MODULE 4

Negotiable Instruments Act:

Outcome: Students should be
-Basics of negotiable
able to understand the basics
instruments act
of banking industry and
Promissory Notes
comprehend the performance
Bill of Exchange
measures. They should be
Cheque
able to analyse a bank’s
-Rules related to cheques,
performance.
Clearing cycle
 Introduction
• The Negotiable Instrument Act was promulgated in the year 1881 which
was introduced to ease the growth of banking and commercial
transactions.

• The basic purpose was to legalize the system of negotiable instruments.

The Act was enforced during British rule and to date, most of the
provisions still remain unchanged.

• The Ministry of Finance is the nodal organization that regulates the

system related to negotiable instruments.
 Introduction
• The process of transfers from one person to another in dealings of
monetary value in terms of legal documents is the negotiable
instrument.

• The legal definition of negotiable is that something can be transferable

from one party to another party by delivery so that the title shall pass
with or without the endorsement to the transferee.
 Objective
• The purpose of this document is to transfer the specific amount of
money to the assigned person.
 Objective
• The purpose of this document is to transfer the specific amount of
money to the assigned person.

• The instrument bears the promise to pay the sum of money at an

assigned future date or on-demand as the case may be.

• There are no certain set of fixed conditions to consider a document as

the negotiable instrument; however, for an instrument to be negotiable,
it must be signed with a mark or signature, by the maker of the
instrument that is the one who issues drafts.
 Parties
• The person who promises the amount of money is known as the drawer
of funds and the person receiving it is known as the drawee of funds.
 Characteristics
• Movable
• Written
• Definite time
• Specified persons
• Signature
• Monitory Value
 Types
• Promissory notes-
• Section 4 of the Negotiable instruments act,1881 defines a promissory
note as “ A promissory note is an instrument in writing (not being a
bank note or currency note) containing an unconditional undertaking,
signed by the maker to pay a certain sum of money only to or to the
order of a certain person, or to the order of the instrument”

• This transaction generally takes place between the debtor and the
creditor. The debtor creates the instrument promising the amount of
money on a specified date.
[Link]
 Types
• Promissory notes-
• There Are Two Parties to a Promissory Note:

• (1) Maker: Maker or drawer is an individual or entity who makes or draws the
promissory note with a promise to pay a certain sum as is specified in the promissory
note. Maker is also known as promisor.

• (2) Drawee: She/He is an individual, in whose favour the note is prepared. In usual
cases, the drawee is also the payee until and unless the promissory note is transferred
specifically in favour of the payee. For e.g. Ram is considered a drawer if he promises to
pay Shyam Rs.5000 (Shyam is the drawee). However, if the same promissory note is
transferred in favour of Rohan, then Rohan becomes the payee.

