Unit V: Electronic Banking – Meaning – Benefits- Internet Banking – Mobile

Banking – E.Payments – RTGS – NEFT – UPI Payments – ATM Cards –

Biometric Cards – Debit, Credit, Smart Cards and ECS- E. Money –Electronic
Purse – Digital Cash

ATM: Meaning, Facilities, Advantages & Limitations

Meaning: ATM is the automation of the Teller. An ATM is an electronic cash
providing and accepting machine. These machines are installed to provide access to
cash to the bank customers any time of the day. One need not worry about the
working hours of the bank. It is a self service counter open 24 hours a day for 365
days of the year. A customer who wishes to avail of the ATM facility has to maintain
certain minimum balance. There is maximum limit on withdrawal.
The customer is issued with the ATM card. It has a Personal Identification
Number (PIN) which is known only to the customer. The customer first inserts the
card in the slot. The machine examines the genuineness of the card and the door is
opened automatically. After that, the customer presses the keys of his PIN and the
required cash flows out. The ATM also accepts cheques and cash deposits. They
may be installed at shopping centres, airports, railway stations or located within
bank premises. The ATM requires currency notes which are not folded and can
move easily in a machine. The ATM supplies notes of certain denominations only.

Facilities:
In the automated teller machine facility following points to be considered:
a) ATM Machine: ATM is terminal of the bank’s computer which can be operated
by the customer himself for withdrawal, deposits of cash, balance enquiries,
transfer of funds, statements of accounts round the clock.
b) Video Screen: The terminal is coupled with a video screen. It has also a cash
dispenser which gives currency notes as per instruction of the computer.
c) ATM Card: The customer is supplied with an ATM card. It has MICR coding by
which computer identifies the customer. Besides this, the customer is given his
secret personal identification number (PIN). He can operate the computer by
inserting the card in the slot of ATM window and then giving his identification
number.
d) PIN: PIN is given by the computer while operating the account and even Bank
staff does not know this number.
e) Terms and Conditions about Withdrawal: The ATM card provides the term
and conditions of operation like maximum withdrawal per transaction per day, the
maximum balance to be maintained, etc. compared with credit card, an ATM card is
a debit card.

Advantages:
The advantages of automated teller machine services are as follows:
a) 24 Hours Availability: Service is available 24 hours a day and seven
days a week.
b) Convenient Place: It can be placed in convenient off branch locations
like shops, factories, offices.
c) Privacy of Operation: It ensures privacy of operation through self-
service.
d) No Need of RBI’s Permission: Banks need not obtain RBI’s permission
for installing ATMs in their branches/ extension counters.
e) No Time Limit for Transaction: One can do the transaction while going
to office or while returning home or while going to shopping or on holidays. The
choice of time is unlimited.
f) Quick and Efficient Service: automated teller machine offers quick and
efficient service. It is professional service. Since the machine is programmed and
many driven the customer knows how to operate the ATM in simple specified steps
and no time is wasted.
g) Fixed Response to Customer: Response of automated teller machine to
customer is fixed. The ways the transactions are to be carried out in logical steps
are programmed. Further, the operation is to be carried out within specific time
limit. If the customer does not respond within that time, the transaction is aborted.
This time limit is pre-set by the bank

Limitations:
The limitations of ATM are as follows:
 a) Limitation on Withdrawals: Cash withdrawals for large amount are not
permitted. It is restricted by the amount fixed for the card.
  b) Restriction on Cash Dispensations: Cash dispensations are generally
restricted to certain denominations of currency. As such, withdrawals are to
be made only in certain multiples.
 c) Limited Functioning: The automated teller machine performs only the
limited functions. For other banking activities like credit limits, locker
facilities, etc. the customer has to approach the bank in person or by other
means.

Debit Card: Meaning, Advantages & Disadvantages of Debit Card

Debit cards are also known as cheque cards. Debit cards look like credit
cards or ATM cards but operate like cash or a personal cheque. Debit cards are
accepted at many locations including grocery stores, retail stores, gasoline stations
and restaurants. One can use his/her card anywhere. It is an alternative to carry a
cheque book or cash. There is a difference between credit cards and debit cards. A
credit card is a way to “Pay later” while a debit card is a way to “pay now”.
When one uses a debit card his/her money is quickly deducted from his/ her
savings account. When one uses a debit card one is subtracting one’s money from
his/her own bank account. Debit cards allow one to spend only what is in her/his
bank account. It is a quick transaction between the merchant and one’s personal
bank account. Obtaining a debit card is often easier than obtaining a credit card.

