Inter Bank Fund Transfer enables electronic transfer of funds from the account of the remitter in one Bank to the account of the beneficiary maintained with any other Bank branch. There are two systems of Inter Bank Transfer - RTGS ,NEFT presently. RTGS /NEFT systems are maintained by respective departments of Reserve Bank of India.
Individuals, firms or corporate maintaining accounts with our bank branch can receive funds through the RTGS / NEFT system. It is, therefore, necessary for the beneficiary to have an account with the RTGS / NEFT enabled destination bank branch in the country.
The structure of charges that can be levied on the customer for NEFT is given below:
- Inward transactions at destination bank branches (for credit to beneficiary accounts) – Free, no charges to be levied from beneficiaries
- Outward transactions at originating bank branches – Free, no charges to be levied from remitter.
- ECS : Apart from NEFT/RTGS our bank provides ECS service for fund transfer.
Key features :
- ECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone / electricity / water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc.
- Essentially, ECS facilitates bulk transfer of monies from one bank account to many bank accounts or vice-versa.
Variants of ECS - ECS Credit and ECS Debit :
- ECS Credit is used by an institution for affording credit to a large number of beneficiaries (for instance, employees, investors etc.) having accounts with bank branches at various locations within the jurisdiction of a ECS Centre by raising a single debit to the bank account of the user institution.
- ECS Credit enables payment of amounts towards distribution of dividend, interest, salary, pension, etc., of the user institution.
- ECS Debit is used by an institution for raising debits to a large number of accounts (for instance, consumers of utility services, borrowers, investors in mutual funds etc.) maintained with bank branches at various locations within the jurisdiction of a ECS Centre for single credit to the bank account of the user institution.
- ECS Debit is useful for payment of telephone / electricity / water bills, cess / tax collections, loan instalment repayments, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable to the user institution by large number of customers etc.
Advantages of ECS Debit :
- ECS Debit mandates will take care of automatic debit to customer accounts on the due dates without customers having to visit bank branches / collection centres of utility service providers etc.
- Customers need not keep track of due date for payments.
- The debits to customer accounts would be monitored by the ECS Users, and the customers alerted accordingly.
- Cost effective