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Wondering, ‘Can I transfer money from an ATM?’, the answer is yes and this option can come in handy when you don’t have internet access and don’t want to make a branch visit. 

Moreover, it’s an easy process very similar to withdrawing cash. That’s not all. Most banks also provide a plethora of services, making it a comprehensive option. Read on for a quick step-by-step guide and more. 

How to Transfer Money from an ATM? 

Here are the simple steps you need to follow: 

• Step 1: Visit your nearest ATM
• Step 2: Insert your debit/ATM card
• Step 3: Select your preferred language 
• Step 4: Enter your ATM PIN 
• Step 5: Select the ‘Fund Transfer’ option 
• Step 6: Enter the beneficiary’s required bank details 
• Step 7: Enter the amount and click on ‘Yes’ 

Once the transaction is complete, you will get a notification on the email ID and mobile number linked to the bank account. 

If you don’t confirm the payment within a certain time frame, your payment won’t go through. Thankfully, you can just repeat the above steps and finish it. You can also try other options, such as:

• IMPS
• NEFT
• UPI
• RTGS

However, you will need internet access if you plan on using these options online. If you cannot, visit your bank’s branch and complete the process offline with assistance from an executive. Note that offline transfer can take time and may not get reflected on the same day.

Also Read: How To Transfer Cash From a Credit Card

Benefits of ATM Money Transfer 

Now that you know how to transfer money from an ATM card to another account, here are some of the top benefits you can enjoy:

• You can avail of this facility without any banking hour restrictions 
• You can send money even on bank holidays
• You can use other bank’s ATM at nominal charges
• You don’t have to rely on a banking executive to conduct fund transfer
• You can avoid long bank queues 
• You can transfer funds immediately without having to wait

Other Services Available at the ATM

Along with fund transfers, here are other services you can enjoy: 

• Cash Withdrawal: Get instant access to funds from your account without any hassles
• Balance Enquiry: Know your savings and current account balance without additional charges
• Cash Deposit: Ensure sufficient balance in your account by depositing cash without visiting the branch
• Bill Payment and Recharge: Pay your utility bills in just a few clicks
• Register for Aadhaar: Easily link your Aadhaar and bank account, which is mandatory
• Insurance Premium Payment: Easily pay your premium and ensure your policy doesn’t lapse
• ATM PIN Generation: Set your PIN for debit card and make easy payments hassle free
• Open an FD Account: Transfer funds in a fixed deposit account easily and receive the documents at your registered address
• Mutual Fund Investment: Invest in MFs directly from your account, provided you have registered for the service

In conclusion, you can use an ATM for many other services besides transferring funds. However, you must have sufficient balance to be able to enjoy the services. Thankfully, if you are short on funds, you can apply for an Online Personal Loan and get financing of up to ₹5 lakhs in just a few clicks.

Applying on Fibe is easier and more convenient due to minimum paperwork, easy-to-meet eligibility criteria and a 100% digital application process. Moreover, you get funds at an affordable interest rate starting at just 2% per month, which makes it a suitable option. Download the Instant Personal Loan App or visit our website to apply now! 

FAQs on ATM Money Transfer 

How can I transfer money from an ATM to another bank?

Select the ‘Fund Transfer’ option after entering your PIN. After that, you just have to provide the required details and click on ‘confirm’.  

How can I transfer money from an ATM to a mobile number?

Here is a step-by-step guide you can follow: 

• Step 1: Enter your card and select the language 
• Step 2: Enter your PIN
• Step 3: Click on IMPS fund transfer
• Step 4: Enter mobile number and MMID
• Step 5: Enter the amount and confirm

Can I transfer money from an ATM card to another account online?

Yes. You can use a payment app but ensure that you are registered for the services. 

What is the maximum amount that I can transfer through an ATM?

There isn’t a fixed ATM transfer limit. Thus, it depends on your bank policies and card type. 

mPassbook or mobile passbook is a facility banks provide to their customers, allowing them to keep track of their accounts. It connects your savings account or current account to your mobile, allowing you to access your statement of account instantly and remotely. This means you can know your account status anytime, without making any branch visits.