Advantages of Debit Card:

a) Prepaid Card: Debit card acts as a type of prepaid card. It is so, since it
already has a sufficient amount of cash balance in its holder’s bank account. It
permits to carry on the value of the transaction (i.e. purchases) to the extent of
available balance in its holder’s bank account.
b) Nominal Fee: Bank issuing a debit card charges an annual fee for the
issuance and maintenance of card. This fee charged is very nominal in nature.
Generally, bank charges the fee on a per annum or yearly basis. Such a fee gets
automatically debited (deducted) from the debit-cardholder’s bank account.
c) Alternative to Cash: Debit card acts as an alternative mode of payment
for executing various cash-related financial transactions. It can be used for the
purchases of goods and receipt of services. In its presence, there is no need to carry
a large amount of cash. Thus, it helps to avoid carrying huge amount of cash while
traveling and minimize risk of loss due to theft, damage, etc.
d) Immediate Transfer of Funds: Debit card ensures immediate transfer
of funds in the merchant’s or dealer’s bank account. Such a transfer of funds takes
place almost instantly at the moment of purchases of goods and receipts of
services. With its use, there is no need to visit bank’s office premise and do a
manual transfer of cash in the merchant’s or dealer’s bank account. Thus, it saves
precious time and gives ease, safety, and comfort to its holder in his or her’s
finance related activities.
e) Instant Withdrawal of Cash: The debit card facilitates instant
withdrawal of cash from any nearest ATM. This helps its holder to avoid a
personal visit to bank’s office premise and wait in a long time consuming queue. In
short, it also acts as an ATM card to meet its holder’s cash-related needs, anytime
and anywhere.
f) Easy to Manage : Debit card is very easy to carry, handle and manage
while traveling to outstations or overseas. Being small, thin, flat and having a
negligible weight it easily fits in any pocket. It can be handled very freely even with
just two fingers. Managing it is also not a big problem. A cardholder must just take
enough care to see to it that:
Debit card is always covered with a thick plastic cover to avoid scratching of
its sensitive surface.
It doesn’t come in contact with contaminated water and heat.
It doesn’t get folded accidentally; this helps to prevent its breakage.
It is placed safely in a convenient location which one remembers. This helps
to avoid it getting misplaced and lost due to negligence.
Earns Bonus Points: Now-a-days, the competition among debit card
providers (banks) is challenging. Today, most banks offer bonus points to encourage
their cardholders (customers) to make purchases using their debit cards. Banks are
able to offer such points to their cardholders as it’s merchants and not them who
actually run the reward program. After every successful sale, a merchant gives the
bank a small cut-off or percentage as a commission. This commission is further
shared or divided by the bank with its holder (as a reward) who did the original
purchase. Thus, in return, it finally also helps the cardholder earn bonus points on
selected financial transactions executed by him or her via a debit card.In this cycle,
all, viz., bank, merchant, and cardholder are directly benefited. Bank offers an
incentive like this to improve the sale of the products in the ordinary course of
business and contribute in the economic growth.
Gifts on redeeming points: As we have seen above, debit card helps to
accumulate bonus points through a reward program. These points can be redeemed
by the cardholder (within card’s expiration date) at any merchant website and/or
outlet that bank has already authorised. While redeeming accurred points,
cardholder gets an idea of its worthiness in terms of amount, and so he/she
proceeds to claim gifts nearly equal to that amount.
Free insurance coverage: Debit-cardholders also gets free insurance
coverage. The bankers provide such insurance facilities to attract new customers
and to maintain their current customer strength. They provide various types of
insurances for free to their cardholders:
Insurance on loss of debit card,
Purchase insurance,
Personal insurance,
Accidental insurance,
Travel insurance, and so on.
However, these types of insurances are given freely to cardholders depending on
which type of debit card they have possessed. The cost of insurance premium is
borne by the bankers who provide debit cards to their customers.

Miscellaneous advantages:
Miscellaneous advantages of debit card are as follows:
Debit card acts as an alternative to a traditional cheque payment.
It helps to budget one’s expenses and do a responsible spending of own
money within account limits.
Its holder uses his own money and not any borrowed (loaned) money. Unlike
a credit card, here, no interest is charged. Hence, its transactions are interest free.
It is accepted internationally, by e-commerce websites, and almost
everywhere by merchants who display the logo of payment processing companies
like VISA, Master Card, American Express, etc. This ensures making successful
payments anywhere in the world with ease.
 It offers optimum levels of security. This greatly minimizes the chances of
fraud, misuse and theft of money.
Overall, it enhances the banking experience of a cardholder

Disadvantages of Debit Card:

A few disadvantages are also associated with debit cards. These are as follows :
a) Unprotected against identity theft : Debit cards are protected only by an
encrypted number, known as PIN. This PIN cannot give protection against identity
theft. Anyone carrying the card can access the account fi the PIN is known.
b) Incapable of business Transactions : In most cases, the issuing banks limit
the maximum amount that can be withdrawn or transfered by the customer. This
hinders business transactions where the volume and the value of the amount
involved are considerably high.
c) Terminal Dependent : Only merchants having an electronic terminal can
perform transactions through debit cards. Moreover, a customer can access account
only from the place where the issuing bank’s outlet terminal exists.

