Types of Transactions in Bank

TYPES OF TRANSACTIONS IN BANK
With the expansion of the world, economy come increases in

transaction volume and variety across all nations. It is impractical to
do these transactions entirely in cash given their rise. As a result, the
major and regional banks and financial institutions in every country
provide a variety of digital payment solutions. To understand all forms
of transactions, you don't have to be a banker. We frequently create a
significant number of them, but we are still unaware of many others.
What Types Of Banking Transactions Are There?
Money transfers between bank accounts can be done in a variety
of ways. Online money transfers are now the simplest way to send
money effortlessly from one bank to another owing to advances in
technology. You can perform a variety of banking transactions in per-
son, over the phone, or online. All banking transactions have the fol-
lowing categories to make things easier:
1. NEFT (National Electronic Fund Transfer) - It is one of the most
popular ways to transfer money between banks. The idea of NEFT has
gained enormous popularity in the nation as the world gradually tran-
sitions to internet banking, and it is a simple method of transferring
money. A user can electronically transfer funds from any bank branch
to another branch of that bank without going to the bank. But the
NEFT system settles funds in 23 half-hourly batches, fund transfers do
not take place in real-time.
2. RTGS (Real Time Gross Settlement) - is an ongoing process of set-
tling interbank payments on an individual order basis across the
books of a central bank. Large-value interbank fund transactions typi-
cally use real-time gross settlement. Global central banks are using
RTGS systems more frequently, which can reduce the risks associated
with high-value payment settlements between financial institutions.
Large value transactions that need and receive immediate clearing are
the main use cases for the RTGS system.
3. IMPS (Immediate Payment Service) - NEFT and RTGS combined
into IMPS is another way to describe it. Mobile phones are used for the
instant interbank electronic payment transfer service known as Imme-
diate Payment Service (IMPS). All you need to complete an IMPS
transaction is the receiver's (the account holder's) IMPS ID (MMID)
and phone number. Additionally, it is being expanded through addi-
tional means like ATMs, internet banking, etc.
4. UPI (Unified Payments Interface) - is a system that integrates

various bank accounts, smooth fund routing, and merchant payments
into a single mobile application. Your smartphone can be used as a vir-
tual debit card because of this new feature. With the aid of UPI, you
can send and receive money instantly.
5. Banking cards - Includes ATM, credit card, and debit cards, that are
connected to a depository account. Those cards can be used to make
purchases and, in some situations, cash withdrawals. It is issued by a
bank. Nowadays, in addition to the typical magnetic stripe, most bank
cards also feature EMV chips for further protection.
6. AEPS (Aadhaar Enabled Payment System) - a kind of payment
system that uses the UIN to enable Aadhaar cardholders to conduct fi-
nancial transactions easily using Aadhaar-based authentication. AEPS
is a bank-led model that permits interoperable financial transactions
online at Points of Sale.
7. PoS terminals - A hardware system known as a point-of-sale termi-
nal is used in retail settings to handle card payments. Smartphones
with built-in card readers and countertop terminals that print re-
ceipts, and scan bar codes are examples of POS terminals.
8. Cheque - A cheque is a document that instructs a bank to withdraw
a certain sum of money from a person's account and pay it to the per-
son listed as the payee on the cheque. Payments can be made using
checks in a safe, secure, and simple manner. Since there is no use of
actual cash in the transfer process, there is less risk of loss or theft,
making it a secure alternative.
9. Demand Drafts - A demand draft, sometimes known as a DD, is a
bank-issued negotiable instrument that ensures a specific payment
amount while providing the payee's name. DDs are used when there is
a lack of confidence between the parties and when neither party
knows the other well.
10. Banker’s Cheque or Payment Order - The bank guarantees a
banker's check, which is identical to a banker's draft. For the recipient
to receive the specified sum of money, a banker's check must be de-
posited at the bank. The day following the deposit is typically when
the cheques are cleared. A watermark, one of the security measures
included in bankers’ cheques, helps protect them from being counter-
feited.
CONCLUSION:
In India, several payment and transaction solutions have sped up
and simplified the process of moving money between bank accounts.
Many banks, private businesses, and government organizations are
implementing various payment and transaction mechanisms like
NEFT, RTGS, and IMPS. As a result, there is now less distance between
businesses and their clients and other interested parties. These tech-
niques are quick, simple, and helpful for documentation.

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TYPES OF TRANSACTIONS IN BANK

With the expansion of the world, economy come increases in

4. UPI (Unified Payments Interface) - is a system that integrates

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