Read on to learn more about mobile passbooks. 

What is a mPassbook?

In simple terms, mPassbook is a passbook or statement of account you can access on your mobile. Most banks now offer this facility for customers who prefer digital banking facilities. Access to your bank statement on your phone makes tracking transactions easier and quicker. Your online passbook will generally contain the following details: 

• Account holder details, such as name, address, registered phone number
• Account details, such as account number and customer ID
• Bank details, such as name, branch address and IFSC
• Account balance and transaction details, including amount, date, time and ID

Features and Benefits of mPassbook

Here are some top features of digital passbooks: 

• Easy Access: Having your account statement on your mobile allows you to have all your banking and transaction details available in just a few clicks
• Save Time: With an electronic passbook, you can avoid multiple visits to the bank and keep up to date with your transaction data in a few minutes
• 24*7 Availability: You can access your passbook even outside of banking hours with a mobile passbook
• Higher Security: Unlike the physical passbook, only the account holder can access your details through the MPIN-based login
• Instant Statement: Download an instant soft copy of your account statement without any hassle
• Real-Time Updates: Know your account balance instantly after any transaction 
• No Additional Fees: Banks don’t levy any charges for this facility, making it a pocket-friendly option

In addition to the above features, an mPassbook enables you to complete verification or tax filing whenever required, without any hassles. This is because you get an instant record of your transactions along with your account details which are generally required for completing the process. 

Moreover, having a digital passbook reduces the risk of loss or theft. The instant access also allows you to report any suspicious activity immediately and ensures prompt action is taken.

Also Read: What Is Bank Statement?

Pre-requisites for mPasbook

If you want to enjoy the digital passbook facility, here’s what you need:

• A smartphone with the required software updates for the bank’s app
• You need to register for mobile banking 
• You must link your mobile number to your bank account
• You must have your user ID and password ready if your bank requires it for login

How to Download and Register for mPassbook

Here are the steps you can follow to download and register on your bank’s mobile app

• Step 1: Go to the Google Play Store (for Android) or Apple App Store (for iOS)  
• Step 2: Install your bank’s mobile app 
• Step 3: Launch the app, once installed
• Step 4: Select your preferred language
• Step 5: Enter your registered mobile number
• Step 6: Enter OTP for verification
• Step 7: Enter your customer ID and other required details
• Step 8: Set up your MPIN
• Step 9: Log in with the MPIN 

Now that you know how to download and register for your bank’s app and get a mobile passbook, check your account balance and transaction details regularly. If your balance is low or you need urgent funds to bridge monetary gaps, apply for an Instant Personal Loan.

You can get up to ₹5 lakhs at an attractive interest rate starting at 2% per month. Moreover, with easy-to-meet eligibility criteria, instant disbursal and no pre-closure charges, you can get funds without any hassles. Download the Fibe Instant Loan App or visit our website to apply now! 

FAQs on mPassbook

What is the use of mPassbook?

It is a digital version of a physical passbook. With it, you can check your account balance and track your transactions in just a few minutes, without visiting the bank. 

What is the difference between a passbook and mPassbook?

mPassbook is an electronic version of your physical passbook. It is available on your mobile through the bank’s official app.

Can I get a passbook in one day?

Yes, both physical and electronic passbooks are available in one day. 

Is an online passbook available?

Yes, most banks have apps that allow you to access your passbook online through your mobile.

Cheque bounce charges are a penalty that you must pay when the cheque fails to provide the promised amount. Writing a cheque is an agreement to pay the mentioned sum bound by the law. So, when you cannot honour it, these charges are a result. 

This may happen when your cheque payment is not cleared due to insufficient funds. This is called a ‘dishonoured’ or ‘bounced’ cheque. This is a punishable offence by law that can lead to a fine or imprisonment, depending on the circumstances.

Read on to know about cheque bounce charges, penalties, common reasons to avoid them and more. 