Meaning of Credit Card:

Credit cards were first introduced by travel agencies and the idea was later
picked up by banks. They are made of plastic material and therefore called ‘plastic
money’. A card issued by a financial company giving the holder an option to borrow
funds, usually at point of sale. Credit cards charge interest and are primarily used
for short-term financing. Interest usually begins one month after a purchase is made
and borrowing limits are pre-set according to the individual’s credit rating.
Features of Credit Card:

 a) Parties: The credit card system has three parties – the bank issuing the
credit card; the account holder using the card and the establishments
accepting the cards for payment of goods and services sold.
  b) Specific Person: A customer with assured and substantial income and
who maintains good account is issued with a credit card.
 c) Size of the Card: The cards are of standard size and thickness.
 d) Details: The details such as name of the cardholder, account number,
validity date are embossed on the card so that they can be checked with
imprinter machine.
 e) Specimen Signature : The card also bears specimen signature of the
card holder

Advantages of Credit Card:

 a) Purchasing: These cards can be used for purchase of goods, getting

services from hotels, railway stations, airlines upto a specified limit.
 b) Easy Transaction: The cardholder signs the invoice which is then sent to
the bank which in turn makes payment to the seller or provider of services.
Later, the bank recovers the money from the account holder. This saves the
customers from the trouble and danger of carrying cash with them while
travelling.
 c) Other Uses: Some banks even allow withdrawal of cash from their
branches. The credit cards can be used for payment of telephone bills or for
buying a jewellery.
 d) Increase in Business: The business of the establishment increases and
the banks get higher rate of interest or some fee is charged. The
establishments accepting credit cards enter into agreement with the banks.
The supplier verifies the card with the help of imprinter machine.
In this way credit card is useful to all. It has become a status symbol in India though
in foreign countries it has become quite common.

Disadvantages of Credit Card:

a) The high interest rates: Compared to regular bank loans, credit cards
have extremely high interes rages. Sometimes this interest rate can be as high as
20% for any purchases that are not paid in full at the end of the month.
 b) The illusion of “Free Money”: Credit cards create the illusion of free
money and this leads to the temptation to overspend. This makes credit
card owners want to purchase things they don’t need. Apparetly signing a piece of
paper isn’t the same as paying in cash. People that are bad at budgeting are the
ideal customers for credit card companies, and they know it.

c) The Danger of an Unpaid Balance: Because you are only billed once a
month it is easy to forget how much you spent that same month. This way many
credit card users spend more than they can cover at the end of the month. In just a
couple of months of unpaid balances the interest rate can be enough to become the
start of a long-term debt problem.

d) Credit Card Thief and Fraud: The last but probably most important
disadvantage and risk of using credit cards is the possibility of fraud or theft. There
is no need for a modern thief to take your credit card physically, all he needs is
some numbers and your money can dissapear from your bank account.

It is important you check each monthly statement to find any clues of fraud.

What is e-Money?

Electronic money (e-money) is a digital store of a medium of exchange on a

computerized device. E-money can be used for payment transactions, with or
without bank accounts. The great advantage of course is a cashless payment
system that makes money transfers of any size quick and easy. Electronic money
plays a massive role in the digital currency revolution that is sweeping the world.

Electronic money refers to the currency electronically stored on electronic

systems and digital databases, as opposed to physical paper and coin money, and is
used to make it easier for users to transact electronically. The value of the
electronic currency is backed by fiat currency.
Fiat money, simply put, is a legal tender, whose value as a currency is
established by an issuing government and consequently, is also regulated by it. Fiat
money is the exact opposite of commodity money, whose value is based on
an underlying asset, such as gold or silver.

Features of Electronic Money

Just like physical paper currency, electronic money also includes the following four
features:

 Store of value: Just like physical currency, electronic money is also a store
of value, the only difference being, that with electronic money, the value is
stored electronically unless and until withdrawn physically.
 Medium of exchange: Electronic money is a medium of exchange, i.e., it is
used to pay for the purchase of a good or when acquiring a service.
 Unit of account: Just like paper currency, electronic money provides a
common measure of the value of the goods and/or services being transacted.
 Standard of deferred payment: Electronic money is used as a means of
deferred payment, i.e., used for the tools of providing credit for repayment at
a future date.

