What is online money transfer? | What are the IFSC and MICR numbers used for? | How RTGS, NEFT works

October 13th, 2010| Uncategorized.

What is online money transfer? | What are the IFSC and MICR numbers used for? | How RTGS, NEFT works

online money  transeferThe online money transfers or transactions are increasing and the people are paying the electricity bills, mobile bills, credit card bills etc with just one click. There are electronic transfer methods which can transfer the money in the safest way from one account to another. The main among them are RTGS and NEFT. The RBI had given some numbers to make the transactions safe and fast. They call these numbers as IFSC and MICR numbers.

IFSC Number:

The full form of the IFSC is Indian financial system code and this is of 11 digits. This helps in knowing the details of the transactions from one person to another and this is code is compulsory to get the mutual fund, IT refunds and other transactions through online. There will be separate code for every bank which is in the core banking scope. They should remember this number when they perform the online banking and these numbers are available on the check books which are given by the bank. The first four digits in the code tell about the bank and the zero in the fifth position is reserved for the future. The last four digits tell the details of the branch. For example in SBIN0001952, the SBIN is the bank code and 001952 is the branch code.

MICR Number:

MICR is the abbreviated form of magnetic ink character and this is also helpful in the online fund refunds. There are 9 digits in this number and the first three digits is the pin or postal code of the area. The digits from the fourth place to sixth place tell about the bank and the next three places tell about the branch of the bank. The secunderabad CITI bank MICR number is 500037001.

They will follow this method during the online transactions and they had created the RTGS for large transactions and NEFT for small transactions.

How RTGS works:

This is retail time gross settlement and this very fast in the transactions. There will be clearance time in the other transfer methods but there won’t be any waiting in this method. The clearance timings will be different for the different cases. This is available only in the bank working timings and this is available from 9:00 to 4:30 in the working days. In the week days it is available from 9:00 to 12:30. The charges are less for the services and they will send only more than one lakh amounts. The charges for the transactions between one lakh to 5 lakhs are Rs.25 and the charge for more than 5 lakhs is Rs.50.

How NEFT works:

National electric fund transfer is the process of sending or transferring the money from one branch to another in India. They use NEFT to transfer the amount from one account to another if the person does not have the bank account. The NEFT facilities are available in 75000 branches in India by 2010 and they can immediately transfer the money to another account in the same bank. It takes time to transfer the money to the third party which is the account in the other bank. There will be operating hours in the NEFT and the transfer takes place only during the time in which the transfer is done. The charges are from Rs.25 to Rs.100 and the clearance timings are 9:00, 11:00, 12:00, 1:00, 3:00 and 5:00 hours.

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