Spend, Save and Invest Smartly
Inter Bank Transfer is a special service that allows you to transfer funds electronically from one bank account to accounts in other banks in India. In order to transfer money across accounts you don’t have to use a cheque or cash. Earlier we used to withdraw money from one bank and then deposit in another bank branch by going there, it is a time consuming process. But after the introduction of NEFT and RTGS service it is very easy to transfer fund from one bank to another.
NEFT stands for National Electronic Funds Transfer. Using this system, one bank can transfer funds to the credit account with the other participating Bank. RBI acts as the service provider and transfers the credit from one bank’s account to other bank's account. NEFT is a service offered RBI to all the participating banks. Using this you can directly transfer your money to an account with another bank. But the money won’t reach the other account immediately. Normally it takes a day before the other account is debited. NEFT/RTGS facility is not available in all bank branches. It is better to verify that it is supported by your branch before you can do the transfer.
RTGS stands for Real Time Gross Settlement. The RTGS system makes easy transfer of funds from accounts in one bank to another on a “real time” and on “gross settlement” basis. The RTGS system is the fastest form of Inter Bank money transfer facility available in India. RTGS is another service offered by RBI for making Inter Bank transactions easier. Here money is transferred immediately to the beneficiary account. When we do Inter Bank transfer through RTGS, the money will transfer to the beneficiary account within 5 minutes so RTGS is considered as almost an instant interbank transfer. The only drawback is that in order to avail this facility, you have to transfer at least Rs. 100,000.
To use NEFT or RTGS service you need to submit certain information about the beneficiary and remitter. They are;
|Types||RTGS (Rs.)||NEFT (Rs.)|
|Types||RTGS (Rs.)||NEFT (Rs.)|
|Maximum||No Limit||No Limit|
Below given table will help you in understanding the timings during that the service is available to customers;
|Day||Start Time||End Time|
|Monday to Friday||9.00 A.M||4.00 PM|
|Saturday||9.00 A.M||12.00 PM|
|Types||Start Time||End Time|
|Monday to Friday||8.00 AM||6.00 AM|
|Saturday||8.00 AM||11.30 AM|
|Monday to Friday||09:00 AM||11:00 AM||12:00 PM||1:00 PM||3:00 PM||5:00 PM|
|Saturday||09:00 AM||11:00 AM||12:00 PM|
Following table explains you the way in which Inter Bank transactions are working;
RBI EFT System
Filing EFT application
Preparing schedule and sent application to service branch
Prepare the EFT data file and submit the same to the local RBI for settlement
RBI at remitting centre consolidates the files received from banks. Sort them city wise and prepares the vouchers for debiting the remitting bank on the day one itself.
RBI at the destination centre consolidates them and sorts them bank wise. There after bank wise remittance files are transferred to banks on the same day. Bank wise vouchers are prepared for crediting the receiving banks account on the same day or next day.
On the first day or second day morning receiving banks at the remittance centre process the remittance files submitted by RBI and forwards credit reports to the destination branches for crediting the beneficiaries account.