How to Transfer Money from One Bank to Another Online

• There are multiple ways to transfer money between banks, such as NEFT, RTGS, IMPS, and UPI. Alternatively, you can transfer money through a cheque.
• You must consider the transaction value, related costs, and the time involved before you transfer money from one bank to another.
• Ensure you fill in the correct details of the recipient, such as name, account number, IFSC code, etc. for a smooth transfer.

A bank transfer is a financial transaction in which funds move between two bank accounts. These accounts could be in the same or different banks. Several methods facilitate this transfer, and you can select the one that best suits your needs. Of these, we have listed the top five ways to transfer money from one bank to another. Let's check them out!

Here are some of the most popular ways to transfer money from one bank to another:

1: Transfer Money from One Bank to Another Bank Account via NEFT (National Electronic Funds Transfer)

Owned and operated by RBI, NEFT is a nationwide centralised payment system. There is usuallynoamount capping on the transfer. You can expect it to be completed within two hours from the batch settlement, which takes place at half-hourly intervals throughout the day.

Visit your bank branch and ask for the NEFT form. Through this form, you can transfer money between banks. In case you cannot visit the branch, log in to your internet/mobile banking account and follow these steps:

• Step 1: Click on the ‘NEFT’ option, which normally appears under the ‘Fund Transfer’ tab.
• Step 2: Select the beneficiary i.e., the account in which you want to transfer the funds.
• Step 3: If you are transferring money for the first time, opt for ‘Add Beneficiary’.
• Step 4: Fill in the necessary details like beneficiary name, bank account number, and IFSC code, and click on ‘Confirm’ or ‘Add’.
• Step 5: Authenticate the addition with the OTP received on your registered mobile number. (It may take around 24 hours for the new beneficiary to reflect in your account.)
• Step 6: Next, enter the amount you want to transfer.
• Step 7: Finally, click on ‘Confirm’ to transfer money between banks.

What are the fund transfer charges related to NEFT?

RBI has laid down the maximum fees that banks can charge to transfer money from one bank to another. You may ask your bank to share details.

2: Transfer Money from One Bank to Another Bank Account via RTGS (Real Time Gross Settlement)

As the name suggests, there is a real-time settlement of funds transferred, through which you can expect a quicker transfer. However, there is a minimum limit here. You can use RTGS only when the transfer amount is ₹2 lakh or more.

To transfer money from one bank to another, you can ask your bank for the RTGS form and fill in the requisite details like recipient information and amount to transfer.Alternatively, you can initiate the transfer through your internet/mobile banking account with these common steps:

• Step 1: Click ‘RTGS’ under the ‘Fund transfer’ tab.
• Step 2: Next, select the beneficiary to whom you want to transfer the funds.
• Step 3: If this is the first time that you are initiating the transfer, choose ‘Add Beneficiary’.
• Step 4: Enter beneficiary name, bank account number, IFSC code, etc. and click on ‘Confirm’ or ‘Add’.
• Step 5: Select ‘Confirm’ or ‘Add’ and enter the OTP received on your registered mobile number. (The new beneficiary may be reflected in your account in around 24 hours.)
• Step 6: Once the beneficiary is selected, enter the amount to transfer money from one bank to another.
• Step 7: Initiate the transfer by clicking ‘Confirm’.

Banks charge service fees in line with RBI guidelines . Seek clarity from your bank on the amount of fees payable.

3: Transfer Money From One Bank to Another Bank Account via IMPS (Immediate Payment Service)

IMPS enables a real-time money transfer and is offered by NPCI (National Payments Corporation of India). While the maximum amount that you can transfer is ₹5 lakh, it can vary from bank to bank.

You can choose from multiple channels like ATMs, SMS, bank branches, and online banking to transfer money from one bank to another. In case you wish to avail the convenience of internet/mobile banking, here are the usual steps to follow:

• Step 1: Opt for ‘IMPS’ as the mode of transfer under the ‘Fund transfer’ option.
• Step 2: Enter your MPIN (Mobile Personal Identification Number) and beneficiary’s MMID (Mobile Money Identifier).
• Step 3: Next, mention the transaction value to transfer money between banks.
• Step 4: You may be required to authenticate the transaction with the OTP received on your registered mobile number.

The charges vary according to the amount being transferred and are also different from bank to bank.

4: Transfer Money From One Bank to Another Bank Account via UPI (Unified Payments Interface)

A real-time payment system developed by NPCI, UPI facilitates the movement of funds between bank accounts through mobile phones.NPCI recently increased the transaction limit from ₹1 lakh to ₹5 lakh for certain transfers; hence, it is important to check with your bank if their UPI application supports this feature.

You can seamlessly transfer money from one bank to another through a UPI-based application by following the steps below:

• Step 1: Select ‘Send Money’, ‘Send Payment’, or another option indicating initiation of fund transfer.
• Step 2: Enter the UPI ID or VPA (Virtual Payment Address) of the recipient and mention the amount you want to transfer.
• Step 3: Provide your UPI PIN to transfer money between banks.

Also read: Your Mutual Fund Investment Experience Simplified with UPI Payments

Normal UPI transactions usually do not attract any charges.

5: Transfer Money from One Bank to Another Bank Account via Cheque

A cheque is a paper financial instrument that you can use to transfer money between banks. You can use a cheque leaf from your chequebook to initiate the fund transfer. It usually takes a few business days for the funds to get transferred.

You can transfer money from one bank to another through a cheque by following these simple steps:

• Step 1: Write down the date, recipient’s name, bank account number, and the amount you wish to transfer. Please note there is a separate space for writing the amount in words and numbers.
• Step 2: As the account holder, make sure to sign the cheque in the space provided.
• Step 3: Minimise the risk of theft or fraud by crossing the cheque.
• Step 4: In case you wish to transfer funds to another bank account of yours, either drop the filled cheque in the drop box at your bank. You can also give the cheque to the bank teller for processing. Make sure to fill in the deposit slip and collect the acknowledgement.

There are generally no charges when you issue a cheque for making a payment. However, banks may charge you for the chequebook. While one chequebook is usually free every year, you may have to pay for subsequent chequebooks. It is advisable to check with your bank about these charges.

Things to Keep in Mind When You Transfer Money from One Bank to Another

Here are a few things that you should consider before choosing the mode to transfer money from one bank to another:

• Time: Identify how long it will take for the recipient to receive the funds.
• Fees: Check with your bank and take into account the processing charges involved.
• Limit: Enquire about the minimum and maximum amount that you can transfer.
• Recipient Details: Ensure you have the complete and correct information of the bank account to which you want to transfer the funds.

Evolving technology has made it easier to transfer money from one bank to another in India. Be it through NEFT, RTGS, IMPS, or UPI, sending or transferring money between banks has become increasingly convenient. Alternatively, you can also transfer money between banks by writing a cheque. Whichever method you choose, you must ensure that it suits your needs in terms of time, amount, and charges.