Check Out The Types Of Electronic Funds Transfer In India


BANGALORE:  The primitive means of using money as a medium of exchange are direct currency transfer, demand draft, cheque or money order. Today, when the sender and receiver of money are geographically distant, the modern, fast, safe, and cost effective way to exchange money is through electronic fund transfer facility.

The electronic fund transfer method is gaining popularity as it allows users to transfer funds from homes and offices at their comfort and ease.

This paperless money transfer method is safe, efficient and instant. The amount gets debited/credited at the same time saving the physical effort and time investment of both the parties involved. Its error free as a transaction is only authorized with complete details like accurate account numbers of the beneficiary and the targets banks particular IFSC (Indian Financial System Code). IFSC is an alphanumeric 11-digit code that functions as a unique address for a specific bank branch.

In this electronic method, one can opt for the following ways of transferring funds between two accounts:

 Transfer funds into your own linked accounts of the same bank network

 Transfer funds into different account of the same bank.

 Transfer funds into different bank’s accounts using NEFT

 Transfer funds into other bank accounts using RTGS

 Transfer funds into various accounts using IMPS

NEFT or National Electronic Funds Transfer

This nationwide payment system facilitates one to one fund transfer between individuals and firms.  Individuals or firms can transfer funds to any account in the same bank or other within the nation under Deferred Net Settlement Basis that is, all transactions needs a definite cut off time. The maximum amount that can be transferred using NEFT is upto 10, 00, 000. The pitfall in using NEFT transfer is it limits to time slots like Monday to Friday (8:00 AM to 6:30 PM) or Saturdays (8:00 AM to 12:30 PM). Banks that participates in the NEFT network only facilitates these transactions.

Necessities-

Name of the recipient

Recipient’s bank name

A valid account number belonging to the recipient

The receiving bank’s IFSC code

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