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In: Finance

Explain the various ways one part of a firm could use to transfer money to another...

Explain the various ways one part of a firm could use to transfer money to another part of the same company?

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Expert Solution


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


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