Numerous bank associations are making inquiries structure Banking Awareness for IBPS/SBI Po & Clerks. Primary point of soliciting this sort from inquiries in Banking Awareness is to test the competitor’s information in regards to this trust move framework in India through keeping money channel. These days this NEFT & RTGS Banking Material is not just valuable for IBPS/SBI Po & Clerks, everybody ought to have information on this store move frameworks in managing an account.
By having great learning on NEFT, RTGS and IFS code one can make transactions effortlessly from home and work place. Henceforth bank applicants who are going to IBPS/SBI Po & Clerk bank exams are prescribed to study this NEFT & RTGS Banking Material, great number of inquiries will be asked from this NEFT & RTGS Banking Awareness area. To make your planning simple all Banking Awareness Materials are outlined here only for you.
Study below to get certainty for your IBPS/SBI Po & Clerk bank exams. Materials on Computer Awareness, Reasoning and Current undertakings are additionally accommodated IBPS/SBI Po & Clerk bank exams:
Fund Transfer Systems-
- 1 Fund Transfer Systems-
- 1.1 Ways for Transferring Funds-
- 1.2 Real Time Gross Settlement (RTGS)-
- 1.3 National Electronic Fund Transfer (NEFT)-
- 1.4 Indian Financial System Code (IFSC)-
Fund are an indispensable part of our daily transactions, be it a consumer to a business, a business to a consumer or a business to a business. Payments raise the GDP of a country thus it is mandatory that the payment systems of the country are “safe, secure, sound, efficient, accessible and authorize,” as states the mission statement of the Reserve Bank of India’s publication on Payment Systems in India.
Ways for Transferring Funds-
1) RTGS (Real Time Gross Settlement)
2) NEFT (National Electronic Fund Transfer)
Real Time Gross Settlement (RTGS)-
Real time gross settlement systems (RTGS) are specialist funds transfer systems where transfer of money or securities takes place from one bank to another on a “real time” and on “gross” basis. Settlement in “real time” means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without bundling or netting with any other transaction. Once processed, payments are final and irrevocable.
RTGS systems are ordinarily utilized for high-value transactions that oblige immediate clearing, in some countries the RTGS systems may be the only way to get same day cleared funds and so may be used when payments need to be settled urgently, for example, when buying a house. However most customary installments would not utilize a RTGS framework, yet rather would utilize a national installment framework or system that permits members to group and net installments.
This RTGS is fundamentally utilized for extensive transactions, Minimum add up to be dispatched through this RTGS is 2 Lakhs and there is no any furthest breaking point
Through RTGS framework, cash will be dispatched for beneficiary record inside 2 hours of accepting the trust exchange message
Primary point of interest of store transferring through RTGS is transmitting bank will get the adaptation message from RBI that cash have been exchanged to beneficiary’s record.
Timings for Transferring Funds through RTGS-
Normal Days: 09:00 hours to 16:30 hours
Week Days: 09:00 hours to 14:00 hours
Service Charges for RTGS Fund Transfer-
Inward Transactions: No Charge
Rs.2lakhs to Rs.5lakhs: Rs.30/-
Above Rs.5lakhs: Rs.55/-
Essential Information regarding RTGS Fund Transfer systems-
Amount to be dispatched.
Dispatching Customer’s account number which is to be debited
Name of the beneficiary bank and branch
Name of the beneficiary customer
Account number of the beneficiary customer
Sender to receiver information
IFSC (Indian Financial System Code) of the receiving branch
Fund transfer is not available for all branches of banks in India.
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National Electronic Fund Transfer (NEFT)-
NEFT is a facility provided to bank customers to enable them to transfer funds easily and securely on a one-to-one basis. It is done via electronic messages. In order to speed up the transactions there are up to 6 transactions in one day. Even though it is not on real time basis like RTGS (Real Time Gross Settlement), NEFT facilities are available in 30.000 bank branches all over the country and work on a batch mode. NEFT has gained popularity due to it saving on time and the ease with which the transactions can be concluded. This reflects from the fact that 42% of all electronic transactions in the 2008 financial year were NEFT transactions.
Timings for Transferring Funds through NEFT-
Normal Days: 08:00 am to 07:00 pm
Week Days: 08:00 am to 01:00 pm
Service Charges for NEFT Fund Transfer-
Inward Transactions: No Charge
Up to Rs.10, 000: Rs.2.50/- + Service Tax
Rs.10, 000 to RS.1lakh: Rs.5/- + Service Tax
RS.1lakh to RS.2lakhs: Rs.15/- + Service Tax
Above RS.2lakhs: Rs.25/- + Service Tax
Advantages of NEFT Systems-
Remitter need not send the cheque or DD to the beneficiary.
Beneficiary need not visit the bank for depositing.
Beneficiary need not to worry about the loss / theft of physical instruments.
Remitter can initiate the remittances from home/ place of work through Internet Banking also.
Credit confirmation of the remittances sent by SMS or email.
Essential Things regarding NEFT Fund Transfer systems-
Both originating and destination bank branches should be a part of the NEFT system.
Name of the beneficiary bank and branch.
Name of the beneficiary customer.
Account number of the beneficiary customer.
Account type of the beneficiary customer.
IFSC (Indian Financial System Code) of the beneficiary bank.
Indian Financial System Code (IFSC)-
The Indian Financial System Code (IFSC Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the two main Electronic Funds Settlement Systems in India: the Real Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) Systems. This is an 11-character code with the first four alphabetic characters representing the bank name, and the last six characters (usually numeric, but can be alphabetic) representing the branch. The fifth character is 0 (zero) and reserved for future use. IFSC Code is used by the NEFT & RTGS systems to route the messages to the destination banks/branches.
Benefits and Use of IFSE Code-
Main benefit of using this IFSC code is to identify the originating/destination banks and branches and also to route the messages to the concerned banks/branches appropriately