Definition of Inter Bank Transfer
Transfer of funds electronically from the account of remitting customer in one Bank to the account of the beneficiary maintained with any other Bank branch participating in this scheme. RTGS and NEFT are systems of Inter Bank transfers, which are maintained by Reserve Bank of India.
Definition of RTGS and NEFT
Real Time Gross Settlement (RTGS) – Under this system, fund transfer takes place in real time and are settled on continuous, individual settlement basic. Normally, the beneficiary Bank branch receives the funds in real time as soon as funds are transferred by the remitting Bank. It is the fastest and secure ways of transferring money in India under inter bank money transfer.
National Electronic Fund Transfer (NEFT) – Under the NEFT system fund transfers take place on Deferred Net Settlement basis and are take place in hourly batches. Presently, NEFT operates in hourly batches from 9 am to 7 pm on week days and 9 am to 1 pm on Saturdays. Currently there are eleven settlements from 9 am to 7 pm on week days and five settlements from 9 am to 1 pm on Saturdays.
The remitting customer has to fulfill the following information to the bank at the time of transfer through RTGS and NEFT.
- Name of the beneficiary bank and branch
- Name & Account Number of the beneficiary customer
- Amount to be remitted
- Remitting customer’s account number which is to be debited
- The IFSC Number of the receiving branch
What are the benefits of using RTGS/ NEFT?
- Fast transfer of the funds to the beneficiary account
- Credit confirmation SMS or mail is sent after fulfillment of the transaction.
- Any person or corporate could transfer money from home or work place using internet banking.
- It is a cost effective and less time consuming way of transferring money.
- The remitter need not require to send the physical cheque or Demand Draft to the beneficiary.