• (2) Payee: The payee is the person in whose favour the promissory note is drawn.
 Types
Promissory notes- Features
1. Printed/Written Agreement – A promissory should be in writing, and an oral promise to
pay money is not accepted.
2. Pay Defined Amount – It is a promise to pay the money on a particular time or when
demanded. The mentioned amount can neither be added or subtracted.
3. Signed Documents – The document is duly signed and drawn by the drawer and
stamped.
4. Unconditional Promise – The promise to pay a certain amount of money must be
absolute in all cases. In such notes, a conditional guarantee is not accepted.
5. Legal Composition – All payments should be made in the nation’s legal currency.
6. Detailed Information – The note has all the required information including the name of
the drawer and payee, date of maturity, terms of repayment, issue date, name of the
drawee, name, and signature of the drawer, principal amount, and the rate of interest,
etc.
 Characteristics
• Bills of Exchange-
• According to the Negotiable Instruments Act 1881, a bill of exchange is
defined as “an instrument in writing containing an unconditional order,
signed by the maker, directing a certain person to pay a certain sum of
money only to, or to the order of a certain person or to the bearer of the
instrument”.
 Characteristics
Features of Bill of Exchange
• It is important to have a bill of exchange in writing
• It must contain a confirmed order to make a payment and not just the request
• The order should not have any condition
• The bill of exchange amount should be definite
• Fixed date for the amount to be paid
• The bill must be signed by both the drawee(Purchaser) and the drawer (Seller)
• The amount stated on the bill should be paid on-demand or on the expiry of a
fixed time
• The amount is paid to the beneficiary of the bill, a specific person, or against a
definite order
 Characteristics
• Features of Bill of Exchange
• Drawer: It is the party who sells the goods, issues the bill of exchange, and is
yet to receive the money from the debtor.
• Drawee: It is the party who purchases the goods on credit and to whom the bill
of exchange is issued. Basically, drawee is the debtor and the drawer is the
creditor.
• Payee: It is the party that finally receives the payment on the due date. If there
is no transfer of the bill of exchange, then the drawer and the payee is the
same.
 Characteristics
• BoE Advantages
• Given that it is a legal document, it makes the process of recovery much
easier in case of default by the drawee.
• The bill bearer can get the bills of exchange discounted from a bank at
any time before the due date.
• The bills of exchange can be easily transferred from one party to
another through endorsement.
 Types of Bills
• types
• Documentary Bill- In this, the bill of exchange is supported by the
relevant documents that confirm the genuineness of sale or transaction
that took place between the seller and buyer.
• Demand Bill- This bill is payable when it demanded. The bill does not
have a fixed date of payment, therefore, the bill has to be cleared
whenever presented.
• Usance Bill- It is a time-bound bill which means the payment has to be
made within the given time period and time.
• Inland Bill- An Inland bill is payable only in one country and not in any
other foreign country. This bill is opposite to the foreign bill.
 Types of Bills
• types
• Clean Bill- This bill does not have any proof of a document, so the
interest is comparatively higher than the other bills.
• Foreign Bill- A bill that can be paid outside India is termed as a foreign
bill. Two examples of a foreign bill are an export bill and import bill.
• Accommodation Bill- A bill that is sponsored, drawn, accepted without
any condition is known as an accommodation bill.
• Trade Bill- This kind of bill is specially related only to trade.
• Supply Bill- The bill that is withdrawn by the supplier or contractor from
the government department is known as the supply bill.
 Bill of Exchange Promissory Note
Definition
A negotiable instrument issued to order the A negotiable instrument issued by the
debtor to pay the creditor a certain sum of debtor with a written promise to pay the
money within a specific date or on demand. creditor a certain amount within a specific
date or on demand.
Section
Mentioned in Section 5 of the Negotiable Mentioned in Section 4 of the Negotiable
Instruments Act, 1881 Instruments Act, 1881
Issued By
Creditor Debtor
Parties Involved
Three parties involved i.e a drawer, the Two parties involved i.e a drawer/maker and
drawee and a payee. the payee
Acceptance
Drawee needs to accept the bill of exchange No acceptance required from the drawee.
before payment.
Dishonouring of instrument
Notice served to all the concerned parties No notice served to the drawer in case of
 Cheques
A cheque is a piece of document/paper that orders the
bank to transfer money from the bank account of an
individual or an organization to another bank account.
The person who writes the cheque is called the “drawer”
and the person in whose name the cheque has been
issued is called the “payee”. The amount of money that
needs to be transferred, the payee’s name, date, and
signature of the drawer are all mentioned in a cheque.
 Cheques
