What Is Online Banking, NEFT, RTGS And IMPS

What Is Online Banking, NEFT, RTGS And IMPS
Hello friends, today I will tell you what is online banking, and what is NEFT, RTGS, IMPS. Now-a-days every people using online banking for bill payment, online shopping, online booking a and etc. Before use online banking you should know all about online banking so read this full article you will know all about online banking.

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 need to use their unique customer ID number and password.
Internet banking can be used to:
  • Find out an account balance 
  • Transfer amounts from one account to another
  • Arrange for the issuance of cheques
  • Instruct payments to be made 
  • Request for a cheque book
  • Request for a statement of accounts 
  • Make a fixed deposit

Electronic Funds Transfer

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

What is 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.
  • Recipient's' name 
  • Recipient's account number 
  • Recipient's bank's name 
  • Recipient's bank's IFSC code

What is RTGS ?

RTGS stands for Real Time Gross Settlement. This is a real time funds transfer system which enables you to transfer funds from one bank to another, in real time or on a gross basis 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 banks 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 following information:
  • The Name of the beneficiary 
  • Beneficiary's bank address 
  • Beneficiary's account number 
  • Beneficiary's bank's IFSC code

What is IMPS ?

IMPS Stands for Immediate Payment Service. This is a real-time, inter-bank, electronic funds transfer system used to transfer money instantly within banks 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 d confirm orders that have been fulfilled.
To transfer money through IMPS, the you need to:
  • Register for IMPS with your bank 
  • Receive a mobile money identifier (MMID) form the bank
  • Receive a MPIN from the bank
  • The beneficiary’s mobile number
  • The beneficiary’s MMID
  • The transfer Amount
  • Your MPIN
Once you have both these, you can login or make a request through SMS to transfer a particular amount to beneficiary.
From the beneficiary to receive the transferred money, he must:

1.     Link his mobile number with his respective account
2.     Receive the MMI9D from the bank

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

As 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.

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