Penalty and Punishments in India

Dishonouring a cheque is a punishable offence under Section 138 of the Negotiable Instruments Act of 1881. According to this, you may have to face one of the following penalties:

• A fine of twice the cheque’s amount
• 2 years of imprisonment
• Maybe both, depending on the court’s order

Hence, you must maintain the required balance before issuing the cheque.

Common Reasons for Cheque Bounce

Knowing when and why your cheque may bounce helps you avoid such circumstances. Here are some reasons to keep in mind. 

• If your account does not have the required amount mentioned on the cheque
• If the payee presents the cheque after three months of its issuing date
• If the payee deposits it after the expiry date
• If there is overwriting on the cheque
• If the cheque gets damaged and the details are not visible
• If the drawer’s signatures are unclear or mismatched
• If the amount written in digits and words does not match
• If the cheque is post-dated
• If the bank has suspended the account

Also Read: What Is a Post-Dated Cheque?

New RBI Rules for Cheque Bounce 

In August 2021, the Reserve Bank of India announced a new rule related to bounce cheques. Here are its key pointers: 

• Maintaining a minimum account balance is important if you rely on cheques for financial transactions
• The National Automated Clearing House will remain operational 24/7 
• This rule is applicable to all government as well as private-sector banks

This allows you to clear the cheque faster.

Also Read: Fact about Cheque Leaf

Cheque Bounce Charges of Top Banks

Here is an overview of the cheque bounce penalty that applies to both parties of transactions of a few leading banks in India:

Bank	Outward	Inward	Technical Reason
State Bank of India	Up to ₹1 lakh: ₹150 + GST    Above ₹1 lakh: ₹250 + GST	For SME customers:₹500 for first 3 cheques₹1,000 for 4th cheques For other customers:₹500 + GST	₹150 + GST
ICICI Bank	₹200 for financial reasons	₹500 for financial reasons and ₹50 for non-financial reasons except for signature verification	₹200 for NACH Returns
HDFC Bank	1st cheque: ₹4502nd cheque: ₹5003rd cheque onwards: ₹550	₹350 per instance	₹50 for mismatched signs, post-dated, etc. and ₹500 for NACH Returns
Kotak Mahindra Bank	Up ₹350 for first return of the month and ₹750 on the second return and onwards	Up ₹1,000	₹50
Punjab National Bank	₹150 for up to ₹1 lakh₹250 from ₹1 lakh to ₹10 lakhs₹150 for over ₹10 lakhs	₹200 for up to ₹1 lakh₹500 from ₹1 lakh to ₹1 crores₹2,000 for over ₹1 crores	No charge
Axis Bank	₹500 per instance	₹50 for the 1st return₹100 from the 2nd return onward	No charge

Note that all these bank cheque bounce charges exclude GST and other applicable taxes. Also, these fees may vary at the discretion of the bank.

Now that you know how high the bank cheque bounce penalty can go, avoid such instances for better financial health. One way to manage such situations is to get an Instant Personal Loan if you have an insufficient balance.

With Fibe Instant Cash Loan, enjoy up to ₹5 lakhs financing for your umpteen requirements at attractive interest rates, minimum paperwork and quick disbursal. Moreover, we have easy-to-meet eligibility criteria that make the borrowing process easy. To apply, create an account on our website or download our Personal Loan App!

FAQs on Charges on Cheque Bounce 

How much does the bank charge for bounced cheques?

These charges vary from one bank to another. Moreover, it depends on whether it’s an inward or outward deposit.

What is the new rule for cheque bounce?

The RBI issued the latest cheque bounce notice in August of 2021, which states the following:

• All individuals must maintain sufficient balance for the cheque to clear to avoid a penalty
• The National Automated Clearing House (NACH) will remain operational 24X7

How can I avoid paying a cheque bounce charge?

Here are some tips to avoid these charges:

• Ensure that you maintain an adequate balance in your account
• Check the details on the cheque
• Make sure not to issue post-dated cheques if you don’t have sufficient balance
• Communicate with the recipient
• Avoid overwriting cheques
• Write the amount in words and figures accurately
• Ensure there’s no mismatch between the amount in words and figures
• Avoid making any mistakes when signing the cheque

Is it possible to file an FIR for cheque bounce?