There are certain points to remember regarding cheques which
are mentioned below:
1.A cheque can only be issued against a current or savings
bank account
2.A cheque without a date shall be considered invalid
[Link] the payee, in whose name the cheque has been issued,
can encash it
4.A cheque is only valid 3 months from the date it has been
issued
5.A 9-digit MICR (Magnetic Ink Character Recognition) code is
mentioned at the bottom of the cheque. This makes the
clearance of cheques easier for the banks.
 Characteristics
• Cheque-
• General crossing (section 123)
• Special crossing (section 124)
2002 Amendment to the Negotiable Instruments Act
• The increasing number of dishonoring cheques has stated the
need for amendments to eliminate the loopholes. The
amendments of 2002 have introduced new sections from Section
143 to Section 147 that has widened the scope and diminished the
limitation of the parent Act. The introduction of five new sections
and the Amendment Act was brought into force on Feb 6, 2002.
The Sections come under Chapter XVII that was primarily for
penal provisions as the person can be charged with offenses for
dishonoring the cheques in case of deficiency of funds.
Bearer Cheque Cheques
The bearer cheque is a type of cheque in which the bearer is
authorized to get the cheque encashed. This means the person who
carries the cheque to the bank has the authority to ask the bank for
encashment.
This type of cheque can be used for cash withdrawal. This kind of
cheque is endorsable. No kind of identification is required for the
bearer of the cheque.
For example: A cheque has been signed by Arjun (drawer) and the
payee for the cheque is Varun. Varun can either go to the bank
himself or can send a third person to get encashment for the cheque.
No identification shall be required for the bearer’s name.
If a person does not want their cheque to be endorsable, they can
strike off the “OR BEARER” option mentioned in the cheque.
 Cheques
Order Cheque
This type of cheque cannot be endorsed, i.e., only the payee, whose
name has been mentioned in the cheque is liable to get cash for that
amount. The drawer needs to strike the “OR BEARER” mark as
mentioned on the cheque so that the cheque can only be encashed to
the payee.
For Example: If a cheque has been signed with the name of Varun,
then only the payee can visit the bank to get an encashment for the
same for a order cheque.
 Cheques
Crossed Cheque
In this type of cheque, no cash withdrawal can be done. The amount
can only be transferred from the drawer’s account to the payee’s
account. Any third party can visit the bank to submit the cheque.
In case of a crossed cheque, the drawer must draw two lines at the
left top corner of the cheque.
Account Payee Cheque
This is the same as the account payee cheque but no third party
involvement is required. The amount shall be transferred directly to
the payee’s account number.
To ensure that it is an account payee cheque, two lines are made on
the left top corner of the cheque, labelling it for “A/C PAYEE”.
 Cheques
Stale Cheque
In India, any cheque is valid only until 3 months from the date of
issue. So if a payee moves to the bank to get withdrawal for a cheque
which was signed 3 months ago, the cheque shall be declared a stale
cheque.
For example: If a cheque is dated January 1, 2021, and the payee
visits the bank for withdrawal on May 1, 2021, his/her request shall be
denied and the cheque is declared stale.
 Cheques
Post Dated Cheque
If a drawer wants the payee to apply for withdrawal or transfer of
money after the present date, then he/she can fill a post dated
cheque.
For example: If the date on which the drawer is filling the cheque is
May 10, 2021, but he wants the payment to be done later, he/she can
fill the cheque dates as May 30, 2021. It shall be called a post-dated
cheque.
 Cheques
Ante Dated Cheque
If the drawer mentions a date prior to the current date on the cheque,
it is called ante dated cheque.
For example: If the current date is January 30, 2021, and the drawer
dates the cheque as January 1, 2021. It shall be considered as an
ante-dated cheque
 New Rule for Cheques
To make high-value cheques a lot safer, the RBI has introduced an
electronic authentication system called Positive Pay from January 1st, 2021
that will allow you to share the cheque details with your bank before the
bank processes it. This additional security layer is meant to address the
rising instances of cheque fraud that have made headlines throughout
the past year. As reported by the RBI, the total volume of fraud
transactions in India was pegged at Rs. 64,681 crores between April and
September 2020 with forged or counterfeit cheques accounting for a
significant share. So, as perpetrators' methods for counterfeiting cheques
turn more sophisticated with each passing day, the launch of Positive Pay
is definitely a shot in the arm of banks. Positive Pay is essentially a tool
designed to detect fraudulent activity. It facilitates by matching specific
information related to the cheque presented for clearing, like the cheque
number, cheque date, payee name, account number, amount, and other
details against a list of cheques previously authorized and issued by the
issuer.
 New Rule for Cheques
How does Positive Pay work?

