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Anita Bhoir Mumbai
Last Updated : Jun 14 2013 | 3:57 PM IST
Desperately seeking to send money to relative?
 
Not to worry. Help is at hand, as banks have begun offering card to card money transfer.
 
IDBI Bank, ICICI Bank, HDFC Bank, UTI Bank, Citibank and Kotak Mahindra Bank, in association with Visa, the global payment company, have started card to card money transfer facility the country.
 
This service allows customers to transfer money online from their bank accounts to any valid Visa debit or credit card issued by any bank in India.
 
Banks permit transfer of funds between Rs 25,000 and Rs 1 lakh per day with no restriction on the number of transactions per day. At present most bank's offer this facility free of cost.
 
However, they are planning to levy around Rs 25 per transfer depending on the quantum of money from the next quarter, said bankers.
 
Card to card fund transfer is a better option compared with other means of funds transfer such as cheque, demand drafts, money orders and electronic fund transfer (EFT) as it is instant, free of cost and the customer need not visit the bank's branch every time.
 
The other options cost around Rs 50 and it takes a longer time "" normally three to four days "" for the money to reach its destination.
 
The amount of funds that can be transferred through a card is also higher compared with the good ol' money order. But through this postal department vista, you can transfer only Rs 5,000.
 
Customers can also send funds through the real time gross settlement (RTGS) system set up by the Reserve Bank of India.
 
However, RTGS is economical only for high-value transactions and is a good proposition for corporates and not retail customers. The minimum amount that can be transferred under this is Rs 1 lakh.
 
Also, customer will have to pay in excess of Rs 50 per transaction, said a banker.
 
Another point is, to facilitate an RTGS transaction, all bank branches should be RTGS-enabled. At present, only about 110 bank branches are a part of the network.
 
A global standard for managing fund transfer, RTGS reduces risks and boosts investor confidence, apart from helping companies manage their working capital requirements more effectively.

 
 

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First Published: May 17 2005 | 12:00 AM IST

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