In today’s society, transferring funds from one account to another is a routine occurrence.
When you make a transaction with an external bank, it is referred to as an interbank transaction, however when you transfer funds to another bank’s account, it is referred to as an intrabank transaction.
Each of these transactions has its own set of characteristics. Both of these scenarios will be examined in depth in this blog.
What is Interbank?
Contents
This is a word that is frequently used in the financial business. Interbanking refers to the transfer of funds from one bank to another, or from one customer to another within the same bank.
What is Intra Bank?
Financial transactions made within the same bank are known as intrabank transactions. When a consumer makes a deposit, for example, the amount is reflected as an increase in his or her bank balance.
This money is then utilized to make another deposit, increasing the balance once more. Intrabank activities are a vital aspect of any bank’s operations because they are one of the primary sources of revenue.
Recommended: India’s Private Banks List
Difference Between Interbank and Intra Bank
- The flow of funds within a bank is intrabank, while the transfer of funds between banks is interbank.
- Because the money is already there, intrabank is given first attention. Interbank, on the other hand, is a pre-arranged transfer from one account to another.
- The IFSC code, bank name, account holder name, and bank name are required for interbank transactions. Intra-bank transfers only require the Payee’s name and account number.
What is Interbank Beneficiary?
A beneficiary is a person or an organization who is the recipient of the funds sent by the payer. Interbank transfer means transferring an amount to a beneficiary having an a different bank account. If a beneficiary holds an account in a different bank than the remitter, it is called an “interbank beneficiary.”
What is Intra Bank Beneficiary?
Interbank beneficiaries are individuals or organizations who are the recipients of interbank transactions. This word can refer to the recipient of monies sent by interbank transfer, or it can simply refer to any bank account held by the same financial institution as the remitter.
Intra bank transfer refers to sending money to someone who has an account with the same bank.
Recommended:
India’s Top 10 International Banks
