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Initially free to use, UPI apps have started charging fees after a certain number of transactions. As a result, many people are reverting to cash transactions, NEFT, and payments through their bank’s app
UPI transactions are easy to use, leading many people to prefer apps like PhonePe, Google Pay, and Paytm. (News18 Hindi)
Nowadays, direct cash transactions and bank transfers have become less common because of UPI payments. UPI transactions are easy to use, leading many people to prefer apps like PhonePe, Google Pay, and Paytm.
Initially free to use, these apps have started charging fees after a certain number of transactions, which results in extra charges being deducted from your account. As a result, many people are turning back to cash transactions, NEFT, and payments through their bank’s app.
In today’s digital age, transferring money through banks has become easier and faster. However, banks charge different fees for these services, depending on the type of account. To transfer money directly from your account, you must be aware of the types of bank accounts, how money is transferred, and the associated charges.
Bank Account Types
- Savings Account: Generally for personal use, savings accounts offer a fixed interest rate and provide limited or free transaction facilities for money transfers.
- Current Account: Useful for traders and professionals, this account has no transaction limit, but charges may apply for money transfers.
- Salary Account: Typically for employed individuals, salary accounts have low or no charges on money transfers.
- NRI Account (Foreign National Account): Designed for foreign nationals or individuals residing outside India, different charges may apply for money transfers from abroad to India.
Types of Money Transfers and Charges
- NEFT (National Electronic Funds Transfer): Useful for both small and large transactions. Transaction charges vary by bank from Rs 1 to Rs 25.
- RTGS (Real-Time Gross Settlement): Suitable for transactions over Rs 2 lakh. Transaction charges vary from Rs 25 to Rs 50.
- IMPS (Immediate Payment Service): Available 24/7 for urgent transactions. Transaction charges range from Rs 5 to Rs 15.
- UPI (Unified Payments Interface): Small transactions are free of charge, although premium transactions may incur charges.
- Classic Cheque Transfer: There is no digital charge for money transfers via cheque.
Tips to Save Money
- Use UPI and IMPS: Small transactions can be done free of charge or at a reduced rate.
- Use Digital Payment apps: Banks may offer discounts for digital payments.
- Check Bank Rules: Charges vary by bank, so it is essential to be informed about the specific fees your bank charges.
