Best 5 Safest Ways for Inter-Bank Transfers in India

In India, inter-bank transfers have become a common practice, and with the advancements in technology, it has become much easier to transfer money between banks. However, safety and security remain top priorities when it comes to transferring funds.

In this article, we will cover the topic of what is Inter-Bank transfer in India and the 5 safest ways for inter-bank transfers in India.

What are Inter-Bank Transfers in India?

Inter-bank transfer in India refers to the transfer of funds from one bank account to another bank account, where both accounts are held with different banks. 

For example, if you have an account with Bank A and you want to transfer funds to someone who has an account with Bank B, you will need to initiate an inter-bank transfer.

Inter-bank transfers can be initiated through various electronic payment systems such as NEFT, RTGS, IMPS, and UPI. These systems allow individuals, businesses, and organizations to transfer funds quickly, securely, and conveniently from one bank account to another bank account.

Inter-bank transfers have become an essential part of modern-day banking, as they allow for hassle-free transactions between different banks, making it easier for people to send and receive money across the country.

The 5 safest ways for Inter-Bank transfers in India 

However, with increased convenience, there are also concerns about safety and security when it comes to inter-bank transfers. Here are 5 of the safest ways to transfer money between banks in India.

1. NEFT(National Electronic Funds Transfer)

NEFT is a popular and safe mode of inter-bank transfer in India. It is a nationwide electronic payment system that allows for the transfer of funds from one bank account to another. 

NEFT transactions can be created online through internet banking, mobile banking, or even by visiting a bank branch. 

Pros:-

1. It has a wide network of banks participating in it.
2. Its charges are typically lower than other electronic fund transfer methods.
3. It allows for high-value transactions.

 Crons:-

1. NEFT transactions can only be initiated during the working hours of the bank.
2. NEFT is not an instant transfer method.
3. Some banks may have a daily transaction limit for NEFT.

2. RTGS (Real-Time Gross Settlement)

RTGS is an electronic funds transfer system in India that enables individuals and businesses to transfer money between different bank accounts in real-time.

Pros:-

1. It allows for real-time transfer of funds.
2. RTGS is ideal for high-value transactions as there is no upper limit.
3. It is a secure and reliable method of transferring money.

 Crons:-

1. RTGS transactions are typically more expensive than other electronic fund transfer methods.
2. It has a minimum transaction limit of Rs. 2 lakhs. 

3. IMPS (Immediate Payment Service)

IMPS is a real-time inter-bank electronic fund transfer service in India that allows for the transfer of money between different bank accounts using mobile phones or internet banking.

Pros:-

1. It allows for instant transfer of funds.
2. IMPS can be used at any time, day or night.
3. It is a secure and reliable method of transferring money. 

Crons:-

1. IMPS has a lower transaction limit compared to RTGS.
2. IMPS requires a stable internet connection or mobile network to function properly.

4. UPI (Unified Payments Interface)

UPI (Unified Payments Interface) is a real-time payment system in India that allows individuals and businesses to transfer money between different bank accounts using a mobile app.

Pros:-

1. UPI allows for instant transfer of funds.
2. UPI is easy to use and does not require any complex registration process or login credentials.
3. UPI can be used at any time, day or night.

Crons:-

1. UPI has a lower transaction limit compared to other electronic fund transfer methods.
2. UPI requires a stable internet connection or mobile network to function properly.
3. Sometimes UPI transactions can be fraud and scams, so it is important to take necessary precautions.

5. Mobile Wallets

Mobile wallets like Paytm, PhonePe, and Google Pay have become a popular mode of inter-bank transfer in India. These mobile wallets allow for the transfer of money between banks instantly. 

Pros:-

1. Mobile wallets are convenient.
2. Mobile payments are more secure than traditional payment methods.
3. Many mobile wallets offer loyalty programs that reward users for making purchases.

Crons:-

1. Mobile wallets are not yet accepted everywhere.
2. Mobile wallets use encryption and other security measures, there is always a risk of hacking or fraud.

Overview

It is important to ensure that the mode of transfer chosen is safe and secure. The above-mentioned modes of inter-bank transfer are some of the safest and most popular in India. It is always to choose a trusted and reliable mode of transfer.

1. NEFT(National Electronic Funds Transfer)
2. RTGS (Real-Time Gross Settlement)
3. IMPS (Immediate Payment Service)
4. UPI (Unified Payments Interface)
5. Mobile Wallets

Also Read More: A Step-by-Step Guide to making Payments through BBPS