Today, we live in a world where transactions take place online. However, we often stick to a kind or mode of transaction. But there are many different types of banking transactions that we can employ in our daily lives to do transactions. As we are speaking about the different types of banking transactions, we must also know that this also depends on the country’s economy, which keeps expanding in volume and variety. So, without any more delay, let us get to some of the different types of banking transactions. Keep reading to know more.
Banking and the Different Types of Banking Transactions:
In this section of the article, we will be talking about some of the different types of transactions that the banks offer customers in transactions of money. Pay a close look at them to know more about them.
RTGS (Real Time Gross Settlement):
This is one of the different types of banking transactions that the banks offer their customers. The process, which is followed by the RTGS mode of transaction, is just like NEFT. Here, the account will be credited to another account, and the payment cap will be different. However, it is important to know that you can use this service when the payment is about 2lakh or more. Folks, you need to keep in mind any amount of maximum limit and can transfer money of more than 2 lakhs. When you do RTGS, the money will be transferred in 30 minutes.
NEFT (National Electronic Fund Transfer):
This is another kind of transaction which the bank allows the customers to do. This is also one of the most preferred types of banking transactions, and people resort to NEFT to transfer money. All the money transferer needs to know is the account number and IFSC code. One of the safest methods of online banking is NEFT.
UPI(Unified Payment Interface):
This is one of the different types of banking transactions which is extremely popular. It is a virtual real-time system that facilitates transactions through the use of VPA(Virtual Payment Address). This is an extremely convenient way of transferring money here. you will not need to know about the account number of anybody, and all you will need to know is the UPI ID of the person you are transferring money to. Some popular UPI apps are Google Pay, Paytm, and Phonepe. Through UPI, you can transfer money 24hrs and the limit to which you can do UPI transactions is of 1 lakh. This is a great way to pay people, especially in times of emergency.
IMPS(Immediate Payment Service):
This is quite a safe type of banking option that you can use to do money transactions. Well, when you talk about IMPS, it is an instant fund transfer service that works 24*7, and it can be defined as the combination fo RTGS and NEFT. When you want to do an IMPS fund transfer, you need to know about the phone number and the IMPS ID of the person to whom you are sending money. Also, to prevent any fraud, the limit to transfer money is set quite low. Overall, this is quite a safe way of transferring money.
PoS Terminals:
These are the card readers, be it debit or credit, which are installed in all physical stores. There are different types of PoS trerminals which are Virtual PoS, Mobile PoS, and Physical Pos. When you talk about the availability, let me tell you that these are easily available but in different types of physical stores. Such as mobile PoS terminals primarily work via smartphones and tablets, and physical PoS terminals are easily available in retail outlets and shops. Here, you can easily find the PoS outlets. If you look at virtual PoS, they are web-based applications that process payments. These PoS terminals benefit small-time businesses where the owners cannot afford to invest in expensive registers. Overall, this is an economically beneficial and safe way of transacting money online,
AEPS:
Have you, folks, heard about transferring money with the help of the Aadhar card? Yes, you read that right. Aadhar card is not only for our unique identity but also helps transfer money. The Aadhar Enabled Payment System is abbreviated as AEPS. This is one of the different types of banking transactions used in all kinds of banking transactions. This includes Aadhar to Aadhar to fund transfers, payment transactions, cash withdrawals, and balance inquiries. When you choose to do AEPS, you will need to be careful as these payments are primarily done by the Aadhar verifications. Also, you won’t need to visit the bank in actuality to make a payment. Also, you will not need to provide credit cards, debit cards, or even sign a document. The only way this method of payment will work is when you hold a bank account with your Aadhar card number registered. It is a very safe and secure way of transacting money online.
Cheque:
This is a pretty common way of enabling transactions of money. This is also one of the safest payment methods and people use it often. By using a cheque, anybody can transfer money from one account to another. However, when you are carrying on transactions by using a cheque, there are no particular restrictions, but one has to keep in mind that you cannot draw more than 50,000 by using a cheque. A great feature about using a cheque is that the transaction will be completed in one day when the recipient and your bank account are the same. This is a very safe method of transferring money. We recommend this as one of the very secure and safe ways of transferring, considering other different types of banking transactions.
Payment Order:
This is another type of banking transaction that can be carried on to transactions. Here, the order is issued for sending and receiving payments within the city. When you are indulging in issuing payment orders, you need to keep in mind that it is for a very short duration, and the banks will be charging a commission when you are issuing them. Hence, this is also one of the safest methods to send money to another person.
Why Different Types of Banking Transactions are Important?
We have curated a list of different types of banking transactions that will benefit you in carrying out transactions. Not only this, we have also mentioned the features and the way each of the payment methods works. So, whenever you cannot proceed with one type of online payment, you can check out another one and complete your transaction. Money transfer is a great responsibility, especially today when online banking frauds have spiked significantly. Our advice is that you check all the requirements of different payment methods whenever you make any payment online.
Conclusion:
In this article, we have briefly discussed some of the different types of banking transactions. You can refer to these different modes of banking payments when you are looking to do transactions via the banks. That’s all, folks. I hope the article will help you in getting all the information you need.
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