IMPS, NEFT, RTGS and UPI

IMPS, NEFT, and RTGS are all electronic funds transfer systems used in India, but they differ in several key aspects:

1. IMPS (Immediate Payment Service):

   - Speed: 

IMPS allows for instant funds transfer, 24/7, including weekends and holidays.

   - Transaction Limit:

 Initially, IMPS had a cap on the amount you could transfer in a single transaction, but this limit has been increased over time.

   - Usage:

IMPS is widely used for small to medium-sized transactions, including person-to-person (P2P), person-to-merchant (P2M), and merchant-to-person (M2P) transfers.

2. NEFT (National Electronic Funds Transfer):

   - Speed:

 NEFT operates in hourly batches, with specific timings on weekdays and Saturdays (excluding holidays).

   - Transaction Limit:

NEFT typically allows for higher transaction amounts compared to IMPS. However, these limits may vary depending on the bank.

   - Usage:

 NEFT is commonly used for medium to large-sized transactions, and it is well-suited for non-urgent fund transfers.

3. RTGS (Real Time Gross Settlement):

   - Speed:

RTGS provides real-time settlement of funds, meaning the transfer is instantaneous and final.

   - Transaction Limit:

RTGS is primarily used for high-value transactions, with a significant minimum threshold and no upper limit.

   - Usage:

 RTGS is typically used for large transactions like property purchases, business payments, and high-value investments.

In summary, the main differences lie in transaction speed, limits, and purpose. IMPS is the quickest and most flexible, suitable for smaller transactions. NEFT is scheduled and appropriate for medium to large transactions that aren't time-sensitive. RTGS is the fastest and is reserved for very high-value transactions that require immediate settlement. Keep in mind that specific details and features may vary between different banks and may be subject to change after my last training data in September 2021.

Specifications of IMPS 

IMPS (Immediate Payment Service) is an electronic fund transfer system used in India. Here are some key specifications of IMPS:

1. Instantaneous Transactions:

 IMPS allows for instant, real-time funds transfer between participating banks and financial institutions.

2. Availability:

   - IMPS operates 24/7, including weekends and holidays. This means you can make transfers at any time of the day.

3. Transaction Types:

   - IMPS supports various types of transactions, including person-to-person (P2P), person-to-merchant (P2M), and merchant-to-person (M2P) transfers.

4. Transaction Limits:

   - Initially, IMPS had a transaction limit. However, over time, many banks have increased this limit. The specific limits can vary depending on the bank's policies.

5. Channels of Access:

   - IMPS can be accessed through multiple channels, including mobile banking apps, internet banking, ATMs, and even through bank branches.

6. Recipient Information:

   - To initiate an IMPS transfer, you typically need the recipient's Mobile Number and/or MMID (Mobile Money Identifier), Account Number, and IFSC (Indian Financial System Code) of the receiving bank branch.

7. Service Charges:

   - IMPS transactions may have associated service charges, which can vary depending on the bank and the type of account you hold.

8. Confirmation and Alerts:

   - Both the sender and the recipient receive instant confirmation of the transaction, providing a high level of transparency.

9. Use Cases:

   - IMPS is widely used for various purposes including sending money to friends and family, making utility bill payments, online shopping, and more.

10. Security Measures:

    - IMPS transactions are secured through multi-factor authentication, including the use of MPIN (Mobile Personal Identification Number).

11. Cross-Border Transactions:

    - IMPS is primarily designed for domestic transfers within India and does not support cross-border transactions.

Remember that specific details, such as transaction limits, charges, and availability, may vary between different banks. It's always advisable to check with your respective bank for the most accurate and up-to-date information.

Does it verifies recipient before initiating payments?

IMPS (Immediate Payment Service) relies on certain information provided by the sender to process a transaction, but it doesn't directly verify the recipient in the same way it verifies the sender.

To initiate an IMPS transaction, you typically need to provide the recipient's Mobile Number and/or MMID (Mobile Money Identifier), Account Number, and IFSC (Indian Financial System Code) of the receiving bank branch.

However, the responsibility of ensuring the accuracy of this information lies with the sender. It's important for the sender to double-check and confirm the recipient's details before proceeding with the transaction.

In case there is a mistake in the recipient's information, it might lead to the funds being transferred to the wrong account. Therefore, it's crucial to exercise caution and verify recipient details before initiating any payment through IMPS or any other electronic fund transfer system. If there are any doubts or uncertainties, it's best to contact your bank for guidance.

Which security parameter is employed during txn?