Advantages of Electronic Money

Electronic money offers several advantages for the global economy, including:
1. Increased flexibility and convenience
The use of electronic money brings increased flexibility and convenience to
the table. Transactions can be entered into from anywhere in the world, at any
given time, with one click of a button. It removes the hassle and tediousness
involved with the physical delivery of payments.
2. Historical record
The usage of electronic money is becoming increasingly popular because it
stores a digital historical record of each and every transaction made. It makes
tracing back payments easier and also helps with making detailed expenditure
reports, budgeting, and so on.
3. Prevents fraudulent activities
Since electronic money makes available a detailed historical record of each
and every transaction made, it is very easy to keep track of transactions and trace
them back through the economy. It increases security and helps prevent fraudulent
activities and malpractices.
4. Instantaneous
The use of electronic money brings with it a kind of instantaneousness that
has not been experienced before in the economy. Transactions can be completed in
split seconds with the click of a button from virtually anywhere in the world. It
eliminates problems of physical delivery of payments, including long queues, wait
times, etc.
5. Increased security
The use of e-money also brings with it an increased sense of security. To
prevent loss of personal information while transacting online, advanced security
measures are implemented like authentication and tokenization. Stringent
verification measures are also employed to ensure the full authenticity of the
transaction.
Disadvantages of Electronic Money
Electronic money comes with the following disadvantages:
1. Necessity of certain infrastructure
To use electronic money, the availability of certain infrastructure is
necessary. It includes a computer or a laptop, or a smartphone, and a stable
internet connection.
2. Possible security breaches/hacks
The internet always comes with the inevitability of possible security breaches
and hacks. A hack can leak sensitive personal information and can lead to fraud
and money laundering.
3. Online scams
Online scamming is also possible. All it takes for a scammer is to pretend to
be from a certain organization or a bank, and consumers are easily convinced to
give away their bank/card details. Despite the increased security and presence of
authentication measures to counter online scams, they are still something to be
looked after.
1. What is an EFT payment?

An electronic funds transfer (EFT), or direct deposit, is a digital movement of

money from one bank account to another. These transfers take place independently
from bank employees. As a digital transaction, there is no need for paper
documents. EFT has become a predominant method of money transfer since it is a
simple, accessible, and direct method of payment or transfer of funds. As
businesses increase their usage of EFT, paper checks become obsolete due to
expense, slower expedition, and overall effort.

2. What is the Electronic Fund Transfer Process?

An EFT transfer is usually very straight forward. There are two parties: the
sender of funds, and the receiver of funds. Once the sender initiates the transfer,
the request channels through a series of digital networks originating from either the
internet or a payment terminal, to the sender’s bank, and then to the receiver’s
bank. Senders can be anyone from an employer, to a business, to an individual
paying a vendor for a service such as electricity. Likewise, recipients can be entities
like employees, goods suppliers, retailers, and utility companies. Most payments are
cleared, that is complete, within a couple days.

3. Types of EFT Payments

FT payment methods vary. Every method of EFT offers ease and fast delivery,
which is why it’s become so popular. While EFT is preferred worldwide, it’s
important to know the various ways one can take part in EFT payments. Here are
the most common types of EFT:

Electronic Checks

In this payment, a digital check is generated upon the payer’s authorization.

E-checks are commonly used for vendor payments.

Direct Deposit
 With direct deposit, funds are automatically deposited into an account with
little to no paperwork. This method is popular among employees. While the
automatic deposit requires almost no work on a regular basis, the deposit needs to
be set up, and this requires bank account information for the recipient, among other
potential information for entry.

Phone Payments

This is a casual transaction, and it occurs during a phone call. Usually the
payee will supply their information, typically a card number, to the recipient over
the phone. The transaction will happen on the recipient’s line. The payee does very
little after verbal authorization. This is common for utility payments.

ATM Transactions

A global convenience, ATM transactions occur at electronic kiosks found

throughout cities and banks all over the world. In this case, a person is withdrawing
cash from their bank account by inserting their debit card into a machine, which will
transmit information to the bank, and then process the request to dispense money.
It is an instant transaction.

Card Transactions

During the point of sale phase of a transaction, a credit card or debit card is
the most commonly used form of payment around the world, replacing cash. This
can be in person or online, and entails the swipe, dip, or entry of a card, during
which account information is electronically received and a payment withdrawal is
approved, then the payment is scheduled and processed within a day or two.

Internet Transactions

The internet version of tapping, swiping, or inserting a card involves manual

entry into a point of sale field, followed by clicking a payment button. This process
does the same as the above, processing an approval for payment, and then
transferring funds for payment within a couple days.
5. Are Electronic Fund Transfers Safe?

One of the best features of the EFT is its security. While transmitting over the
internet always involves an element of risk, EFT is generally considered a safer
method of payment than a traditional paper check. Some types of EFT, like the ACH,
are more secure than others. The best way to ensure a tamper-free EFT is to use
companies that you know and trust, or come from a reliable source in the case of a
recommendation. Using third party entities, like EBANX, can help make the right
decisions when it comes to navigating EFT for your own business.

