My Musings

Prior to 1990, we had only Postal Money Orders if we have to send money. Banks issued Demand Drafts. Though they were highly useful those days, they started losing usefulness as te=he years rolled on. Some simpler, faster mode of transmitting was needed and the Govt of India founded the National Payments Corporation of India NPCI in late 1990s. It formulated many rules and regulations with the guidance of RBI and Indian Banks Assn. In 2005s it took shape and   India has not turned back after 2005. NEFT / RTGS Year 2005 saw National Electronic Funds Transfer and Real Time Gross Settlement (NEFT and RTGS). The structure of the Banks were standardised - the Cheque Truncation System CTS was evolved with standardisation of Cheque leaves for faster clearing. Each branch of every Bank was allotted a unique Code - Indian Fnancial Systems Code (IFSC). It is a 11 character Code, first 4 alpha (name of the bank)   next a zero and the last six the branch code. Using NEFT, one can s...

NEFT Transfer of money from one account to another. No Cheques, no Demand Drafts We can send/transfer money from one account to another (Inter Bank Transfer) conveniently, using NEFT. ( National Electronic Funds Transfer ). From any bank anywhere in India, to any other branch in India. Requirements You should have a net banking account of any bank. The bank-branch where you are having account should be a core banking branch. And you should have a mobile phone. How NEFT works Log into your account, choose Fund Transfer and type the details like the receiver's name, his bank branch name, and the amount. Hit the Submit button and the amount is transferred from your account to the specifed account. You Need to know The receiver's bank branch's IFS Code, a 11-digit alpha numeric code.(Indian Financial Systems Code). IFS code of your bank-branch is printed on your cheques. For the receiver bank-branch's IFS code there is a pull-down menu (bank's name and locality) Securi...