InterBank Fund Transfer
Today it’s very important for an individual to have a bank account, because most of the transactions are done from bank to bank. Thus the interbank transfers are important, but what’s more amazing is the easiness of bank transfer. At present electronic transfer methods are getting very popular, revolutionizing the cash flow. Let us look into detail the methods available for interbank fund transfers.
There are lot of fund transfer methods. If categorizing this mode of payment it can be classified as:
Cheque – The user can use a cheque leaf to transact money to other account. The main disadvantage is that the cheque usually takes 2-3 days for clearance and will only be reflected after 3-10 days if interbank.
Demand draft – In this method the user will get an account pay cheque from the bank with money denomination, which can be only credited on the receiver’s bank account.
Online transfer methods – Internet banking is an online method that can be used for online fund transfer between banks. In India NEFT, RGTS, IMPS are some of the online fund transfer modes available. It is much more efficient and faster than other modes of transfers.
Wire Transfer – This is less popular in India, where the user can request the bank to transfer the money to another account. The main disadvantage is the transaction fee, which makes this less favorable among the transfer methods. This transfer is reflected on the bank account within in 2-7 days.