The banking industry has seen an exponential growth in the past few years. It is one of the top paying fields in the areas of commerce and accounts. There are innumerable opportunities in the banking sector. Examinations like IBPS and SBI shortlist aspirants on a large scale in public 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 job prospects are tremendous in this industry. You may have to explore the fields of sales, marketing, financial 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 basic terms like NEFT, RTGS, IFSC, MICR etc. related to banking.

Full form of NEFT

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

NEFT transaction charges

Transaction Amount	NEFT Charges (+GST)
Up to 10,000 INR	2.50 INR
10,000 to 1 Lakh INR	5 INR
1 Lakh – 2 Lakh	15 INR
2 Lakh – 5 Lakh	25 INR
5 Lakh- 10 Lakh	25 INR

NEFT transaction timing

Transaction Days	Transaction 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 the continuous (real-time) settlement of funds individually or on an orderly basis. ‘Real Time’ means the processing of instructions at the time they are received rather than 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 Reserve Bank of India, so the payments are final and irrevocable.

RTGS transaction charges

Transaction Amount	RTGS Charges (+GST)
Min amount 2 Lakh – 5 Lakh	25 INR
From 5 Lakh – 10 Lakh	50 INR

RTGS transaction timing

Transaction Days	Transaction 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 is a unique 11-character code that signifies the bank and branch in which an account is held. The IFSC code is used by the NEFT, RTGS and IMPS fund transfer system.

The format of IFSC code

IFS code is an 11-character unique code with its-

• First four characters that represent the bank name
• The fifth character is always 0 and is reserved for future use
• Last six characters that represent the branch code

Full form of MICR

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

Working of MICR-

Each cheque has a series of characters printed at the bottom of the document. These characters are printed with a special ink that has a magnetic resonance characteristic allowing it to absorb and emit a magnetic signal. As the cheque enters the scan path, the magnetic scanner charges the ink before it passes over the MICR read head. To get an accurate MICR read, the characters need to pass through the scanner at a right and consistent speed. If the characters pass too fast or too slow or at an inconsistent speed, it will affect the signal readings. Since signals of certain characters are very similar, it is 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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