Yes. It is possible to file an FIR against the issuer under Section 420 or 406 of the Indian Penal Code (IPC).

How many times is it possible for a cheque to bounce?

There is no limit, but most banks warn you 3 times before filing a complaint. Nevertheless, it’s best to add funds to your account to avoid cheque bounce or any legal trouble. 

What is the penalty for a cheque bounce in India?

The charges depend on the bank, ranging up to ₹750. 

What happens if I don’t pay the check bounce charges?

If you don’t pay the cheque return charges within 15 days, your bank can take legal action against you. 

Do check bounce charges affect my credit score?

No, it doesn’t affect your credit score directly. However, if the cheque is for paying an EMI, the delayed payment can impact your score.

Pay orders and demand drafts are both prepaid banking instruments used to make secure payments, but they are not the same. A pay order is usually used for payments within the same city or local banking area, while a demand draft is commonly used to transfer money to another city or location. Since both are issued by banks only after receiving the amount upfront, they are considered safer than personal cheques.  
Choosing a pay order vs demand draft depends on your payment requirements and several other factors. It includes clearance time, amount, acceptability and more. Although their use has reduced over the years, several merchants and individuals still rely on them. As such, knowing the difference between a pay order and a demand draft can help you choose the right option when needed. 

Read on to know their differences, features and more. 

What is a Pay Order? 

Pay order is also called a banker’s cheque that allows payment to an unknown third party. It is a payment instrument issued by the bank on your behalf. Using this, you can make secure and cashless payments without the banking details of the beneficiary. 
 
To generate it, you have to give the required amount in cash or cheque to the banking executive. Upon deposit, the same amount will get remitted into the beneficiary’s account. Now that you know the meaning of pay order, here are some other features: 

• Only the bank can issue a pay order 

• Once issued, there is no provision to cancel it 

• It may take up to 24 hours to process a pay order 

• You must pay the amount in cash or another accepted mode to place a request for these cheques 

• Only the beneficiary receives payment from it, making it a secure option 

• It is valid for three months from its issuing date 

• It is payable only in the issuing bank branch within the same city 

• It is a non-negotiable or pre-paid instrument with zero credit risk 

What is a Demand Draft? 

DD is a negotiable instrument that the bank issues at your request. This allows you to make payments without the risk of cheque bounce or dishonour. 

Similar to the pay order, it requires you to pay beforehand to make payments to third-party beneficiaries without their banking details. However, unlike a pay order, it allows you to make payments in any bank branch, even outside the city. Here’s an overview of key features of demand drafts. 

• It includes payee and beneficiary details 

• It is a secure payment option that allows individuals to pay funds directly 

• This instrument requires cash payment beforehand, which reduces the risk of dishonour and payment bounce 

• If the value is over ₹50,000, then you must pay by cheque and provide a PAN card 

• You must process a DD within the validity period of 3 months once issued 

• It may take a few hours to process 

• It allows you to make payments in international currency as well 

Also Read: What is a demand draft in banking? 

What’s the Difference Between Demand Draft and Pay Order? 

Here is an overview of the difference between a pay order and a demand draft. 

Table Mentioned 

When Should You Use a Pay Order or Demand Draft? 

• Use a pay order or demand draft when you need to make a secure payment. 

• These instruments are useful when the receiver wants a guaranteed payment from the bank. 

• Use them when making payments for: 

• School, college, or university fees 

• Government charges or application fees 

• Property or rent-related payments 

• Business transactions 

• Tender or contract payments 

• Loan or insurance-related payments 

• A pay order is usually used for payments within the same city or local area. 

• A demand draft is commonly used for payments to someone in a different city or location. 

• They are preferred when the receiver does not accept: 

• Cash 

• Personal cheques 

• Online transfers 

• They help reduce the risk of: 

• Cheque bounce 

• Payment failure 

• Delayed settlement 

• Use a pay order or demand draft when you need proof of payment for official or financial records. 

Cancellation and Reissuance of Pay Order and Demand Draft 

• Cancellation Request 

• Submit a written request at the issuing branch with the original instrument. 

