When I was going out with my family one day to eat a meal in my favourite restaurant. Most of my family members use banking cards and internet payment system nowadays. But my father suddenly gave cheque to the bill counter.
Everyone around me got surprised. It’s just for fun.
Direct Cash is the most popular way of paying money before 2016. Until, demonetization got introduced by the Prime minister of India. Where they used to demonetize Rs 500 and Rs1000 and introduced new Rs500 and Rs 2000.
Many people used to their transaction with cashless payments by swiping debit and credit cards. Before demonetiation what you actually did, direct payment, cheque and bank drafts. You stood in the bank with long queues to settle payment with some bank draft and cheque. It took a lot of effort, time-consuming and energy waste too.
But today, in this internet banking era, you are not taking your money notes out. Instead, to make our payments faster from the comfort of our home, we use third party apps for hassle-free money transfer. It saves a lot of time and energy to make our payments easily.
What is Third Party Fund Transfer?
Third party fund transfer is a fund transferring method where you can transfer your funds from your current bank account to another bank account, from the same bank or from the other bank also.
These kind of transfers can be done easily from the comfort of your situation.The funds are often transferred to the end party but, transactions can be started only to remit funds to the particular beneficiary.
If there is any technical fault when transaction, money will be refunded soon to your current bank account.
Transaction Method Under Third Party Fund Transfer:
NEFT
NEFT stands for National Electronic Fund Transfer. It was launched in 2005. It was introduced and maintained by Reserve Bank of India(RBI).The benefit of using NEFT transaction is no processing fee and maximum amount.
One of the disadvantages in NEFT is batchwise clearing mechanism system and 23 half-hourly settlement cycles.
Before launching UPI, NEFT was the quickest payment mode to transfer funds online. In NEFT, consumers must do transactions within the bank time. Timings for NEFT money transfer are 9:00am to 7:00pm (weekdays) and 9:00am to 1:00pm (weekends). Maximum transaction limit per day is Rs50,000.
RTGS
RTGS means Real Time Gross Settlement. It came into effect because to make large fund transfers easily. The minimum amount to transfer money from RTGS is Rs2,00,000. You don’t need waiting period to start your transaction. You can do payment transaction at any time without hassle-free. There is no upper limit amount.
The transaction inside India is totally free.The transaction outside India between Rs2,00,000 to Rs5,00,000 is Rs 25(extra charge).The transaction outside India above Rs5,00,000 is Rs 50(extra charge).
IMPS
IMPS means Immediate Payment Service. IMPS is used to transer funds from one bank to the other bank from all over India. This system is safe and economical to all users.
It can be used for 24*7 all the time.
The main disadvantage of using IMPS is service tax. For each transaction, they will deduct some money. This facility is given by NPCI through NFS switch.
UPI Payment
UPI means Unified Payments Interface. The main purpose of UPI is merging multiple bank accounts into a single mobile application. It also helps to merge several banking features, seamless fund routing and merchant payments into a single one.
UPI was launched on 11th April 2016 by NPCI.The major participants in UPI are payer PSP, payee PSP, remitter bank, beneficiary bank, NPCI, bank account holders and merchants.
You can send money directly to the required mobile number is the major benefit of using UPI. If you want to send direct bank transfer in UPI, you should furnish details like beneficiary account number, IFSC code, Bank name and branch and beneficiary name.
- Amount to be paid
- The account number from which account money debited
- Beneficiary bank name and branch
- Beneficiary account number
- Beneficiary IFSC code
- Name of the beneficiary
IFSC code is used, when the money transaction made for inter-bank. IFSC code is not necessary, when money transaction made for same bank.
Conclusion
In olden days, we never heard the word money transaction. Once it was introduced manually through banks. People started using banks for money transaction with government support and RBI.
Nowadays,you have third party fund transfer makes your transactions easily and hassle-free from the comfort of your place.Years are moving on and technology is advanced to ease your money transactions.
