There are different methods of money transfer in banks today. Let’s look at a few of them.
RTGS or Real Time Gross Settlement System is one way where funds can be transferred between two banks located anywhere that has enabled RTGS. As the name suggests, transfer happens in real time, and there is no delay involved. Users can transfer large amounts starting from Rs 2 lakhs. There is no upper limit for transaction, through RTGS. Also, there is lesser risk compared to other modes of transfer, as it is done quickly and via the Internet.
Yet another is the NEFT or National Electronic Fund Transfer, a nation-wide system which allows fund transfer from any bank branch to any other in the country. Any sum up to Rs 10 lakhs can be transferred through this system.
Another service is the ECS, or Electronic Clearing Service which enables institutions to make payments such as salary, pension, bills etc. in an automated manner. EFT or Electronic Fund Transfer also helps transfer money from one bank account to another without direct handling of money.
