What is NEFT – RTGS – IMPS – UPI and MMID – Explained – Easily

What is NEFT – RTGS – IMPS – UPI and MMID – Explained – Easily

What is NEFT – RTGS – IMPS – UPI and MMID this is what I am going to explain you easily.

In India there are many ways payments can be transferred from one account to another, every payment system has some advantage and some disadvantage.

Mainly four types of payment system is used in India and is available for normal users. I am going to discuss all four and will try to show you some examples as well in this regard so that you can better understand it in normal language. I have seen people does not know when to use each one.

NEFT - RTGS - IMPS - UPI and MMID

National Electronic Funds Transfer (NEFT) System

Started in 2005, a one to one money transfer service by RBI for individuals and corporates. Available during certain hours. Provides a batch settlement of transactions at hourly intervals thus enabling near real-time transfer of funds.

Transaction Timings for NEFT, Monday to Saturday (Except 2nd and 4th Saturday) is 8:00 AM to 6:30 PM.
As from 2013, all transactions initiated before 5 PM will be settled on same day.
No transactions are settled on weekly holidays and public holidays.

NEFT - RTGS - IMPS - UPI and MMID

Real Time Gross Settlement (RTGS) System

This payment system was introduced in 2004 by RBI. This is a money transfer systems where transfer of money takes place from one bank to another on a “real time” and on “gross” basis. “Real Time” means there is no waiting period.

Gross” basis means the transactions are settle down on individual basis not on batch basis like NEFT. Once processed, payments are final and irrevocable. It settles all inter-bank payments and customer transactions above ₹ 2 lakh.

Customers can access the RTGS facility between 9 am to 4:30 pm (Interbank up to 6:30 pm) on weekdays and 9 am to 2:00 pm (Interbank up to 3:00 pm) on Saturdays.

NEFT - RTGS - IMPS - UPI and MMID

Immediate Payment Service (IMPS)

This service was publicly launched on Nov 22,2010. This is an instant real-time inter-bank electronic funds transfer system of India. IMPS offers an inter-bank electronic fund transfer service through mobile phones. Unlike NEFT and RTGS, the service is available 24x7x365 throughout the year including bank holidays.

It is managed by the National Payments Corporation of India (NPCI).
Th transaction is done using MMID(Mobile Money Identifier – 7 digit numeric code) which can be generated easily by your mobile which is linked to your account from which you want the transaction to happen and the steps required to generate the MMID you can check with your concerned bank.

However now a days some banks even provide IMPS using IFSC and Account number information. To initiate the transaction, the sender in his mobile banking application need to enter the registered mobile number of the receiver, MMID of the receiver and amount to be transferred. Upon successful transaction, the money gets credited in the account of the receiver instantly.

Transaction timings and charges of ICICI

 Note: However the charges for NEFT\IMPS\RTGS are different for different banks, you will have to check your bank website for this. 

NEFT - RTGS - IMPS - UPI and MMID

United Payments Interface(UPI)

UPI is a future of payments of india. The transactions can be done easily anytime using a virtual ID which you need to create and link it with your savings\credit account for the one you want.
You can create virtual ID from the bank app on which you have your accounts, also the mobile number registration with your account is very much required.

A complete video I have created to show you what is UPI and how to use it on daily basis for payments. The money is transferred from one account to another instantly.

Please watch the complete video for proper understanding.

If you like my video please make me happy by sharing on social media and subscribing my YouTube Channel.

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