Banking: Latest Trends — notes

Limits and timings as of 2026; the Reserve Bank of India can revise them.

• RTGS (Real Time Gross Settlement): each transaction settled individually and immediately; minimum ₹2 lakh, no upper limit set by the RBI; available 24x7 since December 2020; used for large, urgent payments.
• NEFT (National Electronic Funds Transfer): settled in half-hourly batches (deferred net settlement); no minimum or maximum set by the RBI; available 24x7 since December 2019; used for routine payments of any size.
• IMPS (Immediate Payment Service): instant, 24x7 transfer, often by mobile, using mobile number and MMID or account number and IFSC; per-transaction limit ₹5 lakh.
• Online demand draft: a draft requested through net banking; the account is debited and the draft is issued and delivered.

To transfer funds electronically, the sender needs the payee's name, account number and IFSC (the code of the payee's bank branch).

E-banking (internet banking) is carrying out banking transactions through the internet. Features: anytime, anywhere access; self-service; instant information; secure login with password and OTP.

Advantages to customers: convenience; 24x7 access; saves time and travel; quick transfers and bill payments; easy records. Advantages to banks: lower cost per transaction; less branch crowding; wider reach; more business at little extra cost.

Disadvantages: security risks (phishing, hacking, fraud); needs devices, internet and digital skills; technical failures; impersonal service.

Safety: never share OTP, PIN or password; use only official apps and websites; keep alerts on; log out and lock devices.

Mobile banking is banking through a mobile phone, by app or SMS. Services: SMS alerts for every debit and credit; balance enquiry and mini-statement; fund transfer; bill payments and recharges.

Advantages: banking anywhere; instant alerts help detect fraud; reaches remote areas where branches are few; saves time. Disadvantages: risk if the phone is lost or unlocked; poor networks; small screens; fraud calls and messages.

ATM (Automated Teller Machine): cash withdrawal, balance enquiry, mini-statement, PIN change and, on some machines, cash deposit; available round the clock.

Debit card: linked to the holder's account; amount deducted at once; spending limited to the balance; no credit period and no interest on purchases. Credit card: spends the bank's credit up to a limit; an interest-free period if the full bill is paid by the due date; high interest on unpaid balances; may encourage overspending.

Differences: source of funds; credit period; interest; spending limit; risk of overspending.

• Digital banking: providing banking services through digital channels — internet, mobile apps, cards and UPI — instead of paper and branches.
• UPI (Unified Payments Interface): a system for instant transfers directly between bank accounts, using a UPI ID (virtual payment address), mobile number or QR code.
• E-wallet: a prepaid digital wallet; money is loaded in advance and payments are made from the stored balance.