Presentation is loading. Please wait.

Presentation is loading. Please wait.

How does one transfer money from one bank to another?

Published byRoxana Slye Modified over 10 years ago

Similar presentations

Presentation on theme: "How does one transfer money from one bank to another?"— Presentation transcript:

1 How does one transfer money from one bank to another?
Understanding ‘NEFT & RTGS How does one transfer money from one bank to another?

2 Obvious answer – By Cheque

3 How long does it take for money to move into your account after depositing the Cheque?

4 In essence it does take some time?
Probably a day or two In essence it does take some time?

5 Is there no other option for money transfer which quickly transfers money from one bank account to another bank account? NEFT and RTGS are two convenient modes of money transfer between banks in India

6 RTGS stands for “Real Time Gross Settlement” – It enables transfer of money in real time.
NEFT stands for “National Electronic Funds Transfer” which is an online system of transferring funds between financial institutions,

7 RTGS payment transaction will not involve any waiting period which is the true meaning of “real” time settlement Under normal circumstances the transactions are settled as soon as they are processed by remitting bank. The transaction is settled on one to one basis. Once processed the transactions are irrevocable as the money transfer occurs in RBI records

8 NEFT functions on a deferred net settlement basis where transactions are completed in batches at specific times. These settlement takes place at a particular point of time and all transactions are held up till that time

9 RTGS is for amounts equal or greater than Rs
RTGS is for amounts equal or greater than Rs. 2 lacs while NEFT is used for transactions below Rs. 2 lacs. However there is no upper limit for either RTGS or NEFT

10 In RTGS the beneficiary bank credits the beneficiary’s account in a span of two hours after receiving the funds transfer message. RTGS transactions are processed throughout the working hours of the system. NEFT is done on a net basis where the bank clubs transactions together and only the net amount is transferred. This settlement usually takes place 7 times a day on weekdays and 3 times on Saturdays. NEFT takes place within the same day if it is within the cut off time and the next working day if it is beyond the cut-off time.

11 Majority of commercial banks have employed RTGS and it is available in over 30472 branches
NEFT facility is available in brunches of banks. These branches may be in remote corner of the country also

12 To conclude I’ve tried to summarize the key differentiation in these concepts through diagrams in the next 2 slides

13 Money transfer happens in real time and directly through the banking system

14 Money is aggregated in clusters for reconciliation and settlement

15 Please give us your feedback at
Hope this story succeeded in clarifying the concept of ‘RTGS’ and ‘NEFT’ and more importantly the difference between them Please give us your feedback at

16 Disclaimer The views expressed in these lessons are for information purposes only and do not construe to be of any investment, legal or taxation advice. The contents are topical in nature & held true at the time of creation of the lesson. They are not indicative of future market trends, nor is Tata Asset Management Ltd. attempting to predict the same. Reprinting any part of this presentation will be at your own risk and Tata Asset Management Ltd. will not be liable for the consequences of any such action.

Download ppt "How does one transfer money from one bank to another?"

Similar presentations

We normally hear of promoters raising capital by issuing shares in the market. Understanding Buyback of Shares – By Prof. Simply Simple TM.

We normally hear of promoters raising capital by issuing shares in the market. Understanding Buyback of Shares – By Prof. Simply Simple TM.
Understanding Weather Derivatives (Extended Version) – By Prof. Simply Simple TM Hopefully the lesson on Weather Derivatives helped you get a good idea.

Understanding Weather Derivatives (Extended Version) – By Prof. Simply Simple TM Hopefully the lesson on Weather Derivatives helped you get a good idea.
Understanding the Difference between Supply Side Inflation and Demand Side Inflation.

Understanding the Difference between Supply Side Inflation and Demand Side Inflation.
Understanding Liquidity Ratio – By Prof. Simply Simple TM These days most people go for regular health check-ups in order to stay fit. During one such.

Understanding Liquidity Ratio – By Prof. Simply Simple TM These days most people go for regular health check-ups in order to stay fit. During one such.
What is asset allocation all about? If asset allocation means diversification, then may I ask what is diversification? Asset Allocation is at the heart.

What is asset allocation all about? If asset allocation means diversification, then may I ask what is diversification? Asset Allocation is at the heart.
Understanding the difference between “bottom- line and top-line growth” – By Prof. Simply Simple TM We come across these terms so very often and perhaps.

