SBI launches third party transfer

State Bank of India has finally launched a much awaited feature for its online banking customers : third party transfer. Earlier users could transfer funds only among SBI group’s branches using OnlineSbi but now they’ll be able to transfer funds to any bank : ICICI , Bank of Baroda , PNB .. (you name it ) .. Now you can transfer funds to any branch of any bank that is participating in RBI’s NEFT network (some 32000 branches on the last count).

SBI will use RBI’s NEFT service for interbank transfers. There is no minimum amount limit for NEFT. The amount will be credited to the beneficiary within 3 hours in normal course of business. And if you want to transfer funds above INR 1 Lakh, you may use RTGS. With RTGS, the funds will be settled instantaniously .. As of now there is no service charge applicable for this service. Here’s some info on the service taken from SBI’s Online Banking FAQs:

  1. What is Inter Bank Transfer? Inter Bank Transfer is a special service that allows you to transfer funds electronically to accounts in other banks in India through:
    • NEFT – The acronym “NEFT” stands for National Electronic Funds Transfer. Funds are transferred to the credit account with the other participating Bank using RBI’s NEFT service. RBI acts as the service provider and transfers the credit to the other bank’s account.
    • RTGS -The acronym “RTGS” stands for Real Time Gross Settlement. The RTGS system facilitates transfer of funds from accounts in one bank to another on a “real time” and on “gross settlement” basis. The RTGS system is the fastest possible inter bank money transfer facility available through secure banking channels in India. Continue reading “SBI launches third party transfer”