Online Money Transfer

How to Transfer Money Online - Step by Step Process

Transferring money online is easy and fast. Follow these simple steps:

• Log in to your bank’s online portal or mobile app. Use your username and password or biometrics to access your account.
• Select the money transfer option. Choose NEFT, RTGS, IMPS, UPI, or digital wallet transfer based on your preference.
• Add beneficiary details. Enter the recipient’s name, bank account number, and IFSC code (if required).
• Enter the amount to transfer. Double-check the amount before proceeding.
• Review the details. Confirm the beneficiary name and account details to avoid mistakes.
• Authorize the transaction. Enter the OTP (One-Time Password) sent to your registered mobile number or use other authentication methods.
• Complete the transfer. Once authorized, the money will be sent. You will receive a confirmation message or receipt.
• Track your transfer (optional). You can check the transaction status in your bank’s portal or app.

Advantages of Online Money Transfer

The following are the significant advantages of online money transfer: 

1. Unlike traditional banks that take two to three working days for transfers, online money transfer method provides instant cash availability. 
2. Support both international and domestic transactions through online money transfer offered by banks and financial institutions 
3. International transfers usually incur charges while domestic transfers are generally free 
4. One of the quickest ways to money transfer mode that completes domestic transfers within a day and international transfers within one to two days. 
5. One of the straightforward and user-friendly methods compared to other fund transfer methods. 

Charges and Fees for Online Money Transfers

When you transfer money online, some banks or services may charge a fee. These charges depend on the method you use and the amount you send.

Common charges include:

1. NEFT: Usually free or very low fees for small amounts. Some banks may charge for large transfers.
2. RTGS: Mostly used for high-value transfers. Banks may charge a fixed fee depending on the amount.
3. IMPS: Often comes with a small fee, especially for mobile or instant transfers.
4. UPI: Generally free, but some banks may apply nominal charges for frequent or high-value transfers.
5. Digital Wallets: Usually free for basic transfers, but some wallets may charge for certain services or cash withdrawals.

Tips for Safe and Efficient Online Money Transfers

The following is the list of vital points that should be remembered for online transfer of fund: 

1. To start online money transfers, download a mobile payment app such as Paytm and set up your account 
2. To initiate the transaction, gather the beneficiary’s details, including their bank account number, bank branch, and IFSC code. 
3. Some banks may charge an online transaction fee, which the sender must pay. 
4. To prevent fraud, keep your online banking details, including passwords and account information, confidential.

Factors to Consider for Money Transfer Online

1. Details of the beneficiary - In order to transfer money online, the beneficiary's details such as account number, branch, etc. play a vital role. As the individual initiative the online fund transfer, you will need to make sure that the details are accurate which will determine the effective fund settlement time. Additionally, it will be your responsibility to pay the required transaction fee for the online transfer.
2. Risk factors - Irrespective of which bank account you hold, if you are one of the internet or mobile banking users, your bank must be sending out do's and don'ts of safe online banking practices. Though they might sound like basic guidelines, it is essential to follow them so you don't fall prey to any of the online banking scams.

Online Fund Transfer Options

Following are few of the popular online money transfer options in India

In order to carry out any of the online money transfer methods, the bank levies a transaction charge based on various factors such as the fund value, fund transfer method, etc. Though these are the popular methods of transferring money online in India, the following new methods are also being used for added flexibility and convenience -

1. Digital Wallets - After the demonetization of high-value currency towards the end of 2016, many digital wallets have been introduced to the Indian market to facilitate digital transactions. Digital wallets are not only popular and useful for being an optional method for online transactions but also for the ease and convenience of transferring money to another user or bank account. Post demonetization, many banks have introduced their own digital wallets to cater to the increasing demand.
2. Unified Payments Interface - The Unified Payments Interface (UPI) from the National Payments Corporation of India is a new concept of digital transaction that is introduced by the Government of India. Based on the mobile platform, UPI allows users to transfer money from one bank account to the other without the need of bank details. In order to send and receive funds, UPI uses a Virtual Payment Address (VPA) which is created during the registration process with bank account details as the pre-requisites. Once the registration is completed, any UPI user can use the VPA to transfer funds.