InvestorQ : What is the detailed procedure to transfer funds into my trading account using the NEFT / RTGS facility?
Niraj Mehta made post

What is the detailed procedure to transfer funds into my trading account using the NEFT / RTGS facility?

Answer
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sara Kunju answered.
1 year ago


Another very popular method of fund transfer is through National Electronic Fund Transfer (NEFT). Typically, say the time take for NEFT transfer from HDFC to SBI would be 2-3 hours. But if the NEFT is done from the same bank where your broker has the account, then the credit is instantaneous. You will have to add the broker’s bank account as a beneficiary and then transfer funds using the password and the OTP as second level authentication. There are no fund transfer charges for NEFT. You can transfer funds into your equity trading account or your commodity account via NEFT. You can either do the NEFT transfer online or via NEFT cheque at your branch. Time taken is the same in both cases.

There is no major difference between NEFT and RTGS (Real time gross settlement); the only difference being that RTGS is applicable to fund transfers above Rs.2 lakhs. In both the cases, the transfer from one account to another happens in cycles of 1 or 2 hours and that is the time within which the funds get credited into the bank account of the broker. What about IMPS? Remember, NEFT and RTGS can only be done during normal banking prescribed hours (9.00 am to 6.30 pm). If you do the NEFT after the close of NEFT timings then the transfer will only be executed the next banking day. The way out is IMPS. An IMPS transfer is instantaneous and can also be done outside of NEFT hours and on NEFT holidays. Say, the difference between IMPS and NEFT HDFC is the time taken and the 24X7 facility of IMPS. But IMPS does attract fund transfer charges and that adds to your trading cost. Your bank will provide a schedule of IMPS charges and normally these charges are waived if you are a high value customer of the bank. Nowadays, funds are also permitted to be transferred via UPI which is an email code based transfer but considering that it is still under testing, brokers only permit transfer of funds via UPI up to a certain limit.