During an IMPS (Immediate Payment Service) transaction, several security parameters are employed to ensure the safety and authenticity of the transaction. These include:

1. MPIN (Mobile Personal Identification Number):

   - MPIN is a secret, numeric code that serves as a second-level authentication for IMPS transactions. It's known only to the account holder and is used to authorize the transfer.

2. Authentication through Mobile Banking App or Internet Banking:

   - IMPS transactions are typically initiated through a secure mobile banking app or internet banking platform provided by the bank. These platforms use encryption protocols to secure the communication.

3. Recipient Information Verification:

   - Before initiating a transaction, the sender must provide accurate recipient details, including the Mobile Number and/or MMID, Account Number, and IFSC code. It's the sender's responsibility to ensure the accuracy of this information.

4. Transaction Limits:

   - Banks often set transaction limits to mitigate risks. These limits may vary depending on the bank and the type of account.

5. Secure Communication Channels:

   - IMPS transactions are conducted over secure communication channels to protect the data exchanged between the sender, recipient, and the banks involved.

6. Confirmation and Alerts:

   - Both the sender and the recipient receive instant confirmation of the transaction, providing transparency and allowing for quick detection of any unauthorized activity.

7. Secure Servers and Infrastructure:

   - Banks employ robust security measures to protect their servers and infrastructure against cyber threats and unauthorized access.

8. Fraud Detection and Monitoring:

   - Banks have systems in place to monitor transactions for suspicious activity or patterns that may indicate fraudulent behavior.

9. Two-Factor Authentication (2FA):

   - In addition to MPIN, some banks may implement additional layers of authentication for IMPS transactions, such as OTPs (One Time Passwords) sent via SMS.

10. Biometric Verification (in some cases):

    - Some banks may offer biometric verification methods, like fingerprints or facial recognition, for added security during transactions.

It's important to note that the specific security measures may vary slightly between different banks. Additionally, account holders are advised to follow best practices for online security, such as regularly updating passwords, not sharing sensitive information, and keeping their devices secure.

Does it has AES256 AND TLS?

IMPS (Immediate Payment Service) transactions often utilize AES256 encryption and TLS (Transport Layer Security) protocols to ensure the security and confidentiality of data during transmission.

AES256 (Advanced Encryption Standard with a key size of 256 bits) is a widely used encryption algorithm that provides a high level of security. It is used to encrypt the data before it is sent over the network, making it extremely difficult for unauthorized parties to intercept or decipher the information.

TLS is a cryptographic protocol that establishes a secure communication channel between a client (such as a mobile app or web browser) and a server. It ensures that the data exchanged between them remains confidential and cannot be tampered with during transit.

Together, AES256 and TLS work in tandem to safeguard the integrity and privacy of IMPS transactions, making it a secure method for electronic fund transfers. Keep in mind that the specific implementation and security measures may vary slightly between different banks and financial institutions.

Specifications of NEFT?

NEFT (National Electronic Funds Transfer) is an electronic funds transfer system used in India. Here are some key specifications of NEFT:

1. Transaction Timings:

   - NEFT operates in hourly batches on working days (Monday to Saturday) excluding 2nd and 4th Saturdays, Sundays, and bank holidays.

2. Transaction Limits:

   - NEFT typically allows for higher transaction amounts compared to IMPS. However, these limits may vary depending on the bank.

3. Settlement Timings:

   - The transactions settled in NEFT are processed in batches and take place throughout the day during the working hours of the RBI (Reserve Bank of India).

4. Availability:

   - NEFT is not available 24/7. It's only available during specific time slots on working days.

5. Use Cases:

   - NEFT is commonly used for various purposes, including salary payments, vendor payments, and other non-urgent fund transfers.

6. Transaction Charges:

   - Banks may charge a nominal fee for NEFT transactions, although some banks may offer NEFT services for free, especially for specific account types.

7. Channels of Access:

   - NEFT can be initiated through various channels, including online banking, mobile banking apps, ATM kiosks, and even through bank branches.

8. Recipient Information:

   - To initiate a NEFT transfer, you need the recipient's Account Number, IFSC (Indian Financial System Code) of the receiving bank branch, and the name of the account holder.

9. Security Measures:

   - NEFT transactions are secured through the bank's secure online banking platforms, which utilize encryption protocols and authentication methods.

10. Transaction Reversal:

    - NEFT transactions can be reversed if there is a discrepancy or error, but this process is subject to the specific policies of the respective bank.

11. Cross-Border Transactions:

    - NEFT is a domestic funds transfer system and cannot be used for cross-border transactions.

Remember that specific details, such as transaction limits and charges, may vary between different banks. It's always advisable to check with your respective bank for the most accurate and up-to-date information.

Does NEFT verifies recipient before initiating payments?

