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Digital Money For Digital India

Fig. 2: Adding a beneficiary account
Fig. 2: Adding a beneficiary account

Please note that minimum amount for transferring through RTGS is ` 200,000. NEFT is settled in batches at the time defined by RBI, while RTGS and IMPS are settled immediately.

Steps for using NEFT/RTGS for State Bank of India Internet banking are:
1. Login to the Internet banking account.
2. On the account page, choose Third-Party Transfer option in the drop-down list. You will be directed to Add Beneficiary link; click on it (Fig. 2). You might have to provide your security password for that.
3. On this page, add beneficiary account details in relevent fields.
4. After successful addition of beneficiary details, the bank will take 24 hours to approve payment to the beneficiary account.
5. Once approved, go to Inter Bank Transfer option under Payment/Transfer tab. Opt for RTGS, NEFT or State Bank Group.
6. On the next page provide the amount and remarks, and select the beneficiary account. Transfer can also be scheduled for a later time. After giving the required details, you can transfer the money.
7. A successful transaction message will appear if the process is successful.

State Bank of India also provides quick fund transfer option, where adding the beneficiary is not needed. You can directly provide account details and amount to transfer, and send the money. A small service charge based on a slab may be applicable while transferring money through NEFT/RTGS.

IMPS facility is provided in banks to transfer amounts up to ` 200,000 immediately, after proper registration of the beneficiary.


Unified Payment Interface (UPI) is a system that helps combine multiple bank accounts into a single mobile application. It merges all bank features and other activities in one place. UPI helps you to pay directly from a bank account to another in online and offline modes. You do not have to add any beneficiary or insert any card details or IFSC code, etc. UPI applications are available for different banks. Since you only need to share the virtual address and not any sensitive bank information, UPI is much safer and faster.

After downloading and installing the application on your smartphone, follow the steps given below:
1. Set up application login information. Your mobile phone number must be the registered number in your account.
2. In UPI registration, you have to give a unique virtual address for the account. This account address will be in the bank domain according to the installed app. You can select the bank in which you have the account.
3. Enter other details and submit after accepting the terms and conditions.
4. After registration, create a password to login to the application.
5. Set up a UPI PIN. For this, select your options, and a one-time password will be sent to your registered mobile number. Using this password, you can create your UPI PIN (MPIN). After necessary setups, you can transfer money using this method to any bank account.
6. In UPI app (for example, SBI Pay) it is possible to pay through UPI or bank account method. If you choose UPI, you need to enter your UPI virtual address and details. For bank account transfer, you need to enter account number, IFSC code, payee name, etc.
7. While transferring using UPI, once you enter the virtual address, all other details will get automatically filled in various fields. You will be guided to security MPIN entry, and the transaction will be complete.

Note that, to transfer money through UPI, your bank must support UPI. Most major banks support it, including State Bank of India, Canara Bank, ICICI, UCO Bank, Federal Bank and Punjab National Bank.

BHIM app

Bharat Interface for Money or BHIM (Fig. 3), is a common application for all banks and financial institutions. The app does not require an Internet connection, so it can also work on feature phones. An Aadhaar based payment system will be added soon. After that, for transactions, BHIM will not even need a mobile phone or the Internet; thumb impression would be enough.

Fig. 3: BHIM app screenshots
Fig. 3: BHIM app screenshots

BHIM has features like linking bank accounts, sending and receiving money, profile saving, adding beneficiaries, changing languages and balance enquiry. Banks supporting UPI are already supporting BHIM app, and there will be more banks supporting it soon.
Steps for using BHIM are the same as UPI. You can use the existing UPI account for BHIM app.

USSD based mobile banking

Until now you saw applications and methods, except in case of BHIM, that needed at least a smartphone and Internet connectivity. But there are times when you do not have access to the Internet or even a smartphone, and that is when USSD based mobile banking can come to your rescue.

Fig. 4: Option screen for USSD
Fig. 4: Option screen for USSD


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