account, account holders simply

Internet banking can be used to:

• Find out an account balance 
• Transfer amounts from one account to another 
• Arrange for the issuance of cheques 
• Instructions payments to be made 
• Request for a cheque book 
• Request for a statement of accounts 
• Make a fixed deposit 

Electronic Funds Transfers 

Electronic funds transfer is a convenient way of transferring money from the comfort of one's own home, using integrated banking tools like internet and mobile banking. 

Transferring funds via an electronic gateway is extremely convenient. With the help of online banking, you can choose to:

• Transfer funds into your own accounts of the same bank. 
• Transfer into other bank accounts using RTGS. 
• Transfer funds into different accounts of the same bank.
• Transfer funds into various accounts using IMPS. 
• Transfer funds into accounts in different bank, using NEFT. 

NEFT 

NEFT stands for National Electronic Funds Transfer. This money transfer system allows you to electronically transfer funds from your respective bank accounts to any other account, either in the same bank or belonging to any other bank. NEFT can be used by individuals, firms and corporate organizations to transfer funds between accounts. 

In order to transfer funds via NEFT, two things are required:

• A transferring bank 
• A destination bank 

Before you can transfer funds through NEFT, you will need to register the beneficiary who will be receiving the funds. In order to complete this registration, you will require the following information:

• Recipient's name 
• Recipient's account number 
• Recipient's bank's name Recipient's bank IFSC code 

RTGS 
RTGS stands forbReal Time Gross Settlement. This is a real-time fund transfer system which enables you to transfer from one bank to another, in real time or on a gross basis. The transferred amount is immediately deducted from the account of one bank, and instantly credited to the other bank's account. The RTGS payment gateway is maintained by the Reserve Bank of India. The transactions between bank's are made electronically. RTGS can be used by individuals, companies and firms to transfer large sums of money. Before remitting funds through RTGS, you will need to add the beneficiary and his bank account details via your online banking account.

In order to complete this registration, you will require the

• Name of the beneficiary 
• Beneficiciary's account number 
• Beneficiary's bank address 
• Beneficiary's bank's IFSC code 

IMPS 

IMPS stands for Immediate Payment Service. This is a real-time, inter - bank, electronic funds transfer system used to transfer money instantly within bank's across India. IMPS enables users to make instant electronic transfer payments using mobile phones through both, Mobile Banking and SMS. It can also be used through ATMs and online banking. IMPS is available 24 hours a day and 7 days a week. The system features a secure transfer gateway and immediately confirms order that have been fulfilled. 

• Register for IMPS with your bank 
• Receive a Mobile Money Identifier (MMID)  from the bank 
• Receive a MPIN from the bank 

To transfer money through IMPS, the you need to:

Once you have both these, you can login or make a request through SMS to transfer a particular amount to a beneficiary. 

For the beneficiary to receive the transferred money, he must:

1. Link his mobile number with his respective account 
2. Receive the MMID from the bank 

In order to initiate a money transfer through IMPS, you will need to enter the following information:

1. The beneficiary's mobile number 
2. The beneficiary's MMID
3. The transfer amount 
4. Your MPIN 

Wanted soon as money has been deducted from your account and credited into the beneficiary's account, you will be sent a confirmation SMS with a transaction reference number, for future reference. 

Differences between NEFT, RTGS & IMPS