According to the RBI, while most retail consumers prefer to use electronic
alternatives such as NEFT and RTGS, cheques are still a popular option
now. Before you issue a cheque, you need to share cheque details like the
name of the payee, issue date, and amount and send it to your bank via
email. When the cheque is presented to the bank for payment via CTS
Clearing, the bank will compare the instrument details received against
the details you send. In case of any mismatch, the bank may review it for
suitable action.
As reported by the RBI, the total volume of fraud transactions in India was pegged at Rs. 64,681
crores between April and September 2020 with forged or counterfeit cheques accounting for a
significant share. So, as perpetrators' methods for counterfeiting cheques turn more
sophisticated with each passing day, the launch of Positive Pay is definitely a shot in the arm of
banks.
 New Rule for Cheques
Here are a few points to remember:

[Link] details need to be submitted via email at least 24 hours before

the cheque is presented for clearing.
[Link] excel sheet with the following details needs to be attached in the
email:
– Serial Number
– Your account number
– Cheque number
– Cheque issue date
– Cheque amount
– Name of the payee/Beneficiary name
[Link] information needs to be submitted in English language and the
beneficiary name should be in the exact same manner as written on the
cheque.
 New Rule for Cheques
Here are a few points to remember:

4. Once the bank receives your request, an automatic acknowledgment

email will be sent to you.
5. On receipt of the email from the registered email ID of the cheque
issuer, the Bank will cross-verify the details.
6. The Bank will accept or reject your Positive Pay request and a
confirmation of acceptance or rejection will be sent to the cheque issuer
via email
7. In case of a mismatch, the request will be rejected, and a fresh Positive
Pay request can be submitted after rechecking the cheque details. Please
note that a Positive Pay request needs to originate only from the
registered email ID of the cheque issuer for security reasons.
 Cheque Clearing Cycle
• The PRESENTING BANK where cheques are presented by payee for
deposit in his / her a/c.
• Regional collecting center- to collect all cheques from their presenting
branch.
• Clearing House: To collect cheques from RCC and for settlement of
cheques.
• Drawee’s RCC: Again they collect cheques from the clearing house and
send to their drawee bank.
 Cheque Clearing Cycle
• Drawee Bank: It collects cheques from their RCC and debits the customer
a/c.
• Settlement of Funds: A net settlement is arrived at the clearinghouse and
the debit or credit position of the bank is determined. The payment
process is completed only when the funds are debited from the drawer’s
account and credited to the payee’s account.
• Return Clearing: The cheques returned by drawee Branch for any reason to
Service Branch are returned to presenting Bank as unpaid cheques.
 Section 138 Of Negotiable Instruments Act
• The Negotiable Instruments Act, 1881, Chapter XVII containing Sections
138 to 142 was introduced with the aim of inculcating confidence in the
efficacy of banking operations and giving credibility to negotiable
instruments employed in business transactions.

• If a party issues a cheque as a mode of deferred payment and the payee of

the cheque accepts the same on the faith that he will get his payment on
the due date, then he should not suffer on account of non-payment.

• The penal provisions contained in Sections 138 to 142 of the Act have
been enacted to ensure that obligations undertaken by issuing cheques as
a mode of deferred payment are honoured.
 Section 138 Of Negotiable Instruments Act
Section 138 of the Act provides for circumstances under which a case for the
dishonour of cheques is filed. The ingredients required for complying with
Section 138 are as follows:
• A person must have drawn a cheque for payment of money to another for
the discharge of any debt or other liability;
• that cheque has been presented to the bank within a period of three
months; that cheque is returned by the bank unpaid, either because
insufficient of funds or that it exceeds the amount arranged to be paid
from that account by an agreement made with the bank;
• The payee makes a demand for the payment of the money by giving a
notice in writing to the drawer within 15 days of the receipt of information
from the bank regarding the return of the cheque as unpaid;
• The drawer fails to make payment to the payee within 15 days of the
receipt of the notice.
 Section 138 Of Negotiable Instruments Act
Grounds For Dishonour of Cheques

1. Insufficiency of funds
2. Irregular Signature
3. Alteration
4. Pre-submission of cheque
5. Stale Cheque(after expiry)
6. Stop payment instructions
7. Frozen Account (due to court order)
 Section 138 Of Negotiable Instruments Act
Procedure with regard to Section 138:

1. A legal notice is to be issued to the drawer within 15 days of dishonor of

the cheque by registered post with all relevant facts. The drawer is given a
time of 15 days to make the payment, if the payment is made then the matter
is served and the issue is settled. On the other hand, if the payment is not
made then the complainant is to file a criminal case process under Section
138 of the Act, against the drawer within 30 days from the date of expiry of
15 days specified in the notice, with the concerned magistrate court within
the jurisdiction.
 Section 138 Of Negotiable Instruments Act
Procedure with regard to Section 138:

ii. The complainant or his authorized agent should appear in the witness
box and provide relevant details for filing the case. If the court is satisfied
and finds substance in the complainant, then a summons will be issued
to the accused to appear before the Court.

