Types of E-Payments - PKC Management Consulting

E- PAYMENT

Simply, the payments that are made through online are known as E-Payment.
Here, both payer and payee will be using the Digital mode for the purpose of payment and receipt of money.
It is one of the most instant and convenient modes of Payments.
It can also be called Digital Payments.

Types of E-Payments:

1.Real Time Gross Settlement(RTGS)

2.Net Electronic Fund Transfer(NEFT)

3.Immediate Payment System(IMPS)

4.Unified Payments Interface(UPI)

5.Aadhar Enabled Payment Service(AEPS)

6.Mobile Wallets

7.Debit Cards

8.Credit Cards

9.E-Wallets

What is REAL TIME GROSS SETTLEMENT and its features?

RTGS or Real Time Gross Settlement is an electronic method to transfer money from one bank to another bank on a real-time or gross basis within the country.
The term Real-Time means that the Payment is made instantly without any delay and may take around 30 minutes from receiving the request for remittance of funds.
The Gross Settlement means the money is transferred on one to one basis.

2. NATIONAL ELECTRONIC FUND TRANSFER:

NEFT is a one-to-one payment facility that is regulated by the Reserve Bank of India across various public and private sector banks.
As per NEFT, one can transfer funds to another individual with an account in a different bank. However, to enable this facility, the concerned bank accounts must be NEFT-enabled.
The payments as per the NEFT are processed and settled in half-hourly batches.

How to transfer the Funds via NEFT?

Who can make NEFT Transactions?

Any Account Holder can make NEFT transfers i.e., Individuals, Firms, Corporates but this can be done when the user’s Bank is NEFT-Enabled Bank.
In NEFT, the transaction Amount limit should be Rs.50000/-.

What is the NEFT transfer limit?

There should be no restrictions on the Maximum and Minimum amount transfer through NEFT.
But However while making the Cash Deposit the Amount should not be more than Rs.50000/-.

What are the benefits that we get through NEFT?

Transferring funds through electronic mode is time saving and convenient.
NEFT payments are solely electronic.
The payment method is safe and encrypted with firewalled gateways. Thus, safety from frauds and thieves.
Instant confirmation of transfer of funds to both the sender and the receiver.
NEFT dismantled the use of Cheques and Demand Drafts for the transfer of funds; thus, it is economical.

What is the Fee charged for the NEFT Transactions?

Amount ≤ ₹.10000 – ₹.2.5/- + applicable GST
10000 < Amount ≤ 100000 – ₹.5/- + applicable GST
100000 < Amount ≤ 200000- ₹.15/- + applicable GST
Amount >200000 – ₹.25/- + applicable GST.

3. IMMEDIATE PAYMENT SERVICE:

It is a real-time electronic fund transfer facility like NEFT or RTGS. IMPS service is convenient since it is quick, paperless and does not require one to have a detailed information related bank account to transfer funds.
To avail the IMPS facility, one is required to have the beneficiary’s mobile number linked to the bank account and the MMID. The IMPS payments can be made 24/7 and 365 days in a year.
Thus, there is no disparity or hindrance in transferring funds with IMPS even during bank or public holidays.

How to transfer Funds through IMPS?

Do the transactions are restricted on a timely basis?

The timings for the IMPS transactions are 24/7
But in some cases, to reduce and prevent the frauds, many banks tend to allow the IMPS transfers for 12 hours i.e., 8am to 8 pm.

Is there any restriction on the amount that can be transferred?

IMPS Maximum Limit per transaction is Rs.2lakh. Multiple transactions may be permissible depending upon your bank and IMPS Limits approved.

What is the fee that will be charged per transaction?

Amount ≤ 10000- ₹.2.5/- + applicable GST
10000 < Amount ≤ 100000 – ₹.5/- + applicable GST
100000 < Amount ≤ 200000 – ₹.15/- + applicable GST
Amount > 200000 – ₹.25/- + applicable GST.

What are the main differences between RTGS, IMPS and NEFT?

Basis of Comparison	NEFT	RTGS	IMPS
Minimum Transfer Value	Rs.1	Rs.200000	Rs.1
Payment Options	Online and Offline	Online and Offline	Online
Maximum Transfer Amount	NA	NA	Rs.200000
Fund transfer Speed	2 Hours(subject to cut off timings and batches)	Immediate	Immediate
Settlement Type	Half hourly basis	Real Time	Real Time
Service timings	8am to 7pm on working days(except on 2^nd and 4^th Saturday)	8am to 6pm on working days	Available 365 days and 24*7
Inward transaction charges	No charges	No charges	Decided by Individual Member Bank PPIs
Managed by	RBI	RBI	NPCI

4. UNIFIED PAYMENTS INTERFACE:

It is a system that powers multiple bank accounts (of participating banks), several banking services like fund transfer and merchant payments in a single mobile application.

Ex: BHIM, SBI UPI app, HDFC UPI app, etc.

UPI is a single platform that merges various banking services and features under one umbrella. A UPI ID and PIN are sufficient to send and receive money. Real-time bank-to-bank payments can be made using a mobile number or virtual payment address (UPI ID).

Who initiated UPI?

UPI is an initiative taken by the National Payments Corporation of India (NPCI) together with the Reserve Bank of India and Indian Banks Association (IBA). NPCI is the firm that handles Ru-Pay payments infrastructure, i.e. similar to Visa and MasterCard. It allows different banks to interconnect and transfer funds. UPI is considered as the advanced version of IMPS.

What is UPI ID and PIN?

A UPI ID is a unique identification for a bank account that can be used to send and receive funds. UPI PIN is a 4-digit personal identification number that must be entered to authorize the transfer of money via UPI. The PIN can be chosen by the account holder.

5. AADHAAR ENABLED PAYMENT SYSTEM:

It is an Aadhar based digital payment mode.
Customers need only their Aadhar number to pay to any merchant.
It allows banks to bank transactions. customers will need to link their Aadhaar numbers to their bank accounts.

6. MOBILE WALLETS:

It is a Virtual wallet that stores payment card information on a Mobile Device.
They provide convenient ways to use Store-Payments.

7. E-WALLETS:

E-wallet/ mobile wallet is the digital version of physical wallet with more functionality.
User can keep his/her money in an e-wallet and use it when he needs.

8. DEBIT CARDS: