There are two main ways to transfer funds in India: RTGS and NEFT. RTGS allows for real-time large value funds transfers of Rs. 2 lakhs or more between banks. Funds are typically transferred within 2 hours through RTGS. NEFT is for smaller fund transfers done on a deferred net settlement basis, with timings between 8 am to 7 pm on normal days and 8 am to 1 pm on weekends. Key information needed for funds transfers includes sender and receiver names and account details, as well as the IFSC code to properly route transactions between banks and branches.

1. FUND TRANSFER SYSTEMS
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There are two ways for transferring funds
1.RTGS (Real Time Gross Settlement)
2.NEFT (National Electronic Fund Transfer)
1.Real Time Gross Settlement (RTGS)
#RTGS is one of the fastest mode of fund transfer in India through banking channel
#RTGS is nothing but transferring of money in real time on gross basis from one bank to other without
netting. This RTGS is mainly used for large transactions, Minimum amount to be remitted through this
RTGS is 2 Lakhs and there is no any upper limit
#Through RTGS system, money will be remitted for beneficiary account within 2 hours of receiving the
fund transfer message
#Main advantage of fund transferring through RTGS is remitting bank will receive the conformation
message from RBI that money have been transferred to beneficiary’s account
Timings for Transferring Funds through RTGS:
Normal Days: 09:00 hours to 16:30 hours
Week Days: 09:00 hours to 14:00 hours
Processing/Service Charges for RTGS Fund Transfer
Inward Transactions: No Charge
Outward Transactions: Rs.2lakhs to Rs.5lakhs: Rs.30/-
Above Rs.5lakhs: Rs.55/-
Essential Information for RTGS Fund Transfer
#Amount to be remitted
#Remitting Customer’s account number which is to be debited

2. #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
This RTGS fund transfer is not available for all branches of banks in India; one can check the
availability of RTGS system
2.National Electronic Fund Transfer (NEFT)
#NEFT is an electronic fund transfer system on DNS (Deferred Net Settlement) basis through netting.
This NEFT will be done in 12 settlements
#Timings for Transferring Funds through NEFT:
Normal Days: 08:00 am to 07:00 pm
Week Days: 08:00 am to 01:00 pm
#Processing/Service Charges for NEFT Fund Transfer
Inward Transactions: No Charge
Outward Transactions:
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:
#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

3. #Cost effective
#Credit confirmation of the remittances sent by SMS or email
#Remitter can initiate the remittances from home/ place of work through Internet Banking also
#Secure
Essential Things for NEFT Fund Transfer:
#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)
IFSC (Indian Financial System Code) is an alpha-numeric code that uniquely identifies bank branch
participating in the
NEFT system.
IFSC is an 11-digit code with the first four Alpha characters representing the bank, and the last 6
characters representing the branch. The 5th character is 0 (Zero)
In this IFSC code SBTR0000143, SBTR represents bank name “State Bank of Travancore”, Last 6 digits
000143 is the branch code
USES:
Main aim 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
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