IFT full form in banking is Immediate Funds Transfer. It refers to a type of electronic funds transfer system that allows instant transfer of money between bank accounts. IFT is widely used for quick transactions, ensuring real-time processing and convenience for individuals and businesses.
How Immediate Funds Transfer (IFT) Works?
IFT enables seamless and instant money transfers through banking networks. The process involves:
- Initiation of Transfer: The sender provides beneficiary details and the amount to be transferred.
- Bank Authentication: The bank verifies account details and authorizes the transaction.
- Instant Fund Settlement: The amount is credited to the recipient’s account in real-time.
IFT is commonly facilitated through digital banking platforms such as Internet Banking, Mobile Banking, and ATM fund transfers.
IFT vs. Other Fund Transfer Methods
- IFT vs. NEFT: IFT is instant, whereas NEFT (National Electronic Funds Transfer) settles transactions in batches.
- IFT vs. RTGS: RTGS (Real-Time Gross Settlement) is used for high-value transactions, while IFT is suitable for everyday banking needs.
- IFT vs. UPI: UPI (Unified Payments Interface) is a popular form of IFT, allowing real-time transactions via mobile apps.
Benefits of IFT in Banking
- Speed: Transfers are processed immediately, reducing waiting time.
- Convenience: Available 24/7 through online and mobile banking.
- Security: Transactions are encrypted and authenticated for safety.
- Wide Accessibility: Enables fund transfers across banks and payment platforms.