Open a DBS Bank Account Now
A look at the various ways of online money transfer.
Traditional fund transfers are now faster and simpler. With RBI-approved digital options, you can send money conveniently, whether domestically or internationally. This article covers the main online money transfer methods.
Fund Transfer is a payment system that refers to the movement of funds from one bank account to another. It typically involves moving cash from a remitter account to a beneficiary account via a sequence of steps. Besides streamlining money transfers, this facility also allows you to repay loan EMIs, pay utility bills, and conduct other similar transactions. In India, you can initiate online fund transfers through different methods.
Depending on your needs and the transfer amount, you can choose from several fund transfer methods. Here’s a breakdown of the key options.
The National Electronic Fund Transfer (NEFT) is an RBI-operated and widely preferred form of electronic fund transfer service that allows the movement of funds between bank accounts. There is no limit to the amount of money you can transfer via NEFT, and the funds get settled in batches in half-hour intervals.
Real-Time Gross Settlement (RTGS) is another fund transfer system owned and operated by the RBI. In RTGS, fund transfer takes place in real-time as opposed to half-hourly settlements. RTGS is meant for high-value transactions and with INR 200,000 being the minimum transaction amount. There is no maximum cap on the amount you can transfer via RTGS.
Immediate Payment Service (IMPS) is a 24x7x365 fund transfer facility launched by the National Payment Corporation of India (NCPI) in 2010. This real-time system offers electronic online fund transfers via mobile banking, ATMs and SMS using Mobile Money Identifier (MMID) – a 7-digit code issued to the participating banks. The MMID code is issued to mobile banking customers who wish to use the IMPS provision.
The Unified Payment Interface (UPI) is an NPCI product that enables you to initiate an online money transfer into a beneficiary’s account via a Virtual ID rather than a bank account. Most digital payment applications are UPI enabled. You can register for UPI by verifying your bank account against your registered mobile number. You only need the beneficiary’s Virtual ID and mobile number to transfer funds through UPI. The maximum transfer limit is INR 100,000, and the provision is accessible round-the-clock.
Instant money transfer allows you to send funds immediately without waiting for traditional bank processing times. Using mobile apps or internet banking, you can perform a fund transfer directly to a recipient’s account or enable them to withdraw cash without a card using a secure OTP. This 24x7 facility ensures your money reaches the beneficiary quickly, making it ideal for urgent payments or emergencies.
Most bank accounts now offer fund transfers to international accounts. To place the remittance request, you need the beneficiary bank account and branch details, SWIFT code, IBAN, etc. Under the RBI’s Liberalised Remittance Scheme guidelines, Resident Indians can send money to RBI-approved countries. The maximum annual transaction limit is capped at USD 250,000 (or its equivalent in other currencies).
The Electronic Clearing Service (ECS) is one of the most efficient money transfer methods for recurring or bulk payments. ECS enables employers, utility companies, and banks to automatically credit or debit accounts on a set schedule. Whether it’s salary credits, pension payments, or utility bill debits, ECS simplifies regular transactions, reduces paperwork, and ensures timely processing.
Online payment transfer to merchants has become a standard feature of modern banking. Using debit or credit cards, UPI, or internet banking, you can pay for e-commerce purchases, utility bills, travel bookings, or subscriptions directly from your account. This method of online banking money movement is secure, encrypted, and provides instant confirmations for successful transactions.
To perform how to transfer money from one account to another online, follow these steps:
Charges and limits vary depending on the fund transfer methods you choose:
Modern digital banking provides tools to simplify online money transfer and save time:
Money Transfers have become more accessible than ever. You can transfer funds domestically and internationally at any time through convenient, RBI-authorised channels like banks and digital payment applications. Get started with seamless fund transfers with DBS Bank. Open your savings account with us today and enjoy convenient, secure online banking.
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.
