Online banking # 1- Fund transfer

It was a bright Friday morning and my cousin Allan, was  to visit us. He stays in the other city and studies in one of the best colleges of the city. He had come to attend the youth festival being held in our city’s college. When he was just about to leave, he discovered he was falling short of money. He asked my mom to do a F.T. to his account. I asked him what is a F.T.? He quickly replied that it is a short form for ” fund transfer”. He asked me to find out for myself more about this new concept of money matters. I rushed to my friend, Nosy and this is what he had to say:


Storyyogi

Hi my dear friend Nosy ! I am getting to be an expert in banking but now this ” fund transfer” is something which is very new to me. Can you explain what is this all about?



Mr. Nosy Mice

Fund transfer means money transfer i.e. fund means money and transfer means give or send it to the other party. So, it is transfer of money from one account to another account. For e.g. If I want to transfer money from my account in Bank X to my friends account in Bank Y, I will do a fund transfer. By doing a fund transfer, I will be giving him money directly in his account. Here , there is no physical exchange or personal transfer of money. Instead there is money transfer from one account to the other.


Storyyogi

Hmm, Now I got to know what is F.T i.e. fund transfer. But Nosy, I am sure there would be lot of other options of fund transfer available too. Can you elaborate on that?


Mr. Nosy Mice

Yes, bank provides various options to transfer money from one account to another account. Some of the most popular options are like Online money transfer using Internet Banking e.g. From my bank account to your bank account through internet. Also,money transfer using Mobile banking e.g. through your mobile phone using the dedicated app of your respective bank. And there is  money transfer from branch through other modes like RTGS and NEFT (these are various other electronic modes of payments which I will surely tell you in detail later).



Storyyogi

This is amazing. It is like operating your account remotely without getting into the hassles of personally visiting the bank. You said fund transfer and it’s various other modes . Can you elaborate on that? I am little confused.


Mr. Nosy Mice

Sure, it is not complex as it sounds. Let me explain it to you.First is fund transfer within the Bank- i.e. if I want to transfer money to my friends account within the same bank, I will use “Own Bank Transfer Option”. In this, I need to provide the account number and name of the person to whom I wish to send money. By doing this my account will get debited instantly ( i.e. money reduces from my account) and the person in whose account I have sent money will get credited (i.e. fund is added to the other persons account)


Storyyogi

So, you mean this is the one type of fund transfer which Allan asked my mom to do it, right ?


Mr. Nosy Mice

Yes of-course. The second option is Fund Transfer Outside Bank, i.e. If I want to send money from my Bank account to my friend’s bank account , I will have to use this option. I must provide my friends account details and my friend’s bank details. I would need his account number, bank name, branch name, IFSC code (Indian Financial System Code ) which is a unique code given to every bank branch which participates in electronic money transfer facility etc. Most popular Outside Bank fund transfer options are , NEFT (National Electronic Fund Transfer), RTGS (Real Time Gross Settlement) and UPI (Unified Payment Interface). We will learn more about these in detail when you meet me next. I hope you understood what fund transfer is . You can visit your bank and get this facility enabled so that you become an expert in online banking .


Storyyogi

Ah yes! Will do.Thanks. Nosy you introduced me to a new age banking and I am glad I learnt it from you. See you soon! Bye.

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