6. What are the Benefits of Electronic Fund Transfer?

When it comes to payment, EFT has a lot to offer. All types of EFT are fast
and reliable, and they don’t require much work on either end of the transaction.
This means EFT is a cost-effective solution so businesses save money. The low effort
aspect is a financial benefit when it comes to time spent, but it also means
employees can concentrate on larger issues since the details are taken care of
through electronic automation.

The use of paper checks requires check printing and postage, both of which
are extra costs. Personnel interaction is needed for these tasks, which means less
gets done, or additional employees are necessary. A risk of mailing checks involves
potential mail loss, or even interception of checks. Stop payment is a necessary
expense in either of these cases. All of this is gone with an EFT.

When using cash, an in-person transaction is required. There’s risk of human

error for counting, risk of fraudulent bills, and extra expense and effort for an
employee to manage the money from transaction to filling the safe, to in-person
deposit at the bank. Again, these risks are totally gone with an EFT solution, like a
credit card.
EFT’s established safety is one of the best benefits. Besides cost, secure business
establishes entities as trustworthy, resulting in repeat sales and long-term
relationships.

IMPS:
Immediate Payment Service (IMPS), which was introduced in 2010,
marked the culmination of the collaborative efforts of the NPCI (National
Payments Corporation of India) and the RBI (Reserve Bank of India) to simplify
payment transfers.
IMPS is a popular method of instantly transferring money across bank accounts.
So, we'll take a look at IMPS's meaning, various facets of IMPS usage, and its
significance in this blog. Let's get started.
What is IMPS?
IMPS is a real-time electronic money transfer mechanism that immediately
credits money to the payee or beneficiary account. Interbank transactions can
be initiated via IMPS using various means, including mobile banking, internet
banking, ATMs, SMS, etc. The daily IMPS limit for transactions is ₹5 lakhs.
This technology served as the foundation for the modern FinTech industry. For
example, UPI is an IMPS variant that wouldn't have been possible without the
invention of this technology first.
Features of IMPS:
Here are a few of its main characteristics:
 It facilitates secure interbank money transactions.
 The participants for IMPS include a sender, receiver or beneficiary, banks, and
NPCI.
 IMPS transactions are compatible with both mobile and online banking
systems.
 You can use a beneficiary's Mobile Money Identifier (MMID) or contact number
to transfer money to them over the IMPS platform.
 IMPS supports the Reserve Bank of India's (RBI) initiative to digitise retail
payments.
 When carried out via smartphones, IMPS transactions do not always require
the beneficiary's bank account information.
  Both the sender and the receiver are notified after the money transfer has
been completed successfully.
Necessary Information for IMPS Transactions:
An IMPS payment must include at least one of the beneficiary's information
listed below:
Aadhaar ID
Mobile numbers and the Mobile Money Identifier (MMID) for the sender and receiver
Bank account number and IFSC code (an 11-digit code present in the user's
chequebook)
Charges in IMPS transactions:
A set of charges accompanies each IMPS transaction. These IMPS charges are
determined by the amount transferred and a service tax of 18%. The fees,
however, are at the discretion of each bank.
The following fees are charged for IMPS transactions, excluding Goods and
Service Tax (GST).
For transfers up to ₹10,000- ₹2.5
For transfers between ₹10,000 and one lakh rupees- ₹5
For transfers between ₹1 lakh and ₹2 lakh- ₹15
How to transfer money via IMPS?
There are two ways to transfer money using IMPS:
P2A or Person to Account number: In this method, you can transfer funds to the
beneficiary's bank account by entering the recipient's or beneficiary's account
number and IFSC code.
P2P or Person to Person: You can send money by entering the recipient's or
beneficiary's mobile number and MMID.
Advantages of IMPS Payments:
Real-time: IMPS allows for instant, real-time money transfers. This means that the
money is transferred and credited to the recipient’s account in a matter of minutes,
rather than hours or days.
Available 24/7: IMPS is available 24 hours a day, 7 days a week, including
holidays. This means you can transfer money at any time, without having to worry
about bank working hours.
Convenient: With IMPS, you can transfer money using just the recipient’s mobile
number, and a unique identification number called an MMID (Mobile Money
Identifier). This eliminates needing to know the recipient’s bank account number or
IFSC code.
