Online Fund Transfer

Online fund transfer refers to the digital process of moving money from one bank account to another through internet-based platforms. This convenient method allows users to send and receive funds securely, often in real-time, without the need for physical bank visits. Kotak811 allows you to transfer funds online, helping you streamline all kinds of transactions, be it personal and business, with ease.    

Different modes of online fund transfer at Kotak811 

There are many ways for transferring money online. Each offers different transfer speeds and limits. Let’s look at them below: 

IMPS (Immediate Payment Service) 

IMPS works through the National Payments Corporation of India (NPCI). It allows real-time money transfers 24/7, including holidays, with a limit of up to ₹5 lakh per transaction. You can make quick, small-to-medium-sized transfers as it is a fast and reliable service. The transaction charges vary by bank but are typically affordable.  

You can transfer funds through IMPS between diverse bank accounts using mobile phones or internet banking. You only have to provide the recipient's account details (account number and IFSC) or mobile number and MMID (Mobile Money Identifier).  

NEFT (National Electronic Funds Transfer) 

NEFT is ideal for non-urgent transfers, with no minimum or maximum transfer limits and 24/7 availability. Usually, transfers are processed in half-hourly batches. Therefore, it is suitable for higher-value transactions that don't require instant processing​.   

When you initiate a transfer, your bank forwards the payment details to the RBI's central system. The RBI processes the transaction in the next available batch, debiting your account and crediting the beneficiary's account. It is suitable for transferring money to other bank accounts. You only require the recipient's account number and IFSC code for processing​.  

RTGS (Real-Time Gross Settlement) 

RTGS offers instant, real-time transfers for high-value transactions, with a minimum limit of ₹2 lakh. Available 24/7, it ensures secure and fast transfers for large amounts with no upper cap. It is a preferred choice for time-sensitive payments​ and when you want to transfer money between accounts in different banks.   

As soon as you initiate the transaction, the request is processed directly by the RBI. The institution debits the sender's account and credits the beneficiary’s account within minutes. The transfer of funds is faster as there is no batching involved.  

UPI (Unified Payments Interface) 

UPI enables instant fund transfers via mobile apps and links multiple bank accounts to a single app. With a daily transfer limit of ₹1 lakh, it is widely used for everyday transactions, utility payments and merchant payments. ​ 

UPI links your bank accounts to a mobile app, allowing instant money transfers using a Virtual Payment Address (VPA) or UPI ID. You can initiate the transfer by entering the recipient’s UPI ID or scanning a QR code.  

The transaction is authenticated using a PIN, and funds are transferred instantly between accounts. UPI functions as an interoperable system across banks, providing an easy and secure way to make small or medium-sized transfers anytime.  

IMT (Instant Money Transfer) 

IMT allows fast transfers without requiring the recipient's bank account details. So, you can make transfers during emergencies. The recipient can then withdraw the funds via ATMs using their mobile number.  

The recipient receives an IMT code via SMS and can withdraw the funds at a designated ATM without needing a bank account. They are perfect when you need to transfer funds to someone who needs immediate cash​. 

ESC (Electronic Clearing Service) 

ECS is primarily used for bulk payments. It automates recurring transactions, offering you a reliable way to handle scheduled payments in batches. This includes salary, EMI and utility bill payments. 

The payer authorises the bank to debit their account on a specific date and credit multiple beneficiaries. This service processes payments in batches, ensuring timely settlements without manual intervention​ 

Final note 

Online money transfers are convenient as well as environmentally friendly. By reducing reliance on paper-based processes like cheques and physical receipts, they help cut down on paper use. This flexibility and accessibility they provide, has made them a preferred choice for managing finances efficiently.