Types Of Payment, Check NEFT, RTGS, IMPS, UPI, USSD Payment Method

Types Of Payment: Electronic payment systems have become daily financial transactions in today’s fast-paced banking environment. Money gets transferred immediately and with safety within accounts, be it domestic or international. There are mainly five types of electronic payment systems used in India – NEFT, RTGS, IMPS, UPI, and USSD.

1. NEFT- National Electronic Funds Transfer

NEFT is a National payment system, which allows one to one transfer of fund between any two banks in India. It is operated by Reserve Bank of India; permitting the customer to remit funds from his account held with one bank to the account of any other bank located anywhere in the country.

Important Features:

Time Gap between transactions: NEFT accommodates transaction batches every half an hour. NEFT operates throughout the week with no distinction between weekdays and weekend days, even on holidays (was operating during bank hours till lately).

Time of Settlement: It happens in 1-2 hours, according to the batch processing.

Transfer Limits: There are no restrictions of minimum and maximum transfers though certain banks may have a higher transfer limit.

Charge: Nearly free transactions with some banks have a nominal charges for transferring fund.

2. RTGS (Real-Time Gross Settlement)

RTGS is used mainly for high-value transactions and allows real-time gross settlement. It is the fastest available method to transfer money between banks in India and also a RBI-governed settlement.

Important Features:

Time of Transactions: Accessible throughout the day, including Saturdays and even on Sundays and holidays.

Settlement Time: Through RTGS, funds are settled in real-time and, therefore, there is no time lag.

Transfer Limits: The minimum amount is ₹2 lakhs. No upper limit.

Charges: A few banks charge small amounts of fees for transacting under the RTGS. These charges are usually not levied for a high-value transaction or preferred customer.

3. IMPS (Immediate Payment Service)

An instant payment system of IMPS that allows transfers of funds in a real-time basis between banks, 24×7. It is highly used for immediate transfers across the bank accounts of India.

Important Features

Transaction Timings: IMPS is available on all days and during holidays also.

Settlement Time: Funds are transferred instantly in real-time.

Transfer Limit: IMPS generally supports transactions of up to ₹2 lakhs, though transfer limits may differ from one bank to another.

Charges: The charges of IMPS are very minimal and differ with the banks.

4. UPI (Unified Payments Interface)

UPI stands among the most revolutionary forms of digital payment systems presented in India, where a person can transfer money in a split second from one bank account to another through a mobile app. UPI makes a transaction straightforward as it eliminates the hassle of keying in an IFSC or the 12-digit bank account number of the recipient instead using a Virtual Payment Address (VPA), or UPI ID.

Important Features:

Transaction Timings: Available 24×7 throughout the year including weekends and holidays.

Settlement Time: Almost instant transfer of funds.

Transfer Limit: Usually, ₹1 lakh per transaction, although it will depend on the banks and the UPI platforms.

5. USSD

USSD is a banking facility through a mobile, with which payments can be made for simple banking transactions like fund transfers, balance enquiries, and mini-statements over the air without any internet connectivity from a feature phone. To encourage the trend of opening bank accounts among the rural and lower strata families, it was proposed and introduced under the Digital India scheme.

Important Features:

Transaction Timings: USSD is always available 24×7 but can be operator-specific.

Settlement Time: Transactions occur in real-time.

Transfer Limits: The Limit is generally ₹ 5,000 per transaction.Cost: USSD transactions are very cost-effective, normally less than ₹1.50 per transaction.

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