Inter Bank Transfer is a special service that allows you to transfer funds electronically to accounts in other banks in India through NEFT, RTGS, CFMS and SFMS:
The NEFT (National Electronic Fund Transfer) Service helps in the seamless transfer of funds from one branch to another of particular Bank without any delays or procedural hassles. NEFT is the most suitable mode of payment for small value payments as the charges are cheaper and settlements are faster when compared with other modes of payment.
Through RTGS (Real Time Gross Settlement Service) one can send / receive payments across the country to / from any bank / any branch provided sending bank as well as receiving bank are members of RTGS and their branches are RTGS enabled with IFSC Code. RTGS facilitates quick fund transfer and settlements among the banks for inter bank and customer transactions. It reduces the settlement risk, as payments are made online basis. This system is very much useful not only among banks but also for customers as payment / receipt is made on the same day on real time basis and without any risk, i.e., within two hours at cheaper cost.
CFMS (Centralised Funds Management System): It gives a global view of the balances to the entities maintaining account with the RBI to query / transfer funds in its account at the various DADs, RBI
SFMS (Structured Financial Messaging Solution): This is akin to SWIFT. SFMS allows intra / inter bank message transfer. This also provided for transfer of file attached in a secured mode.