Secure: IMPS uses two-factor authentication and a one-time password to ensure
the safety of your transactions. This provides a high level of security for your funds.
Accessible: To use IMPS, you only need a mobile phone with internet access and a
bank account with IMPS enabled. This makes it accessible to a wide range of users.
Low cost: IMPS transactions are less expensive than traditional bank transfers and
cash deposits.
Widely accepted: IMPS is accepted by almost all banks in India, so it is a widely
accepted payment option across the country.
Easy-to-use: IMPS is easy to use and can be initiated through a mobile banking
app, internet banking, or by visiting your bank’s ATM.
Small transactions: IMPS can be used for small transactions as well, as there is no
minimum limit for the transactions.
Transactions across different banks: With IMPS, you can transfer money to any
bank account in India.
Disadvantages of IMPS Payments:
1. Limited transaction amount
Transactions are limited to a maximum of INR 5,00,000.
2. Not all banks support IMPS
Not all banks in India support IMPS, which limits its utility.
3. Security concerns
As with any electronic fund transfer service, there is a risk of fraud and hacking,
which can lead to security concerns for users.
4. Service availability issues
In some cases, the service may not be available due to technical issues or
maintenance.
5. Limited accessibility
The service is currently only available on mobile devices, which can be a limitation
for some users.
6. Requires a mobile number for both sender and receiver
This can be a limitation for people who don’t want to share their mobile numbers.
7. Time-consuming authentication process
IMPS requires several steps of authentication to initiate a transfer, which can be
time-consuming for users.
8. Requires internet connectivity
To use IMPS, both sender and receiver need to have internet connectivity which can
be a limitation in areas with poor internet connectivity.
9. May require additional authentication
Some banks may require additional authentication such as OTP or biometric
authentication, which can add extra steps to the process and make it less
convenient.
10. Can be confusing for non-tech-savvy users
For people who are not familiar with using mobile banking apps or other digital
financial services, using IMPS can be confusing and difficult to navigate.
RTGS:
RTGS is used in the transfer of very large amounts and on a real-time basis. It
is used by retail as well as corporate account holders to transfer instantly. Therefore
- it helps to get you the money instantly.
Characteristics of RTGS:
Here are the primary features of RTGS:
 It is a safe and secure source of sending and getting money.
 It will facilitate the real-time transfer of the funds right online.
 It is also a reliable source as it is maintained by RBI.
 As it is used for high-value transactions - the minimum transaction in this
mode is Rs. 2 lakhs.
 The fees and the charges of RTGS will depend on the amount of transfer.
 The time for RTGS will differ from one bank to another.
 It can either be done online or also by physically visiting the bank.
Pros or Advantages of RTGS:
 RTGS is one of the safest as well as the fastest mode of interbank transfer.
 It is a paperless transfer of funds.
 There are no additional charges levied for RTGS transactions.
 The beneficiary is not required to visit the bank, to deposit the money.
 The funds can be transferred using the internet banking service.
 This facility is available on all business days, whose timings may vary from
bank to bank.
  It is an immediate fund transfer mechanism.
 RTGS is now available 24*7 from Monday to Sunday.
 RTGS facility can be availed either online through mobile or internet banking
or offline through the bank branch.
 It does not involve any credit and settlement risk for the recipients as every
transaction is settled instantly.
 The customers are enabled to predict the cash flow by knowing when their
account will be credited and debited.
Cons or Disadvantages of RTGS:
 RTGS does not provide the facility to track the transaction to its customers.
As only the provide confirmation is implemented by the central bank. In
which the remitting bank gets a message of fund transfer to the beneficiary
bank, from the central bank.
 RTGS is that the gross system has the gridlock risk that does not have
enough money.
 The minimum amount that can be remitted through RTGS is Rs 2 lac with no
upper limit.
 The RBI of India has only implemented the positive confirmation in which the
remitting bank receives a message of fund transfer to the beneficiary bank
from the RBI.
Fees and Charges for RTGS Transactions:
In case of online transfers, no charges are levied for RTGS transactions. In case the
RTGS transaction is completed at a bank branch, a charge of Rs.15 plus GST is
levied.