iii. If after being served with the summons the accused abstains himself from
appearing then the court may issue a bailable warrant. Even after this if the
drawer does not appear a non-bailable warrant may be issued.
 Section 138 Of Negotiable Instruments Act
Procedure with regard to Section 138:

iv. On the appearance of the drawer/accused, he may furnish a bail bond to

ensure his appearance during the trial. After which the plea of the accused is
recorded. In case he pleads guilty, the court will post the matter for
punishment. If the accused, denies the charges then he will be served with a
copy of the complaint.
v. The Complainant may present his evidence by way of affidavit and produce
all documents including the original in support of his complaint. The
complainant will be cross-examined by the accused or his counsel.
vi. The accused will be given an opportunity to lead his evidence. The
accused will also be afforded an opportunity to submit his documents in
support of his case, as well as witnesses in his support. The accused and his
witnesses will be cross-examined by the complainant.
 Section 138 Of Negotiable Instruments Act
Procedure with regard to Section 138:

vi. The accused will be given an opportunity to lead his evidence. The
accused will also be afforded an opportunity to submit his documents in
support of his case, as well as witnesses in his support. The accused and his
witnesses will be cross-examined by the complainant.

vii. The last stage of the proceeding is that of the arguments after which the
court will pass judgment. If the accused is acquitted then the matter
ends, but the complainant can go on further appeal in the High Court,
similarly, if the accused is convicted, he can file an appeal in the Sessions
Court.
It must be noted that the offense under Section 138 of the Act, has been made
compoundable.
 Section 138 Of Negotiable Instruments Act
Recent Supreme Court rulings for speedy disposal of cases under Section
138 of the Act:

In 2017, Delhi High Court in Dayawati v. Yogesh Kumar Gosain took into
account the question of whether an offense under Section 138, which is a
criminally compoundable case, could be settled by mediation.
Verdict:
There is no bar to utilizing the alternate dispute mechanisms including arbitration,
mediation, and conciliation (recognized under Section 89 of Civil Procedure Code,
1908) for the purposes of settling disputes which are the subject matter of offenses
covered under Section 320 of the Cr.P.C. It also stated the proceedings under Section
138 of the Act is distinct from other criminal cases and are really in the nature of a
civil wrong which has been given criminal overtones
 Section 138 Of Negotiable Instruments Act
Recent Supreme Court rulings for speedy disposal of cases under Section
138 of the Act:

Recent amendment:
The Negotiable Instruments (Amendment) Act, 2018 which came into effect on
September 1, 2018, allows the Court trying an offense related to cheque
bouncing, to direct the drawer to pay interim compensation not exceeding 20%
of the cheque amount to the complainant within 60 days of the trial court’s
order to pay such compensation. This interim compensation may be paid either
in a summary trial or a summons case where the drawer pleads not guilty to the
accusation made in the complaint; or upon framing of charge in any other case.
Furthermore, the Amendment also empowers the Appellate Court, to hear
appeals against conviction under s. 138, to direct the appellant to deposit a
minimum of 20 % of the fine/compensation awarded, in addition to interim
compensation.
 Section 138 Of Negotiable Instruments Act
Recent Supreme Court rulings for speedy disposal of cases under Section
138 of the Act:

Recent amendment:
The Negotiable Instruments (Amendment) Act, 2018 which came into effect on
September 1, 2018, allows the Court trying an offense related to cheque
bouncing, to direct the drawer to pay interim compensation not exceeding 20%
of the cheque amount to the complainant within 60 days of the trial court’s
order to pay such compensation. This interim compensation may be paid either
in a summary trial or a summons case where the drawer pleads not guilty to the
accusation made in the complaint; or upon framing of charge in any other case.
Furthermore, the Amendment also empowers the Appellate Court, to hear
appeals against conviction under s. 138, to direct the appellant to deposit a
minimum of 20 % of the fine/compensation awarded, in addition to interim
compensation.
Cheque Truncations System (CTS)
 Cheque Truncations System (CTS)