• Provide valid ID and account details for refund. 

• If lost, submit an indemnity/declaration as per bank requirements. 

• Cancellation Process 

• Bank verifies instrument status (must be unpaid/uncleared). 

• Additional checks may apply for third-party instruments. 

• Upon approval, the instrument is cancelled and refund is initiated. 

• Refund Timeline 

• 1–3 working days if original instrument is submitted. 

• Longer timelines for lost instruments due to additional verification. 

• Refund is credited to the account or via approved mode. 

• Reissuance Request 

• Submit a written request for cases like errors, expiry, damage, or loss. 

• Original instrument required (except in case of loss with indemnity). 

• Reissuance Process 

• Bank verifies details and unpaid status. 

• New instrument issued with updated details and fresh validity. 

• Charges 

• Applicable cancellation and reissuance fees as per bank policy. 

• Additional charges may apply for duplicate issuance or indemnity. 

• Taxes levied as applicable. 

 
Knowing the features of pay order vs demand draft, you can easily choose the most convenient fund transfer option. However, if you do not have sufficient funds in your account, apply for a Fibe Instant Personal Loan to maintain the balance for clearing your payment. 

You can avail of up to ₹10 lakhs in a matter of minutes and at an attractive interest rate. In addition, you can enjoy a host of benefits, such as a complete digital application, minimum documents and no pre-closure charges. Download the Personal Loan App or go to our website to get started! 

FAQs on Pay Order vs Demand Draft 

What is the purpose of a pay order? 

A pay order is a non-negotiable financial instrument that allows payments within the same city. This is a secure method acknowledged by the bank, which gives a guarantee of payment to the receiver. 

How long does it take for a pay order to be clear? 

Pay orders are generally cleared within 24 hours of deposit but can remain valid for up to 3 months after issuance. 

Can a pay order be cancelled? 

No, once issued by the bank, there is no option to cancel a pay order. 

Is a pay order and a cheque the same? 

A pay order is a type of cheque that the banking executive drafts, while account holders can write a cheque themselves. 

Is pay order and DD the same thing? 

No, PO is useful to transfer funds within the same city, but DD is valid across India. One thing that both have in common is that you have to request the bank to issue it. 

Is a pay order safe? 

Yes, it’s a secure method of payment transfer as it is issued by the bank

If you’re wondering how to send money without sharing your account number, MMID is what you need. It’s a simple and secure way to transfer funds using mobile banking. MMID full form is Mobile Money Identifier. It’s a 7-digit unique code linked to your mobile number and bank account.

With this code, you can make instant Immediate Payment Service (IMPS) transfers without needing an account number or IFSC. This is a fund transfer facility offered by the National Payments Corporation of India (NPCI). In a nutshell, MMID means a convenient way to enable real-time mobile transactions.

Read on to know what is MMID in bank, how many digit code is Mobile Money Identifier, its process, benefits, uses and more.

What is MMID Number?

A Mobile Money Identifier number is a 7-digit code that is required to execute IMPS transfers. This is a unique identifier linked to your mobile number. You can make convenient transactions using MMID for mobile banking and make instant fund transfers, bill payments, shopping and more. 

Moreover, having MMID replaces the need to have the payee’s details, such as:

• Account number
• Branch name
• IFSC code 

How to Find Your MMID Number?

Before generating a new MMID, check if one is already assigned. Most banks create it automatically when you activate mobile banking. You can find your MMID number easily by following these steps:

• Open your bank’s mobile app or log in through net banking
• Go to the section for mobile services or IMPS
• Look for the option that lets you view or get your MMID
• Follow the on-screen instructions provided by your bank

Your MMID will either be displayed on the screen or sent to your registered mobile number. If no MMID is available, you’ll be prompted to generate one.

How to Generate MMID? 

You can generate MMID quickly using 3 simple methods – mobile banking, net banking or by calling customer care. Here’s a quick look at all 3 options:

• Mobile Banking: Use your bank’s mobile app to log in and generate MMID instantly.
• Net Banking: Log in to your bank’s website and request an MMID online.
• Customer Care: Call from your registered mobile number and request MMID without internet.

