ATM(Automated Teller Machine) (Any Time Money)

ATM is a computerized device that enables the clients of a financial institution to perform financial transactions without need of a cashier , clerk, or bank teller .it is also called cash machines. ATM is identify the customer by inserting a plastic ATM card with a magnetic stripe. authentication is provided by the customers entering a personal identificaation number (PIN) . using ATM , customers can access their bank account in order to make cash withdrawals , check balances, nd purchase pre-paid mobile phone credit.

it came in to force in december , 1972 in the UK . ATM are placed not only inside or near the premises of bank, but lso in locations such as shopping centers , bus stations , railway stations , airport…etc.

Advantages of E-cheque

• provide protection :- it provides more protection to the customers than the paper cheque .
• more convenient:-there is no need for carrying cheque book or cheque leaf to the bank for transacting business.
• less costly:-the cost of producing e-cheque is practically nil. the handling cost is also very low
• avoids loss in transit , bad delivery,etc:-such problems do not arise in e-cheque
• any time cheque:-it is anytime cheque as it can be drawn any time during the day
• no delay cheque:-e-cheque can be credited to the payee’s banker’s account with the help of cheque truncation system
• e-cheque facilitates e-banking

E-Cheque

Electronic cheque is a electronic image of paper cheque. the negotiable instruments and miscellaneous provisions act 2002 has introduced the concept of electronic cheque .

Features of electronic cheque

• it is an exact mirror image of a paper cheque
• it is generated , written and signed in a secured manner using digital signature which is legally valid
• it may or may not have bio-metric signature
• there should be minimum safety standards like a symmetric crypto system

AWIFT(society for worldwide interbank financial telecommunication)

SWIFT provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure , standardized and reliable environment. majority of international interbank message uses the SWIFT network. SWIFT does not facilitate fund transfer , rather it sends payment orders which must be settled by correspondent accounts that the institution have with each other.

SWIFT is a co-operative society under belgian law owned by its members financial institutions with offices around the world. the headquarters of SWIFT is in brussels (begium) .it was founded in 1973. it was started to establish common standards for financial transactions and a shared data processing system and worldwide communication network, fundamental operating procedures , rules for liability ….etc.

Process of NEFT

1. the transferor fills an application form providing details of beneficiary such as name , branch, account type, IFSC ,account number and amount to be remitted
2. the originating bank branch prepare a message and send it the pooling centre (NEFT Service centre)
3. the pooling centre forward the message to the NEFT clearing centre
4. the clearing centre sorts the fund transfer transactions destination bank-wise and prepares accounting entries to receive the funds from the originating bank (debit) and give the funds to the destination banks(credit)
5. bank wise remittance messages are sent to the destination banks through the NEFT service centre
6. the destination bank receive the inward remittance message from the clearing centre and pass on the credit to the beneficiary customers accounts

Features of NEFT

• there is no limit to the amount that can be transferred
• only those who maintain accounts with a bank can receive funds
• the transferor can track the NEFT transactions through the originating bank branch
• the beneficiary gets credit on the same day or the next day. in the case of delay , the NEFT customer facilitation centre (CFC) of the respective bank can be contacted
• eleven settlement are made from 8.am to 6.30 pm on week days and five settlements are made from 8,am to 12.30pm on Saturdays
• on making successful credit to the account of the beneficiary, the originating bank sends a confirmation to the transferor through SMS or email

National Electronic Fund Transfer (NEFT)

NEFT is an indian system of electronic transfer of money from one bank or bank branch to another. The bank or their branches that support such transactions have to participate in the NEFT network.

Any amount of money can be transferred using NEFT , making it usually the best method for retail remittance. customers with internet banking accounts can use this NEFT facility to transfer funds nationwide on their own. funds can also be transferred through NEFT by customers by walking into any NEFT enabled branch of a bank.

in order to make a remittance via NEFT the customer initiating the transfer need to have the IFSC of the bank branch where the account of the beneficiary is located. customers are required input the beneficiary account number and name as well as the name of the bank being transferred to.

Advantages of RTGS

• There is no delay in settlement
• it is more accurate and safe
• any amount subject to a minimum rupees 2 lakh can be transferred
• transactions are processed continuously
• it is very much useful in capital market and money market

Features of RTGS system

• interbank fund transfer takes place on a real time basis
• RTGS is used only for transferring big amounts. the minimum amount to be remitted is rupee 2 lakh. there is no maximum limit
• no core banking facility is required for the operation
• the RTGS service window is available from 9.00 hrs to 16.30 hrs
• generally no processing charges are levied on such transactions
• RTGS is managed by the central bank of each country for which all banks maintain a current account with the central bank
• to use this facility the customer has to fill a form providing the details like name, bank branch where account is held, IFSC…etc.

RTGS (Real Time Gross Settlement)

Real time means the processing of instructions at the same time they are received rather than at some time later .RTGS defined as the continuous , real time settlement of fund transfer individually on an order basis. Thethe RTGS system is best suited for low-volume , high value transactions. it lowers settlement risk besides giving an accurate picture of the position of account of a bank at any point of time. the implementation of RTGS system by central banks throughout the world is driven by the goal to minimize risk in high value electronic payment settlement system.