Cheque Truncation System (CTS) is an efficient,

secure, and faster method of clearing cheques by using
an electronic image of the cheque instead of physically
moving the paper cheque. This system, introduced by
the Reserve Bank of India (RBI), is aimed at reducing
the time required for cheque processing and ensuring
faster settlements.
Definition:
•Cheque truncation refers to the process where a
cheque's physical movement is stopped, and
instead, its electronic image is transmitted to the
clearing house for processing.
•Truncation means the stoppage of the flow of
the physical cheque. The physical cheque
remains with the presenting bank, while an
image is sent for clearing.
Process:
•When a cheque is presented for clearance, an
electronic image of the cheque along with essential
details (MICR code, date, bank branch, amount, etc.)
is captured and sent to the clearinghouse.
•This image is then processed by the clearinghouse
and forwarded to the paying bank for verification and
payment.
Advantages of CTS:
•Faster Processing: Since physical cheques do not have
to move between banks, processing time is greatly
reduced, enabling quicker settlements.
•Cost-Effective: Reduces the cost associated with
transporting cheques physically between bank branches
and clearing centers.
•Reduced Frauds: By using high-security image-capturing
systems, CTS reduces the risk of cheque forgery and
fraud.
•Improved Customer Service: Faster clearance means
customers can access funds more quickly.
•Less Risk of Loss: The risk of losing a cheque during
transit is eliminated since the physical cheque remains
with the presenting bank.
Security Features:
•Cheque images are captured using high-resolution
scanners, and image quality checks are performed to
ensure the clarity of the information.
•Banks and clearinghouses use encryption to ensure the
security of data during transmission.
•Digital signatures are used to authenticate the parties
involved in the truncation process.
Steps in CTS:
• Cheque Deposit: A customer deposits a cheque at the bank.
• Image Capturing: The bank captures the image of the cheque
and relevant details.
• Forward to Clearinghouse: The image and details are sent
electronically to the clearinghouse.
• Verification by Drawee Bank: The clearinghouse forwards the
cheque details to the drawee bank, which verifies the cheque.
• Clearing: Once verified, the drawee bank processes the
payment, and the cheque is cleared.
Regional Coverage:
• CTS was initially launched in major cities like Delhi and Chennai
and later expanded to other regions across India. Today, it
covers almost all of India.
• Impact on Banking:
• Reduction in Cheque Clearing Time: Earlier, cheques could
take several days to clear due to physical movement between
locations. CTS has reduced this to 1-2 working days.
• Interbank Transactions: It facilitates quicker interbank
transactions, benefiting both banks and customers.
• Standardization: Standardization of cheques across banks for
uniform processing under the CTS framework
Understanding NEFT, RTGS, and IMPS: Modern
Fund Transfer Methods
NEW AGE SETTLEMENT SYSTEM
 Introduction
• Overview of online fund transfer systems: NEFT, RTGS, and
IMPS
• Importance of online banking and how technology has
simplified the process
• Key points covered in the presentation
 What is NEFT?
• Full form: National Electronic Funds Transfer
• How it works: Transfers money electronically across banks
• Benefits of NEFT:
• - Available 24x7
• - Easy online/offline transfers
• - No need for physical cheques or DD
• - Ideal for low-value transactions
 What is RTGS?
• Full form: Real-Time Gross Settlement
• How it works: Immediate and real-time fund settlement
• Benefits of RTGS:
• - Ideal for large-value transactions
• - Real-time processing
• - Secure, minimizes counter-party risk
• - No risk of forgery or theft (online transfer)
 What is IMPS?
• Full form: Immediate Mobile Payment Service
• How it works: Instant fund transfer available 24x7, including
bank holidays
• Benefits of IMPS:
• - Instant transfer, even on bank holidays
• - No need for beneficiary’s IFSC code and account number
• - Secure and quick
• - Available for both interbank and intrabank payments
Comparison Between NEFT, RTGS, and IMPS
Points of difference NEFT RTGS IMPS

Full form National Electronic Real-Time Gross Immediate

Funds Transfer Settlement Mobile Payments
Services
Fund settlement Half-hourly batches Real-time Real-time
time
2 hours delay
Service availability Available 24x7, 365 Available 24x7, Available 24x7,
days 365 days 365 days
Payment options Online and offline Online and Online
offline
Process speed Slow Faster Faster
Minimum transfer Re. 1 Rs. 2 lakh Rs. 1
limit
Maximum transfer No limit No limit Rs. 2 lakh
limit (Exception – Rs. 50,000
for cash-based
 NEFT, RTGS and IMPS- Which is better?
Timings
You need to note that the timings for NEFT, RTGS and IMPS transfers will
vary across banks. While RTGS operating timing will depend on the bank and
location, NEFT and IMPS payment and settlement modes are available 24x7.
Network
An essential factor you must note is that both the receiver and sender must be a
part of the same network. It helps in the successful execution of the transfer.
Transaction fee
You might have to pay a separate transaction fee for transferring money.
However, the transaction fee will not apply if the recipient cannot receive your
sent funds.
Payment modes
These fund transfer methods- NEFT, RTGS and IMPS work for online
transactions. But NEFT also allows offline fund transfers. You can fill out an
NEFT transfer form at any bank branch along with all the necessary details to
transfer money.