Domestic Money Transfer (DMT)

Domestic Money Transfer (DMT)

Domestic Money Transfer (DMT) is a financial service that enables individuals to transfer money within a country quickly and securely. It is an essential service for people who need to send funds to family, pay bills, or make business transactions. DMT is widely used by individuals who do not have access to formal banking services, allowing them to send money easily through banks, online platforms, and retail agents.

How Domestic Money Transfer Works

DMT services are designed to facilitate easy and secure transactions through multiple channels:

Bank Transfers

Money can be transferred from one bank account to another using different methods:

• NEFT (National Electronic Funds Transfer): Processes transactions in batches and is commonly used for scheduled payments.
• RTGS (Real-Time Gross Settlement): Used for high-value transactions, where funds are transferred instantly.
• IMPS (Immediate Payment Service): A real-time money transfer system that operates 24/7, including weekends and holidays.

Mobile Wallets

Digital payment platforms allow users to send and receive money instantly. These wallets are linked to bank accounts and provide a convenient way to manage transactions without needing physical cash.

Cash-to-Bank Account Transfers

In rural and remote areas, individuals can visit authorized agents or retailers to deposit cash, which is then transferred to the recipient’s bank account. This service is particularly beneficial for people who do not have access to banking facilities.

UPI (Unified Payments Interface)

UPI allows instant money transfers using mobile numbers, virtual payment addresses (VPA), or QR codes. It is one of the most popular and widely used methods due to its ease of use and real-time processing.