Now, let’s look at the steps for each method in detail:

Via Mobile Banking

Follow these steps if you want to generate MMID on your phone instantly: 

• Step 1: Log in to your bank’s mobile banking app
• Step 2: Go to ‘Accounts’
• Step 3: Select the ‘Generate MMID’ option
• Step 4: Enter the details and confirm

Via Net Banking

Following these steps, you can also generate MMID on a desktop via net banking:

• Step 1: Visit your bank’s net banking portal
• Step 2: Log in with your credentials 
• Step 3: Go to the main page 
• Step 4: Select the ‘Generate MMID’ option
• Step 5: Enter the required details 
• Step 6: Verify your details 

Though Customer Care

To generate MMID without internet access, you can follow these steps:

• Step 1: Call the bank’s customer service number
• Step 2: Choose your preferred banking language
• Step 3: Follow the instructions to request the MMID-generating service 
• Step 4: Share your details 

After you have successfully completed the steps, your MMID will be generated and shared on the registered mobile number. Note that you need to call from your registered mobile number. 

Advantages of Mobile Money Identifier (MMID)

Know these benefits to understand the meaning of MMID:

• It makes digital fund transfers simplified 
• It allows interbank payments 
• It allows real-time payment through IMPS
• It reduces the risk of fraud and theft when making third-party payments
• It adds convenience to the fund transfer process 

How to Use MMID for Funds Transfer?

Here are the mobile banking steps you can follow when sending funds through MMID:

• Step 1: Log in to your mobile banking app 
• Step 2: Go to the ‘Fund Transfer’ section 
• Step 3: Select the ‘IMPS’ option
• Step 4: Enter the beneficiary’s MMID and mobile number
• Step 5: Enter the amount 
• Step 6: Click on ’Confirm’
• Step 7: Verify your payment with OPT or MPIN 

After verification, all the parties will get an SMS notification to confirm the payment. 

Key Points to Remember When Using MMID 

Now that you know how to use MMID, here are some facts to know. 

• The payee and the payer must be registered for the MMID and mobile banking
• You must confirm the IMPS charges with your bank
• You must have SMS services enabled on your bank’s registered mobile number
• The maximum daily IMPS limit is ₹5 lakhs 

Using these points, you can operate the IMPS fund transfer facility on your mobile banking app to send and receive funds. MMID makes fund transfers fast and convenient without the need to visit your nearest bank branch. Similarly, if you need urgent finance to manage your planned or unplanned needs, apply for a Quick Personal Loan.  

Get up to ₹5 lakhs with a completely digital process, and enjoy attractive interest rates, quick approval and other benefits. Moreover, you can close your loan anytime without additional fees and charges. So, download our Personal Loan App or register on our website to apply! 

FAQs on MMID

How do I find my MMID number?

You can find your MMID by contacting your bank’s customer support or through mobile banking. 

Is MMID and IFSC code the same?

No, the MMID number and IFSC code are different details used to make fund transfers. The MMID code is an option you can use instead of the payee’s account number and IFSC code. 

What is a 7-digit MMID code?

MMID is a 7-digit unique code that allows immediate transfer of funds using IMPS through multiple channels. 

How do I transfer money using MMID?

To use the MMID code, you must initiate a fund transfer through IMPS on your mobile banking app.

There are types of cheques that can’t be cashed immediately. One such example is a PDC cheque. The PDC full form is Post-Dated Cheque. These cheques are legally valid in India for 3 months from the date written on them.

As per RBI rules, banks are not allowed to process a PDC cheque before the date mentioned. If someone tries to encash it early, it will be declined. That’s why it’s important to know the post dated cheque meaning, its validity and banking rules before issuing or accepting one.

What is a Post-Dated Cheque?

A PDC cheque is a regular cheque, but with a future date written on it. This means the money can only be withdrawn or deposited on or after that date, not before. It’s regularly used for scheduled payments like rent, EMIs or loan installments.

