Fund Transfer Services - NEFT, RTGS, IMPS, AEPS & MTSS | SBI PO Prelims & Mains Preparation - Bank Exams PDF Download

Core Banking Services (CBS)

1. NEFT - “National Electronic Fund Transfer”

• It is a nation-wide payment system.
• One can transfer funds to others though self-account.
• Applicable to both Account holders and Non-Account holders.
• Funds can be  transferred through electronic media
• From July 10, 2017 settlements of fund transfer requests in NEFT system is done on half-hourly basis. There are twenty-three half-hourly settlement batches run from 8 am to 7 pm on all working days of week (Except 2nd and 4th Saturday of the month).
• Applicable for those customers, Corporates, Firms, whose bank is entitled with NEFT payment system.

Fast facts on NEFT

• There is no minimum or maximum limit while transferring through NEFT platform.
• If you have Bank account in any NEFT enabled branches, then you can transfer fund through internet or bank branches directly.
• If you don’t have an account, then there are few norms you need to follow, RBI sets an upper limit ceiling i.e. one can transfer up to Rs.50,000 per transaction.
• NEFT mode can also be used while transferring fund to Nepal under Indo- Nepal Remittance Facility scheme. Here also RBI sets an upper limit ceiling i.e. one can transfer up to Rs.50,000 per transaction.
• For these schemes, Banks charges as a service charge or processing fee for each NEFT transactions.
• While transferring NEFT fund you to anyone you must have His/Her Bank Accounts Details like Account Number, Account Holders Name, IFSC code.

2. RTGS-  “Real Time Gross Settlement”

• Processing of instructions starts at the same time
• Settlement of fund transfer occurs according to individuals basis or it can be transferred instantly. There is no such time slot.
• Funds can be transferred in Real-Time Basis.
• RBI sets a limit, One can transfer a minimum of Rs.2 Lakh
• The scheme is only applicable for those customers, Corporates, Firms,  whose bank is entitled with RTGS Payment platform system.

Fast facts on RTGS

• Only Account Holders can enjoy the service. There is no provision to transfer funds for Non-Account holders.
• The customer can transfer funds in Between 7AM to 6 PM (Timing changed from 26 August 2019)
• As per RBI guidelines, Banks charges Rs.25 + Application time charge (Rs.5) A total of Rs.30 for each transaction in-between Rs.2 lakh to Rs.5 lakh.
• However, Above Rs.5 lakh Bank charges Rs.50 + Application time charge

3. IMPS: Immediate Payment Services

• IMPS is an instant interbank electronic fund transfer service through mobile phones.

Fast facts on IMPS

• This service is available 24x7 for a transaction between interbank.
• It doesn’t require any “batches”. Though IMPS offers Instant Transfer.
• To be able to transfer fund through IMPS route you must first register for the immediate payment services with your bank.
• After successful registration, the bank will provide you “Mobile Money Identifier(MMID) and Mobile Personal Identification number(MPIN).
• For transferring of funds the Minimum & Maximum amount is to be Rs.1 and Rs.2,00,000.

4. AEPS: AADHAR Enabled Payment System

• It is a payment system which uses Aadhar card number and individuals online UIDAI authentication, which are linked to a customer's Bank account.
• A customer will have to register his/her Aadhar number to their existing bank account, provided their bank is AEPS enabled. 
• Through AEPS, the customer can withdraw or deposit cash, make the balance enquiry, and transfer funds. 
• The maximum amount of transaction per account per day is Rs.50,000. 
• These transactions are normally conducted by Business Correspondents (BCs) service centres.

5. MTSS: Money Transfer Service Scheme

• It is a system of money transfer for transferring personal remittances from abroad to beneficiaries in India.
• Through this only inward remittances into India are permissible. No outward remittance allowed. 
• A maximum of Rs.50,000 can be remitted inwards as per the money value. And a maximum of 30 transactions per the calendar year. 

6. Nepal Remittance Scheme

• It is a cross-border one-way remittance facility scheme for remittance from India to Nepal.
• Maximum amount remittance is INR 50,000 and beneficiaries will receive in Nepalese Rupees.