In: Finance
Explain the various ways one part of a firm could use to transfer money to another part of the same company?
There are many ways of transfering money from one bank account to
other account. There are three major means of transfering
money.
NEFT
RTGS
IMPS
Every bank provides these facilities. User interface and
limitation/Charges may differ from one bank to other.
Now a days Even mobile banking Application provided by banks can do
lot more than what you imagine.
First walk into your bank and fill appropriate forms to get those
facilities
NEFT is Simplest form of Money transfer from one bank to other
bank.
Source and desitination account should be held on any
nationalised/private banks with core banking solution.
To make any NEFT transaction you need two important information.
Account number and IFSC Code of desitination account. NEFT request
will be processed in batch. For example if you post a Neft Request
, your bank will send them to RBI. RBI will process all request it
received since last Batch.
it operates on morning 7.30 to evening 6.30. monday to friday and
till 12.30 on saturday. No NEFT service on All national holidays
and sundays
If you dont have access to internet/mobile banking you can walk
into branch and make request.
NEFT process small amount i.e less than 50000/transaction to one
destination/day.
It will take 1.30 hours to make a settlement. Depends up your
bank.
RTGS is real time money settlement . if you want to transfer more
than 2L you can use this. but this one can be done only by visiting
branch directly.
Payee account will be credited immediately.
It is almost similar to NEFT but minimum payment and how it credits
to destination account differs. you need MICR Code (can be found in
bottom of Check Slips issued by your banker and Account
number.
IMPS - is new payment method. you just need to know destination
account holders Mobile number and his/her IMPS id (MMID)
you can send money any time any where.
Most of the banks allow IMPS and enable user to use this
feature.
With IMPS you can send money less than 50K. it is really
fast.
Simply it can be defined as NEFT+RTGS.
Thanks