Bank transfer is the process of transferring money from one bank account to another. It can be through various mediums but it is faster, quicker, easier and safer than withdrawing and paying in cash. It is also referred to as wire transfer as these transfers are done electronically and are quite time saving.
Process of a Bank Transfer
There are several ways to make a bank transfer. Some do it online, some do it via phone and some do it in-branch bank transfers.
Online bank transfers: Log in to your internet banking account and select the bank transfers option. Select the account you want to transfer fund to and select the transfer type like NEFT, RTGS or IMPS and proceed to make the transfer successful. Nowadays, banks have their own application that makes the transfers easier.
Telephone transfers: You can call your bank’s telephone banking customer service. You will be guided by the banking officer or there might be an automated system.
In-branch transfers: You can visit the bank and deposit the money in cash to the beneficiary’s account.
Details required to make Transfers
Following details are required in order to carry out transfers.
- The date when the payment is to be made
- Name of the person or the business unit
- Six-digit sort code of the account you are paying
- Eight-digit account number of the account you are transferring to.
- A reference may be your name or customer number to let the beneficiary know where the payment came from.
- In some cases, the name and address of the bank you are sending the money to know the correct branch code.
Duration of a Bank Transfer
Choosing to transfer money through IMPS, NEFT, etc happens immediately but sometimes can take up to 2 hours. These online transfers can be done anytime round the clock through internet banking, mobile apps and over the phone. Different banks have different limits of transfers that are high usually.
Bank transfers are a fast process especially electronic transfers but it requires a lot of attention as a small mistake or an ignorance can make you fall into a risk or a difficult situation.
Double-check your details: Check each figure of the transaction amount you make as an extra digit can vary the amount like an extra zero in 2000 can make it 20,000. Check the account number where you have to transfer the amount as a change in digit can change the beneficiary account number and the amount can be transferred to the wrong account that is again a major loss.
In case of phone banking or telephone transfers ask the person on the line to repeat the important details: Ask the person on the telephone to repeat the name spellings, all the numbers like amount, account no. etc. to repeat it for you.
Check the payment to be withdrawn: In case auto debit has been chosen make sure, the amount to be debited is correct and is not more than what was to be debited.
Steps to process a bank transfer
Select a receiver: While doing a bank transfer, you need to add the beneficiary into your account with the exact name as registered with the bank and the account number. Adding a beneficiary is a day long process and if it is already added the transfer happens immediately.
Enter the amount: Enter the amount to be transferred to the other account.
Choose the mode of payment: You can choose how you wish to pay. It can be through credit card, debit card or direct account transfer.
Verify yourself: Provide certain details in order to verify yourself. It is a safety measure to ensure that the account holder is operating its own account.
Double-check the details: Before making the final transfer, double check the details so that transaction doesn’t happen in the wrong account.
Bank transfer is the one of the most opted options as it utilises the least time possible and available across the countries as well. Even if people have not adopted many of the ways to go digital but bank transfer is the most utilised facility and replacing the money order facility slowly. People in rural areas are exposed to this facility and it feels a pleasure to say that they are using to the best of it.
Also read: MERCHANT PAYMENTS: DIGITAL MONEY MATTERS