What are the Timings for RTGS?

RTGS transactions can be completed on a 24/7 basis, expect between 11:30
p.m. and 00:30 a.m. due to cut-off.
Details Required for RTGS:
The following details are required to make a transaction through RTGS:
 Name of the beneficiary
 Account number of the beneficiary
 Name of the beneficiary's bank
  Name of the branch office of the bank
 ISF Code or IFSC of the beneficiary account
 The amount which has to be transferred

NEFT:
The full form of NEFT is National Electronic Funds Transfer. The Reserve Bank
of India (RBI) introduced this system of fund transfer in 2005. Under the NEFT,
customers can electronically transfer funds from one bank to another bank. This is a
very convenient way of transferring funds and it is also very fast and efficient.
Advantages of NEFT:
 Convenient for transferring money from one bank to another bank.
 Fast and efficient.
 Safe and secured method of payment.
 No charges levied by RBI on banks
Disadvantages of NEFT:
 Cannot be used for real-time or urgent fund transfers.
 Requires a minimum amount to be transferred (usually Rs. 5000)
How are NEFT and RTGS different?
NEFT and RTGS can be differentiated on the basis of minimum limit, the
maximum limit, settlement time, additional charges, transfer timing, service
availability and so on.
 Minimum limit: The minimum limit for NEFT is Rs. 1000, whereas the same for
RTGS is Rs. 200000.
 Maximum limit: The maximum limit for NEFT is Rs. 200000, whereas the
same for RTGS is Rs. 2000000.
 Settlement time: The settlement time for NEFT is 12 hours, whereas the same
for RTGS is almost instantaneous.
 Additional charges: No additional charges are levied for NEFT, whereas there
are charges levied for RTGS. For RTGS, Rs. 30 is charged for every
transaction.
 Transfer timing: The transfer timings for NEFT and RTGS are different – NEFT
operates from Monday to Friday and timings are half-hourly slots between
09:00 – 20:00. On Saturday, NEFT operates between 09:00 – 13:30 GMT.
RTGS, on the other hand, operates round-the-clock on weekdays.
  Service availability: NEFT is available on all days except Sundays, whereas
RTGS is available 24*seven.
 Suitable For: NEFT is suitable for small money transactions and RTGS is used
for large money transactions.
 Mode of Payment: NEFT and RTGS are both modes of payment.
 In India, the National Electronic Funds Transfer (NEFT) system is used for
transferring money electronically between bank accounts while Real-time
Gross Settlement (RTGS) is a facility to transfer funds immediately from one
bank to another.
 So, these are the differences between RTGS and NEFT. Choose the one which
suits your needs the best. Both systems have their own advantages and
disadvantages, so choose wisely.
How to choose between RTGS and NEFT?
NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross
Settlement) are two very popular modes of online fund transfer. While both systems
have their own advantages and disadvantages, it can sometimes get confusing for a
layman to choose between the two.
What Details are Required for NEFT:
In order to transfer money through NEFT banking, you must first add the
person or organisation to whom you want to send money as a beneficiary.
Following are the details required for NEFT:
Name of the account holder to whom you want to send funds
 Account number
 Bank name
 Branch name
 Branch IFSC code
 Amount details
After adding a beneficiary, you are required to wait for a few minutes/hours to
get it activated by the bank. Once it gets activated, you can perform
transactions.
Features of NEFT:
Availability: In accordance with the RBI guidelines, the NEFT transfer facility is
available round the clock
No transaction charges: No transaction charges are applicable if the payment is
initiated through internet banking or mobile banking app like ICICI Bank iMobile Pay
app
Minimum transaction limit: The minimum transaction limit is Rs.1, and the
maximum transaction limit is Rs.10 to Rs.25 Lakh (based on customer segment) if
you are doing it between 01.00 h?– 19.00 h? . At ICICI Bank, if you are doing in 2nd
& 4th Saturday, Sunday & RTGS Holidays, the maximum transfer of funds is Rs.2
lakhs
Nominal Charges: If you are doing the NEFT transaction by visiting the bank brand
at ICICI Bank, the following nominal charges are applicable

Transaction charges NEFT

Rs. 2.25 + Applicable

Payment up to Rs.10,000
GST

Payment Above Rs. 10,000 and up to Rs. 4.75 + Applicable

Rs. 1 lakh GST

Payment Above Rs. 1 lakh and up to Rs. 14.75 +

Rs. 2 Lakh Applicable GST

Payment Above Rs. 2 lakh and up to Rs. 24.75 +

Rs. 10 lakh Applicable GST

Benefits of NEFT:
Accessibility: NEFT online transfer can be accessed 24*7 through ICICI
Bank Internet Banking and iMobile Pay App
Minimal Charges: This is the most cost-effective mode of online transfer of funds
as you don’t have to incur much transaction charges
Transfer Funds across India: Through ICICI Bank’s NEFT, you can initiate fund
transfer pan India with a large network of branches
Free Charges: ICICI Bank savings account customers do not have to face any
charges for online NEFT transactions
Receive Confirmation: There is quick confirmation of the transaction to both
parties via SMS
Easy Payments: You can use NEFT for payment of loan EMIs, credit card dues,
among others

