NEFT, RTGS & IFSC Banking Awareness Material for IBPS/SBI Po & Clerks

By Unknown - Monday, September 22, 2014 - No Comments

RTGS & NEFT are the two main electronic payment settlement systems in India.This material is designed with NEFT, RTGS and IFSC topics, many bank organizations are asking questions form this section for IBPS/SBI Po & Clerks. RTGS, NEFT & IFSC is the Banking Awareness Material has issued by the different Organizations for the banking aspirants certainly get awareness for this. Main aim of asking this type of questions in Banking Awareness is to test the candidate’s knowledge regarding this fund transfer system in India through banking channel. Nowadays this NEFT & RTGS Banking Material is not only useful for IBPS/SBI Po & Clerks, everyone should possess knowledge on this fund transfer systems in banking.

In the most of the banks will be asked some important questions on the Concept of above specified topics of RTGS, NEFT & IFSC banking awareness material to fulfil the all vacant positions of SBI/ IBPS SO, Probationary Officer & RR Clerk Positions. By possessing good knowledge on NEFT, RTGS and IFS code one can make transactions easily from home and work place. Hence bank aspirants who are attending IBPS/SBI Po & Clerk bank exams are recommended to study this NEFT & RTGS Banking Material, good number of questions will be asked from this NEFT & RTGS Banking Awareness section. To make your preparation easy all Banking Awareness Materials are designed here exclusively for you. Study our banking materials and practice our online bank exams to grab confidence for your IBPS/SBI Po & Clerk bank exams. Materials on Computer Awareness, Reasoning and Current affairs are also provided for IBPS/SBI Po & Clerk bank exams. All the Best

FUND TRANSFER SYSTEMS

There are two ways for transferring funds

RTGS (Real Time Gross Settlement)
NEFT (National Electronic Fund Transfer)

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
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

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
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 5^th 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