The PDC meaning is simple. It lets you confirm a future payment in advance and keeps things on record. And knowing how to fill one correctly will make it easier to manage your recurring payments. 

How to Write a Post-dated Cheque? 

Writing a post-dated cheque is the same as writing a regular cheque. The only change is the date you put on it. Here’s how to write one: 

• Fill in the payee’s name
• Enter the amount in both words and numbers
• Sign the cheque clearly
• Put a future date instead of today’s date

Assume it’s the 5th of the month. Your salary will be credited on the 10th. You can write a post-dated cheque for the 10th. This way, it won’t be cashed out early. It gives you time and assures the receiver of payment.

What is the Post-dated Cheque Validity? 

Here are a few essential points to know:

• As per the rule, a cheque written for a future date also comes with a validity period
• The validity for these cheques is usually 3 months from the date of issue
• If you draft a cheque for 1 January 2024, it will remain valid until 31 March 2024
• If you present this cheque before or after the aforementioned dates, the bank may not honour it

What is the Rule for Writing a Post-dated Cheque?

Here are some simple rules you can follow when writing a PDC cheque:

• Use a future date: Do not write the current date. Always mention a future date. Ideally, a date when you want the cheque to be encashed.
• Fill in other details as usual: Write the payee’s name, amount in words and numbers and sign the cheque like you normally would.
• Inform your bank: Share written instructions with your bank about the encashment date. This prevents the cheque from being processed too early.
• Avoid penalties: Sending clear instructions helps avoid accidental clearance, which can lead to penalties or overdraft fees.

Also Read: What is Cheque Leaf?

What are the Penalties for Dishonouring a Post-Dated Cheque?

As per Section 138 of the Negotiable Instruments Act, all cheques with a future date fall under legal tender. So, if your cheque bounces, you will be facing legal penalties for dishonouring it, which are as follows: 

• Imprisonment of a minimum of 1 and a maximum of 2 years
• Fine equal to or double the cheque amount
• Both, depending on the case

Things to Keep in Mind When Writing a Post-Dated Cheque

If you are making a payment using post-dated cheques, keep the following points in mind. 

• Understand the legal implications of what happens if a cheque is post-dated
• Send written instructions to your bank for the date of the payment
• Maintain a sufficient balance before the encashment date
• Write the details carefully and recheck them before sending the cheque 
• Make sure the cheque gets encashed on or after the mentioned date
• Check with your bank to ensure they allow the deposit of such cheques
• For cheques made on the company’s behalf, make sure the company’s accounts books have a record of this transaction

With these facts in mind, you can avoid any discrepancies or errors that can hinder the payment through a post-dated cheque. But if you do not have a sufficient balance in your account to clear your cheque, then taking a personal loan from Fibe can help you get the required funds. 

At Fibe, you can apply for a 100% digital Online Personal Loan of up to ₹5 lakhs at an affordable interest rate. With 2 minutes of disbursal, minimum paperwork and no pre-approved charges, you can opt for a loan to manage all your urgent financial needs. Download our Personal Loan App or visit our website to apply now! 

FAQs on Post-Dated Cheques

Why is it called a post-dated cheque?

This is a cheque dated for deposit or encashment at any future date. Since the funds are withdrawn after the date mentioned on the cheques, they are called post-dated cheques. 

What is the time limit for a post-dated cheque?

Once drafted, these cheques are valid for 3 months.

Choosing between IMPS vs NEFT electronic fund transfer options depends on multiple factors. These two options serve the same goal of making convenient fund transfers but have many distinct features and benefits. 

Old-school fund transfer methods allow you to send and receive a higher amount through multiple channels. Therefore, many private and government agencies rely on these options for fund transfer.

Read on to learn more about NEFT vs IMPS differences and choose a convenient option.

What Do You Mean by IMPS and NEFT?

IMPS stands for Immediate Payments Service, which is an electronic payment facility established by the National Payments Corporation of India (NPCI). NEFT, on the other 

hand is an acronym for National Electronic Fund Transfer, launched by the RBI. 

Both these fund transfer options allow you to make interbank transactions nationwide. All you have to do is provide basic details of the beneficiary available, and you can choose from either option at your convenience. 

