Money Transfer – Meaning, Types & How It Works (2026 Guide)

Money transfer means sending money from one person or bank account to another, either within India or internationally. Today, money transfers can be done instantly online or through banks and authorised services.

This guide explains types of money transfer, methods, limits, and safety tips in simple terms.

Quick Summary

• Purpose: Send or receive money
• Modes: Online & offline
• Availability: 24×7 (online methods)
• Best for: Personal, business, and family payments

Types of Money Transfer in India

1. UPI Money Transfer

• Instant transfer using UPI ID, mobile number, or QR code
• Works 24×7
• Popular apps: Google Pay, PhonePe, Paytm, BHIM

Best for: Daily small-to-medium payments

2. IMPS (Immediate Payment Service)

• Instant bank-to-bank transfer
• Available 24×7
• Requires account number + IFSC or mobile & MMID

Best for: Urgent transfers

3. NEFT (National Electronic Funds Transfer)

• Works 24×7
• Settled in batches
• Requires account number & IFSC

Best for: Regular bank transfers

4. RTGS (Real Time Gross Settlement)

• Real-time transfer
• Usually for high-value amounts
• Minimum amount generally ₹2 lakh

Best for: Large payments

International Money Transfer

You can send or receive money internationally using:

• Bank wire transfer
• Services like Western Union
• Forex & remittance services

Used mainly for education fees, family support, or business payments.

How to Transfer Money Online (Basic Steps)

1. Choose method (UPI / IMPS / NEFT / RTGS)
2. Enter beneficiary details
3. Enter amount
4. Verify using OTP / UPI PIN
5. Confirm transaction

FAQs

Money Transfer Safety Tips

✔ Double-check beneficiary details
✔ Never share OTP or UPI PIN
✔ Avoid unknown payment links
✔ Save transaction reference number
✔ Use only official bank apps/websites

Conclusion

Money transfer in 2026 is fast, secure, and available 24×7 through UPI, IMPS, NEFT, RTGS, and international services.