In India, digital payments have become the norm for businesses and individuals alike. Digital payment systems such as RTGS, NEFT, IMPS, and UPI have made it easier than ever to make and receive payments quickly and securely. But too many options can be confusing sometimes. In this article, we will discuss how to process payments using these four popular payment systems.
RTGS (Real-Time Gross Settlement) is a digital payment system used for high-value transactions. To process a payment using RTGS, the sender needs to provide the recipient’s bank account details such as the account number and the bank’s IFSC code. The sender’s bank then sends a message to the recipient’s bank to credit the recipient’s account with the specified amount. The payment is processed in real-time, which means that the transfer is instantaneous and final.
NEFT (National Electronic Funds Transfer) is another digital payment system that is used for transferring funds between bank accounts. Unlike RTGS, NEFT payments are not processed in real-time. The payment is settled in batches, and the processing time can vary depending on the time of day and the volume of transactions. To make an NEFT payment, the sender needs to provide the recipient’s bank account details, including the account number and the bank’s IFSC code.
IMPS (Immediate Payment Service) is a digital payment system that enables instant fund transfers 24×7. To process an IMPS payment, both the sender and the recipient need to have registered their mobile numbers with their respective banks. The sender needs to provide the recipient’s mobile number and MMID (Mobile Money Identifier) or bank account number and IFSC code. The payment is processed in real-time, and the funds are instantly credited to the recipient’s account.
UPI (Unified Payments Interface) is a digital payment system that has become increasingly popular in recent years. UPI enables users to transfer funds between bank accounts instantly. To process a UPI payment, the sender needs to have a UPI ID or virtual payment address (VPA). The recipient also needs to have a UPI ID or VPA. The sender initiates the payment by entering the recipient’s UPI ID or VPA and the amount to be transferred. The payment is processed in real-time, and the funds are instantly credited to the recipient’s account.
In conclusion, digital payments have made it easier and faster than ever to transfer funds between bank accounts. RTGS, NEFT, IMPS, and UPI are some of the popular digital payment systems that enable quick and secure payments. To process payments using these systems, one needs to provide the necessary details such as bank account numbers, IFSC codes, and mobile numbers. By leveraging the benefits of digital payments, businesses and individuals can streamline their financial transactions and focus on their core activities.