What is NEFT code, RTGS code, IFSC code, SWIFT code & what is the use ? India

Question

What is NEFT code, RTGS code, IFSC code, SWIFT code

Answer 1

National Electronic Fund Transfer Code (NEFT)

National Electronics Fund Transfer (NEFT) is a nationwide electronic fund move service that makes it simple and secure to transfer money from one bank account to another.

Benefits of Fund Transfer using NEFT -

1. It gets rid of the requirement for a physical tool to transmit money.
2. Parties do not need to be present in person.
3. NEFT is quick, uncomplicated, and effective.
4. Even on weekends and on holidays, money can be transferred using NEFT.
5. Anywhere in the world can start an internet banking session.

Real Time Gross Settlement Code (RTGS) 

The Central Bank of India makes use of RTGS to lessen the risk associated with any high value transactions. Threats will always exist, despite the fact that banks and financial institutions have very high-security procedures in place to protect the information of their customers.

Benefits of RTGS -

1. It is a secure and safe method of transferring money.
2. There is no maximum transaction or transfer amount for RTGS.
3. The RBI has set a cap on transaction Fees.
4. The deal is supported by law.

Indian Financial System Code (IFSC) 

Indian Financial System Code is referred to as IFSC code. It is an identification code with 11 digits. This code is made up of both letters and numbers. The bank is represented by the first four alphabetic characters, followed by the number 0 and the following six characters, which are often numeric but could also be alphabetic.

Benefits of IFSC code -

1. Before, money was transferred the old-fashioned way. With the development of the internet and its widespread use, it is now possible to transfer money online quickly and easily.
2. IFSC code is necessary to complete an online transaction and ensure that the money is put into the correct account.

Society for Worldwide Interbank Financial (SWIFT Code)

A financial institution usage of a globally recognised code is known as a SWIFT code. The code identifies a specific financial institution globally. It has between 8 and 11 digits:

• Bank code is the first four characters (only letters)
• The next two characters are the ISO 3166-1 country code (only letters)
• Location code is the next two characters.
• Last 3 characters: optional branch code
• Moreover, the final three (in the case of an 11-digit SWIFT) will be a branch code.

Benefits of SWIFT code -

These codes are mostly used for sending money between banks, particularly for international wire transfers, as well as for other types of messaging.