SWIFT:
The Swift programming language is a general-purpose, open-source
programming language designed by Apple. The language is influenced by Python,
making it fast and intuitive. Swift is mainly used for native iOS and macOS
development. Many popular apps including LinkedIn, Lyft, and WordPress are
written in Swift. If you’re interested in iOS development, Swift is a great language to
learn. Let’s learn more about this popular language!
What is Swift?
Swift is a multi-paradigm, general-purpose, open-source programming language for
iPadOS, macOS, tvOS, watchOS, and iOS development. It was created by Apple in
2014 to give developers a powerful language to develop iOS apps. According
to swift.org, the language was designed to be safe, fast, and expressive. It’s
intended to be a replacement for C-based languages. The Swift language is
constantly evolving, and the community continues to grow. Swift source code can
be found on GitHub, making it easy for anyone to access the code.
Swift Features:
Powerful generics: Generics allow you to write flexible, reusable functions and
types that can work with any type.
Native error handling: Swift provides support for throwing, catching, propagating,
and manipulating errors at runtime.
Structs and classes: Swift allows you to define a structure or class in a single file,
and the external interface is made available for other code to use.
Protocol extensions: Swift allows you to define behavior on protocols themselves,
rather than in global functions or individual conformances.
Memory safety: Swift automatically manages memory and prevents unsafe
behavior from happening in your code.
Memory management: With Automatic Reference Counting (ARC), Swift tracks
and manages our app’s memory usage. This means we don’t need to worry about
memory management ourselves.
Flexible enumerations: Swift enums support pattern matching and can have
payloads.
Package manager: The Swift package manager is a cross-platform tool we can use
to build, run, test, and package Swift libraries and executables.
Debugging: Swift uses the LLDB debugger, which provides you with a REPL and
debugger to enable integrated debugging, consistent formatting, failure recovery,
and expression evaluation.
Source and binary compatibility: The latest version of Swift has binary
compatibility for apps. Swift libraries are included in every operating system
release, so your apps will use the latest version of the library in the OS, and your
code can run without recompiling.
Tuples: Tuples allow us to create and share value groupings. We can use tuples to
return multiple values as a single value.
Closure syntax: Swift has a lightweight closure syntax, which has optimizations to
enable a clutter-free syntax and clear style.
Swift Pros:
Fast and powerful: Swift uses LLVM compiler technology and its standard library
makes writing code intuitive and efficient.
Modern: Swift APIs are easy to read and maintain. Inferred types make your code
cleaner and less error-prone. Modules eliminate headers and provide namespaces.
Easy to learn: Swift was designed with beginner programmers in mind. You can
use Swift Playgrounds for iPad to get started with Swift code, and you can access
courses to learn how to build Xcode apps.
Safe: Swift has a variety of safety features, such as automatic memory
management, value types, and variable initialization. In Swift, objects can never
be nil, and the Swift compiler will stop you if you try to use a nil object. These
features help prevent runtime crashes.
Cross-platform: Swift supports all Apple platforms, Linux, Windows, and Ubuntu.
Dynamic libraries: Dynamic libraries exist outside of your code and are uploaded
when needed. Libraries are integrated into every device release.
Large community: Swift has one of the most active and rich open-source
communities. Also, there are a lot of resources to help you learn the language.

Swift Cons:
Relatively new language: Swift is still a young language. This means that some of
its capabilities and resources aren’t as robust as other programming languages.
Weak cross-platform support: While Swift does support all Apple platforms,
Linux, and Windows, it works best for native iOS development.
Frequent updates: Swift is a newer language and has frequent updates. This can
make it hard to find the right tools to help with certain tasks.
IDE support: Xcode, the official Apple IDE, falls short in certain support areas,
including syntax highlighting, autocomplete, refactoring, and compiling.
What Is UPI Transaction?
UPI, or Unified Payment Interface, is the first step taken by India for cashless
transactions. This accessible and convenient method can be easily done with the
help of smartphones. UPI helps you to transfer money from one bank to another in
real-time.
However, in this transaction, you won’t need to use any of your bank account
details at the time of transactions but only a basic UPI PIN.
How Does UPI Transaction Work?
UPI transactions are becoming more popular due to their compatibility, and
almost every Indian bank and payment application accepts this method. UPI
transaction works with a simple process. Here are the steps for the same.
You will need a virtual payment address to carry out the transactions.
Once you create this with the required information, you will get a UPI ID.
Then, you need to generate a PIN and use that for seamless transactions.
As you set up your account, you can transact from your smartphone by using the
Internet. However, you need to keep the linked bank account and mobile number
What Is the Maximum Limit of UPI Transaction?
As of 2023, the maximum limit of transactions across all UPI applications is ₹
1,00,000 per day. In addition, you can’t send money more than 10 times a day.
Further, you will reach a daily maximum limit if you request someone more than ₹
2000 in a day.
What Are the Advantages of UPI Transaction?
Here are the advantages of UPI transactions.
 Easy and safe
 No need to add details of a payee
 No hidden or extra charges
  A high upper limit of daily transaction
 Easy transaction method for merchants
 Users can use different bank accounts
 Great help to avoid the hassle of carrying cash
What Are the Disadvantages of UPI Transaction?
 Here are the disadvantages of UPI transactions.
 Delay in payments due to network or bank server issues
 Deducted money can take up to 48 to be credited again
 Only 6 digit PIN may not be strong enough
 Hence, these disadvantages are minor and easily avoidable compared with
the huge benefits of a UPI transaction. Therefore, consider this guide to open
your account if you are a new UPI user. However, you always need to
maintain proper safety measures while transferring money via online
mediums.

Dr. K. Ramesh MCS, M.Phil, MBA, M.Com, Ph.D, SET,

Professor, PG & Research Department of Commerce,
K.S.Rangasamy College of Arts & Science (Autonomous),

TIruchengode.637215