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We have various methods to do online money transfer. Which one do you think is fast, convenient and safe? I do frequent transfers to my family and friends too.
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NEFT, National Electronic Fund Transfer, is highly used, in terms of number of transactions, method of transfering money in India across the banks. NEFT is not immediate. All the transactions are queued up and executed (transferred) by RBI every 1 hours during working ours. If you do two NEFT transactions, it is not guaranteed which transaction will happen first. So, if you transfer from Bank-A to Bank-B    (transaction 1) and your friend transfers from Bank-B to Bank-C, it is not guaranteed which one happens first. If account in Bank-B has no balance, few trasferes can even bounce.

Because of this reason, most banks deduct the amout from your account balance and credit it to RBI's account immediately as you initiate an NEFT, eventhough the real-transfer occurs after an hour or so.

But, if you are transfering money within the bank, say - SBI to SBI, but to someone else's SBI account, you can use inhouse (intra-bank) money transfer, which is quick, safe and no transfer charges. It is so quicky that the money gets transfered at real time, ie., it takes less than a second.

NEFT and RTGS are chargeable as per RBI, but most banks, like Citibank, HSBC, ICICI bank, Axis bank do not charge for NEFT, while SBI has nominal charge of Rs 5/- as of 2013.

NEFT has a limit of Rs. 200,000/-. For higher amounts RTGS is the only option. RTGS stands for real-time gross settlement and is very similar to NEFT in terms of technology, except that RTGS happens in no time, in a matter of few milli-seconds. I am not sure, RTGS limit should be around Rs 1 crore, or even more.

NEFT and RTGS both are safe, if you enter the account number carefully. If you enter a wrong account number, especially if you enter the last few digits of the account number wrong, it is highly possible that the account exists and the amount gets transferred to the wrongly entered accont number. This is the reason why, many banks asks us to enter the account number twice, just like changing your password, so that it is unlikely that you enter same-wrong-account-numbers in both the fields.

IMPS stands for Immediate Payment Serivice and is secure and safe. IMPS is not offerred by all the banks in India as of now. IMPS transfer generally requires a mobile number and a per account generated IMPS number - which could be a 10 digit  number. The advantage with IMPS is its annonimity and privacy. You do not have to know the name of the account holder nor their account number.


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Not all banks in India are supporting IMPS, though Reserve Bank of India wanted it so. 

Below are the list of Banks support IMPS.

The first list contains banks supporting IMPS through A/c number nad IFSC and the second list is though mobile number. 


IMPS through Account number and IFSC code
Below banks support IMPS thorough a/c number and IFSC code. 
1  State bank of India 
2  Dombivli Nagari Sahakari Bank 
3  The Greater Bombay Co-op Bank 
4  Tamilnad Mercantile Bank 
5  A P Mahesh Co-op Urban Bank 
6  Indian Bank 
7  Bank of Baroda 
8  Yes Bank 
9  Saraswat Co-operative Bank 
10  State Bank of Hyderabad 
11  BNP Paribas 
12  Federal Bank 
13  Axis Bank 
14  Corporation Bank 
15  IDBI Bank 
16  Punjab and Maharashtra Co-op bank 
17  The Thane Janata Sahakari Bank Ltd 
18  Bassein Catholic Co-operative Bank 
19  Jammu and Kashmir Bank 
20  Union Bank of India 
21  The Cosmos Co-operative Bank 
22  United bank of India 
23  The Mehsana Urban Cooperative Bank 
24  Janata Sahakari Bank Ltd. , Pune 
25  Dena Bank 
26  ICICI Bank 
27  HSBC Bank 
28  Kotak Mahindra Bank (as beneficiary) 
29  Development Bank of Singapore (DBS) as Beneficiary 
30  NKGSB Co-op Bank 
31  IndusInd Bank Ltd 
32  Punjab National Bank 
33  Bank of India 
34  South India Bank Ltd 
IMPS using Mobile Number and MMID  -- -supported banks
Below banks support IMPS using MMID
1  A P Mahesh Co-op Urban Bank 
2  Allahabad Bank 
3  Andhra Bank 
4  Axis Bank 
5  Bank of Baroda 
6  Bank of India 
7  Bank of Maharashtra 
8  Canara Bank 
9  Catholic Syrian Bank 
10  Central Bank Of India 
11  Citi Bank 
12  Corporation Bank 
13  Dena Bank 
14  Development Credit Bank 
15  Dhanlaxmi Bank 
16  Dombivali Nagari Sahakari Bank 
17  Federal Bank 
18  Greater Bombay Co-operative Bank 
19  HDFC Bank 
20  ICICI Bank 
21  IDBI Bank 
22  Indian Bank 
23  Indian Overseas Bank 
24  IndusInd Bank 
25  ING Vysya Bank 
26  Janata Sahakari Bank Pune 
27  Karnataka Bank 
28  Karur Vysya Bank 
29  Kotak Mahindra Bank 
30  Lakshmi Vilas Bank 
31  Oriental Bank of Commerce 
32  Punjab & Maharashtra Co-op Bank 
33  Punjab National Bank 
34  South Indian Bank 
35  Standard Chartered Bank 
36  State Bank of Bikaner & Jaipur 
37  State Bank of Hyderabad 
38  State Bank of India 
39  State Bank of Mysore 
40  State Bank of Patiala 
41 State Bank of Travancore
42  Syndicate Bank
43 Tamilnad Mercantile Bank
44 The Hongkong And Shanghai Banking Corporation Limited, India (HSBC India)
45 The Thane Janata Sahakari Bank
46 UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank
Yes Bank
Saraswat Bank
BNP Paribas
Bassein Catholic Cooperative bank
Jammu and Kashmir Bank
The Cosmos Co-operative Bank
The Mehsana Urban Co-operative Bank
NKGSB Co-operative Bank