The world is changing quickly, and so is the banking industry. Previously bank transfers were purely paper-based, and it took long before actual balances got reflected after a bank transfer. Here is how bank transfers have been simplified:
You may wonder can you transfer money from one bank to another through a phone call? Not yet. However, you can do it online. You do not have to visit the branch and stand in a queue to transfer money. According to experts, with internet banking, you can log into your account and transfer money from one account to another.
Most banks offer online banking services, and they enable users to:
- Make payments or transfer money
- Check their account balances and credit card limits
- Apply for loans or mortgages
- Set savings goals and perform other functions that can be done through traditional banking channels
Most banks now provide this service for free, and no charges are involved in transferring money online.
Automated Teller Machines (ATMs)
ATMs were introduced to help people avoid long queues in banks while performing transactions. ATMs are now linked with other ATMs across the country. It is to facilitate inter-bank transactions that took several days before the introduction of ATMs.
Mobile banking services have been made available by most banks at no cost to be accessed by anyone who has access to a mobile phone or smartphone. You can complete bank transactions by sending SMS from your mobile phone too. It is one of the best ways of managing your banking needs without having to visit a branch or ATM every day. The option is always available if you need quick access to your bank accounts while on the go.
Wire transfer is a super-fast, secure, and reliable way of transferring money from one bank to another. It is a faster alternative to sending a check or using other banking services like NEFT or RTGS. When you use wire transfer services, the funds will be sent from one bank to the beneficiary’s bank account via an automated clearinghouse.
NEFT stands for National Electronic Funds Transfer. It is a bank payment system that enables banks to electronically transfer funds between accounts on a real-time basis through an electronic communication network (ECN). The NEFT system allows banks to receive and make payments in their currency daily.
RTGS is an electronic funds transfer system that facilitates the settlement of transactions in real-time. Thereby eliminating delays caused by the processing time required for other systems like NEFT and IMPS. RTGS uses lock-step processing in which all payments are settled simultaneously at the end of every business day. This ensures that no payment needs to be resubmitted. This is because it eliminates the need for multiple batches due to different processing times used by other systems.
Conclusively, bank transfers have evolved from a simple concept of transferring money from one account to another. It has been through various stages of evolution through the emergence of different types of bank transfers like NEFT, RTGS, and IMPS. The technology used for these transfers is also evolving rapidly and keeping pace with the changes in the industry.