Yes, NEFT (National Electronic Funds Transfer) requires the sender to provide accurate recipient details before initiating a transaction. This verification process is crucial in ensuring that the funds are transferred to the intended recipient.

To initiate an NEFT transaction, the sender typically needs to provide the following information about the recipient:

1. Account Number: This is the unique identification number associated with the recipient's bank account.

2. IFSC (Indian Financial System Code): This is a unique code assigned to each bank branch in India. It helps identify the specific branch where the recipient holds their account.

3. Recipient's Name: The full and correct name of the account holder is important to ensure that the funds are directed to the correct account.

It's the responsibility of the sender to verify and double-check this information before proceeding with the NEFT transaction. Providing accurate recipient details helps prevent any unintended or erroneous transfers.

However, it's worth noting that while NEFT does have this verification process, it's always advisable for senders to exercise caution and confirm recipient details independently to avoid any potential mistakes. If there are any doubts or uncertainties, it's best to contact your bank for guidance.

NEFT (National Electronic Funds Transfer) primarily relies on the information provided by the sender to process a transaction. The system itself doesn't independently verify the recipient's details.

Instead, NEFT relies on the accuracy and completeness of the information provided by the sender. This includes the recipient's Account Number, IFSC (Indian Financial System Code), and the recipient's full name.

While the NEFT system itself does not perform independent verification, it's important for the sender to ensure that all recipient details are accurate before initiating a transaction. This helps prevent the possibility of funds being directed to the wrong account.

If there is a discrepancy or mistake in the recipient's information, it's typically up to the sender and the respective banks involved to rectify the situation through appropriate channels. Always exercise caution and double-check recipient details before proceeding with any financial transaction. If in doubt, contact your bank for guidance.

Specifications of RTGS

RTGS (Real Time Gross Settlement) is an electronic funds transfer system used in India. Here are some key specifications of RTGS:

1. Transaction Speed:

   - RTGS provides real-time settlement of funds, meaning the transfer is instantaneous and final.

2. Transaction Limits:

   - RTGS is primarily used for high-value transactions. There is usually a significant minimum threshold for transactions, and there is no upper limit.

3. Availability:

   - RTGS is available on all working days of banks (Monday to Friday) and on Saturdays (except the second and fourth Saturdays) within the time frame specified by the Reserve Bank of India (RBI).

4. Settlement Timings:

   - The settlement process in RTGS is continuous and takes place throughout the working hours of the RBI.

5. Use Cases:

   - RTGS is typically used for large transactions like property purchases, business payments, high-value investments, and other situations where immediate settlement is crucial.

6. Transaction Charges:

   - Banks may charge a fee for RTGS transactions, which can vary depending on the bank and the type of account.

7. Channels of Access:

   - RTGS transactions can be initiated through various channels, including online banking, mobile banking apps, and in some cases, through bank branches.

8.*. Recipient Information:

   - To initiate an RTGS transfer, you need the recipient's Account Number, IFSC (Indian Financial System Code) of the receiving bank branch, and the name of the account holder.

9. Security Measures:

   - RTGS transactions are secured through the bank's secure online banking platforms, which utilize encryption protocols and authentication methods.

10. Confirmation and Alerts:

    - Both the sender and the recipient receive instant confirmation of the transaction, providing transparency and allowing for quick detection of any unauthorized activity.

11. Cross-Border Transactions:

    - RTGS is a domestic funds transfer system and cannot be used for international transactions.

It's important to note that specific details, such as transaction limits and charges, may vary between different banks. Always consult your respective bank for the most accurate and up-to-date information regarding RTGS transactions.

Does RTGS , IMPS and NEFT works 24x7 or only in business days and hours?

Here's the availability of RTGS, IMPS, and NEFT:

1. RTGS (Real Time Gross Settlement):

   - RTGS operates on all working days of banks (Monday to Friday) and on Saturdays (except the second and fourth Saturdays) within the time frame specified by the Reserve Bank of India (RBI). It is not available on Sundays and bank holidays.

2. IMPS (Immediate Payment Service):

   - IMPS operates 24/7, including weekends and holidays. This means you can make transfers at any time of the day.

3. NEFT (National Electronic Funds Transfer):

   - NEFT operates in hourly batches on working days (Monday to Saturday) excluding 2nd and 4th Saturdays, Sundays, and bank holidays.

Keep in mind that these details are based on information available up until September 2021, and there may have been updates or changes after that time. Always consult your respective bank or check official sources for the most current information regarding the availability of these services.

We can not initiate txns instantly through RTGS. Firstly we have to add it in beneficiary and we have wait for hours?