All You Need to Know About IMPS vs NEFT 

Here are a few essential pointers you must know to understand the features of IMPS vs NEFT.

• Availability: Both mechanisms of fund transfer are available round the clock, including bank holidays 
• Timing: IMPS facility allows real-time transfer, but NEFT conducts transfer in half-hourly batches 
• Transfer Limit: The maximum amount for IMPS is ₹5 lakhs, but NEFT has no upper limit 
• Transaction Charges: Know that IMPS vs NEFT charges are levied based on the bank’s policy 
• Details Required: IMPS allows transfer using the Mobile Money Identifier (MMID) and account details, but for NEFT, you only need account details  

In addition, here is a tabulated overview of IMPS vs NEFT: 

Particular	IMPS	NEFT
Mode of transfer	Online	Offline and online
Settlement Type	Real-time	Half-hour
Time taken	Instant	Batches of half-hour
Limit	Minimum: ₹1 Maximum: ₹5 lakhs	Minimum: ₹1 Maximum: As per the bank’s discretion
Charges	Up to ₹10,000: ₹2.5 + GST₹10,001 – ₹1 lac: ₹5 + GST₹1 lac – ₹2 lakhs: ₹15 + GST	Up to ₹10,000: ₹2.5 + GST₹10,001 – ₹1 lac: ₹5 + GST₹1 lac – ₹2 lakhs: ₹15 + GST Above ₹2 lakhs: ₹25 + GST

How to Transfer Funds Using IMPS and NEFT

To initiate a fund transfer with IMPS, follow these steps. 

• Step 1: Choose the net or mobile banking option 
• Step 2: Select ‘Fund Transfer’
• Step 3: Opt for ‘IMPS’ 
• Step 4: Select ‘Add beneficiary’ 
• Step 5: Enter the required details and amount
• Step 6: Submit the details 
• Step 7: Verify the transfer with OTP

If you choose IMPS, here are the steps you must follow.  

• Step 1: Log in to your net banking account 
• Step 2: Click on ‘Add beneficiary’
• Step 3: Enter beneficiary details, such as name, account type, account number, and IFSC information
• Step 4: Select the NEFT option 
• Step 5: Enter the amount and submit

Also Read: Difference Between NEFT and RTGS

Once you add the new beneficiary, you must wait for a period of 30 minutes before proceeding ahead. However, there is no such waiting time for IMPS. So, consider this criterion when choosing IMPS vs NEFT. 

Which is Better: IMPS vs NEFT

While both options have equal security and reliability, you must consider all the factors, such as time taken, amount and charges, when comparing IMPS vs NEFT. You can choose either option to make a transaction for up to ₹5 lakhs. But for a higher amount, you can opt for NEFT. 

Since the charges for both are the same, you will pay an equal fee for both facilities. However, you must consider the processing time, as you may have the advantage of instant transfer via IMPS. Nevertheless, if it’s not an urgent payment, you can also choose NEFT.

In conclusion, you can choose from either option to make a fund transfer depending on the urgency and your fund transfer limit. However, if you require urgent funds for any financial emergency or otherwise, you can apply at Fibe. 

With Fibe Personal Loan Online, you can get up to ₹5 lakhs quickly. A 100% digital application process, affordable interest rates and convenient tenure options are a few added perks you stand to enjoy when you opt for Fibe. Download the Personal Loan App or visit our website to apply now!

FAQs on IMPS vs NEFT

Is IMPS chargeable?

Yes, banks have variable charges for IMPS fund transfers depending on your amount. However, these charges only apply for outward IMPS transactions, and inward IMPS transfers have no fees. 

Is NEFT free?

No, you must pay some fees to facilitate NEFT transactions, which depends on your transfer amount. 

What is the limit of IMPS?

You can send a minimum ₹1 up to ₹5 lakhs through IMPS. However, the upper limit for fund transfers is subject to bank policy. 

Does IMPS have a daily limit?

Effective February 1, 2022, the daily maximum fund transfer limit for IMPS is up to ₹5 lakhs.