With the advancement of digital technology, cashless transactions are increasingly prioritized over cash. Online transfers via smartphone apps or internet banking offer the convenience of transferring money without the need to visit an ATM or bank, making the process easier and faster.

Money transfers can now be done through various platforms, extending beyond bank-to-bank transfers to digital wallets. As a result, transactions involving fund transfers have significantly increased, streamlining financial processes. Previously, individuals had to visit post offices or banks physically to send money before online transfer features became available.

Today, payment systems via transfers are not limited to online shopping but also include offline transactions in stores, often using barcode scanning methods.

Types of Transfers in the Banking Sector

Although transfer services are frequently used, many people are unaware of the different types of transfers available in banking. Here are the various types of transfers:

1. Real-Time Gross Settlement (RTGS)

If you frequently visit banks, you may have encountered the term RTGS when filling out transaction forms. RTGS is used for large transactions, with a minimum amount of IDR 100 million.

However, despite being labeled as "real-time," this system does not process transactions instantly.

It usually takes around 4 hours for funds to reach the recipient's account. Additionally, transactions made after 3 PM will only be processed on the next business day. The transfer fee for RTGS transactions ranges from IDR 25,000 to IDR 50,000.

2. Clearing (Kliring)

Similar to RTGS, the Clearing system is designed for large fund transfers, with a daily transfer limit of IDR 500 million. The process takes approximately 2 to 3 business days. Before initiating a transfer, the bank verifies the account balance to ensure sufficient funds.

Unlike direct transfers to the recipient’s account, funds in the Clearing system are first sent to Bank Indonesia before being forwarded to the recipient’s bank. The transfer fee via Clearing ranges from IDR 3,500 to IDR 5,000.
 

Read: Neo Savings and NOW Savings, What's the Difference?

3. Real-Time Online Transfer

You may already be familiar with this transfer method, which is more convenient and faster. Money transfers can be easily done via smartphones or internet banking, with transactions processed in real-time. Funds are sent immediately once the transfer is initiated.

This method allows transfers starting from IDR 10,000 to certain bank accounts. However, for larger amounts, alternative transfer methods are required, as online transfers are limited to IDR 50 million per transaction.

It is easier to transfer money to accounts within the same bank since no fees are charged. However, interbank transfers incur an administrative fee per transaction.

Some banks offer free interbank transfers. One way to transfer money between banks without fees is by choosing a bank that provides free transfer services, such as Bank Neo Commerce, which allows free interbank transfers within a certain quota.

4. BI Fast

BI Fast, introduced by Bank Indonesia, is a national retail payment system infrastructure designed to facilitate real-time, secure, efficient payments accessible 24/7.

Bank Indonesia launched BI Fast because the existing Bank Indonesia National Clearing System (SKNBI) does not fully meet the public's needs due to limited service hours, delayed fund transfers, and inadequate payment channels, reducing the convenience of cashless transactions.

Additionally, BI Fast aims to enhance the resilience of the national retail payment system by offering an alternative infrastructure.
 

Read: Still Confused About Opening a neobank Account? Here's How!

Advantages of BI Fast Transfers

BI Fast offers the following benefits:

• Available 24/7: Real-time transactions at both the bank and customer levels.
   
• Comprehensive Services: Covers various payment instruments and channels.
   
• Enhanced Security: Features fraud detection and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT).
   
• Efficiency: Uses proxy addresses as alternative account identifiers.
   
• Lower Administrative Fees:

BI applies two pricing schemes for BI Fast transfers:

1. From BI to Participants: BI charges participants IDR 19.00 per transaction.
    
2. From Participants to Customers: Participants may charge customers a maximum of IDR 2,500 per transaction.

These transaction fees will be gradually reduced based on periodic evaluations.

For the initial phase, BI Fast has a maximum transaction limit of IDR 250 million per transaction. These fees and limits are determined by BI’s policies.

How Much Are Interbank Transfer Fees?

In general, interbank transfer fees are relatively similar. Here’s an estimated breakdown:

You can transfer between banks for free according to the Neo Membership level quota by becoming a neobank customer. In addition, you can also transfer money to other customers via chat in the application. Without having to copy the account number.

Download neobank on  PlayStore or App Store now!

Neo Membership terms & conditions, click Transfer or https://bit.ly/neomembership & check your Neo Membership level at https://bit.ly/neomembershipgift

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PT Bank Neo Commerce Tbk is licensed and supervised by the Indonesia Financial Service Authority (OJK) and Bank Indonesia (BI), and an insured member of Deposit Insurance Corporation (LPS).