In order to initiate a transaction through RTGS (Real Time Gross Settlement), you typically need to add the recipient as a beneficiary in your account. This process involves providing details like the recipient's account number, IFSC code, and other necessary information. 

Once the beneficiary is added, there might be a waiting period before you can initiate an RTGS transaction to that account. This waiting period can vary from bank to bank and is a security measure to ensure that the details provided are accurate and have been verified.

During this waiting period, the bank may conduct internal checks and validations to confirm the legitimacy of the beneficiary. Once the beneficiary is approved, you can then proceed with initiating an RTGS transaction to that account.

This additional step is in place to enhance the security of RTGS transactions and reduce the risk of unauthorized or erroneous transfers. It's important to note that this process may not be instant and may involve a waiting period, as you've mentioned.

The process of adding a beneficiary and waiting for approval before initiating a transaction, especially in systems like RTGS (Real Time Gross Settlement), serves several important purposes:

1. Security and Fraud Prevention:

   - Verifying and adding beneficiaries helps prevent unauthorized or fraudulent transactions. It ensures that you are sending funds to the correct and legitimate recipient.

2. Accuracy of Details:

   - By adding a beneficiary, you are providing the bank with detailed information about the recipient, including their account number and IFSC code. This allows the bank to perform additional checks to confirm the accuracy of the provided details.

3. Reducing Errors:

   - This process helps reduce the likelihood of errors in transaction details, such as incorrect account numbers or IFSC codes. It allows the bank to cross-verify and validate the information.

4. Compliance and Regulation:

   - Financial institutions are required to follow regulatory guidelines and standards to ensure the integrity and security of financial transactions. Adding beneficiaries and waiting for approval helps banks comply with these regulations.

5. Risk Management:

   - The waiting period serves as a risk management measure. It allows the bank to conduct internal checks and validations to identify and prevent potentially suspicious or high-risk transactions.

6. Customer Protection:

   - This process ultimately protects the account holder. It adds an extra layer of security to ensure that their funds are being transferred to the correct and authorized recipient.

While this waiting period may seem inconvenient, it plays a crucial role in safeguarding the integrity of electronic fund transfers, especially for high-value transactions like those processed through RTGS. It's a measure put in place to balance speed and convenience with security and accuracy.

Are more transaction methods instead of UPI, IMPS, RTGS and NEFT?

Yes, there are several other electronic fund transfer methods available, in addition to UPI (Unified Payments Interface), IMPS (Immediate Payment Service), RTGS (Real Time Gross Settlement), and NEFT (National Electronic Funds Transfer). Here are a few notable ones:

1. BHIM (Bharat Interface for Money):

   - BHIM is a mobile app developed by the National Payments Corporation of India (NPCI) that allows for easy and secure transactions using UPI.

2. UPI 2.0:

   - UPI 2.0 is an upgraded version of UPI that introduced additional features like overdraft facility, one-time mandates for transactions, and invoice in the inbox.

3. NACH (National Automated Clearing House):

   - NACH is a centralized system that facilitates bulk payments and receipts that are repetitive and periodic in nature. It's often used for services like salary payments, dividend payments, etc.

4. Aadhaar Enabled Payment System (AEPS):

   - AEPS allows bank account holders to carry out banking transactions using their Aadhaar number and fingerprint/iris scan for authentication.

5. IMPS Merchant Payments:

   - IMPS can also be used for merchant payments where individuals can pay for goods and services at registered merchants.

6. Immediate Payment Service for Fund Transfer using Mobile Number and MMID:**

   - This is an extension of IMPS where you can transfer funds using just the recipient's mobile number and MMID (Mobile Money Identifier) without the need for their bank accounist details.

7. Cheque Truncation System (CTS):

   - CTS  a process of stopping the physical movement of cheques in the clearing cycle and substituting them with electronic images.

8. Mobile Wallets:

   - Various mobile wallet services like Paytm, PhonePe, and Google Pay allow users to store money digitally and make payments for various services and purchases.

9. SWIFT (Society for Worldwide Interbank Financial Telecommunication):

   - SWIFT is a global network for secure financial messaging that facilitates international fund transfers between financial institutions.

10. Digital Payment Apps (Other than UPI):

    - There are various digital payment apps available in the market, each with its own features and capabilities, such as PayPal, Venmo, Cash App, etc. These are used for a wide range of transactions including online shopping, peer-to-peer payments, and more.

These are just some of the electronic fund transfer methods available. The choice of method depends on factors like transaction amount, urgency, convenience, and the specific requirements of the sender and recipient. Keep in mind that the availability and features of these methods may evolve over time, so it's a good idea to stay updated with the latest offerings from financial institutions and payment service providers.