Full Form of NEFT, RTGS, IFSC, MICR

The banking system has seen exponential growth within the past few years. it’s one among the highest paying fields within the areas of commerce and accounts. There are innumerable opportunities within the banking sector. Examinations like IBPS and SBI shortlist aspirants on an outsized scale publicly sector banks and facilitate the banks with providing the aspirants with a high paying white-collar job. Private banks have also created lucrative career options. the work prospects are tremendous during this industry. you’ll need to explore the fields of sales, marketing, securities analyst, human resource, insurance, forex, client servicing, investment banking etc. Before plunging into the banking field and adopting it as a career, an aspirant should know all the essential terms like NEFT, RTGS, IFSC, MICR etc. associated with banking.

NEFT-RTGS-IFSC-MICR-

Full form of NEFT

National Electronic Funds Transfer (NEFT) because the name suggests may be a payment mechanism facilitating one-to-one funds transfer. Under NEFT, individuals can electronically transfer funds from one bank branch to a person (having an account with another bank branch) nationwide. NEFT is often done via internet banking, mobile banking, and customer banking.

NEFT transaction charges in India

Transaction AmountNEFT Charges (+GST)
Up to 10,000 INR2.50 INR
10,000 to 1 Lakh INR5 INR
1 Lakh – 2 Lakh15 INR
2 Lakh – 5 Lakh25 INR
5 Lakh- 10 Lakh25 INR

 NEFT transaction timing in India

Transaction DaysTransaction Time
Monday to Saturday
(Except 2nd and 4th Saturday)
8:00 AM to 6:30 PM

Full form of RTGS

RTGS stands for Real-Time Gross Settlement, which is that the continuous (real-time) settlement of funds individually or on an orderly basis. ‘Real Time’ means the processing of instructions at the time they’re received instead of some later time. ‘Gross Settlement’ means the settlement of fund transfer takes place on an instruction by instruction basis. Through RTGS, fund settlement takes place via the books of the Federal Reserve Bank of India, therefore the payments are final and irrevocable.

RTGS transaction charges in India

Transaction AmountRTGS Charges (+GST)
Min amount 2 Lakh – 5 Lakh25 INR
From 5 Lakh – 10 Lakh50 INR

RTGS transaction timing in India

Transaction DaysTransaction Time
Monday to Saturday
(Except 2nd and 4th Saturday)
8:00 AM to 4:00 PM

Full-Form of IFSC

IFSC stands for Indian Financial System Code. it’s a singular 11-character code that signifies the bank and branch during which an account is held. The IFSC code is employed by the NEFT, RTGS and IMPS fund transfer system.

The format of IFSC code
IFS Code is an 11-character unique code with its-

  1. First four characters that represent the bank name
  2. The fifth character is usually 0 and is reserved for future use
  3. Last six characters that represent the branch code

Full-Form of MICR

MICR stands for Magnetic Ink Character Recognition. MICR technology is usually employed by banks to ease the method that involves the clearance of cheques and other documents. The MICR encoding is found at rock bottom of the cheques and other important vouchers. It includes indicators like bank code, cheque number, checking account number, cheque amount, and other control indicators. Unlike barcodes, MICR technology is definitely readable by humans. MICR E-13B has been adopted because of the international standard of ISO 1004:1995.

Working of MICR-

Each cheque features a series of characters printed at rock bottom of the document. These characters are printed with a special ink that features a resonance characteristic allowing it to soak up and emit a magnetic signal. because the cheque enters the scan path, the magnetic scanner charges the ink before it passes over the MICR read head. to urge an accurate MICR read, the characters got to undergo the scanner at a right and consistent speed. If the characters pass too fast or too slow or at an inconsistent speed, it’ll affect the signal readings. Since signals of certain characters are very similar, it’s easy to incorrectly read a 2 as a 5, or a 3 as an 8, or a 4 as a colon. MICR provides a high end secured payment transfer mechanism.

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