Understanding the difference between “bottom- line and top-line growth” – By Prof. Simply Simple TM We come across these terms so very often and perhaps.
Understanding “Top Down” and “Bottom Up” investing – By Prof. Simply Simple TM “Top Down” and “Bottom Up” style of investing is one of the most common.

Understanding “Top Down” and “Bottom Up” investing – By Prof. Simply Simple TM “Top Down” and “Bottom Up” style of investing is one of the most common.
Understanding “Margin Money” in derivatives – By Prof. Simply Simple TM I hope the last lesson on ‘Put Option’ in the real world helped you in getting.

Understanding “Margin Money” in derivatives – By Prof. Simply Simple TM I hope the last lesson on ‘Put Option’ in the real world helped you in getting.
Understanding “Fiscal Consolidation” – By Prof. Simply Simple TM Fiscal Consolidation is one word that often appears in columns of pink papers. So I thought.

Understanding “Fiscal Consolidation” – By Prof. Simply Simple TM Fiscal Consolidation is one word that often appears in columns of pink papers. So I thought.
CHEQUE TRUNCATION SYSTEM (CTS). CTS stands for Cheque Truncation System. It is a cheque clearing system undertaken by the Reserve Bank of India (RBI)

CHEQUE TRUNCATION SYSTEM (CTS). CTS stands for Cheque Truncation System. It is a cheque clearing system undertaken by the Reserve Bank of India (RBI)
Understanding what is “net present value of money” – By Prof. Simply Simple TM Two friends Shekhu and Pheku were sitting under a tree and engrossed in.

Understanding what is “net present value of money” – By Prof. Simply Simple TM Two friends Shekhu and Pheku were sitting under a tree and engrossed in.
Understanding relationship between “exchange rate” and “exports” By Prof. Simply Simple TM Many magazines mention that “to improve exports, the central.

Understanding relationship between “exchange rate” and “exports” By Prof. Simply Simple TM Many magazines mention that “to improve exports, the central.
Understanding ‘Money Supply Expansion” and “Run on a Bank” (New Version) – By Prof. Simply Simple TM Sometime back, I had covered a lesson on the working.

Understanding ‘Money Supply Expansion” and “Run on a Bank” (New Version) – By Prof. Simply Simple TM Sometime back, I had covered a lesson on the working.
Understanding ‘Currency Derivatives’ – By Prof. Simply Simple TM Hopefully the lessons on ‘Weather Derivatives’ helped you get a good idea about the concept.

Understanding ‘Currency Derivatives’ – By Prof. Simply Simple TM Hopefully the lessons on ‘Weather Derivatives’ helped you get a good idea about the concept.
Understanding Savings Ratio – By Prof. Simply Simple TM In the last lesson we had discussed about the liquidity ratio and I hope you understood the explanation.

Understanding Savings Ratio – By Prof. Simply Simple TM In the last lesson we had discussed about the liquidity ratio and I hope you understood the explanation.
Understanding the difference between organic growth and inorganic growth – By Prof. Simply Simple TM One of our patrons has asked to clarify these terms.

Understanding the difference between organic growth and inorganic growth – By Prof. Simply Simple TM One of our patrons has asked to clarify these terms.
Understanding ‘NEFT’ & ‘RTGS’ How does one transfer money from one bank to another?

Understanding ‘NEFT’ & ‘RTGS’ How does one transfer money from one bank to another?
But what do ‘Exchange Traded Funds’ mean? Let me try to explain this term & its various constituents to you in the next few slides… Recent data has shown.

But what do ‘Exchange Traded Funds’ mean? Let me try to explain this term & its various constituents to you in the next few slides… Recent data has shown.
Understanding Current Account Deficit. Let's understand this concept through an interesting story!

Understanding Current Account Deficit. Let's understand this concept through an interesting story!
Understanding “Top Down” and “Bottom Up” investing – By Prof. Simply Simple TM “Top Down” and “Bottom Up” style of investing is one of the most common.

Understanding “Top Down” and “Bottom Up” investing – By Prof. Simply Simple TM “Top Down” and “Bottom Up” style of investing is one of the most common.

Similar presentations

Ads by Google