In the earlier days, transferring cash from one place to another was a hefty process. The most common form of fund transfer in earlier times was through post offices where the money was mailed to the recipients. With rapid urbanization and introduction of modern technology, we now have facilities like National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) which have made transferring funds much easier. These facilities ensure secure and authentic fund transfer from one place to any other place in the world. There are domestic and international forms of payment and these systems also help in EMI facilities, payment of salaries etc.
What do we mean by wire transfer and telegraphic transfer?
Wire transfer
Wire transfer is a mode of fund transfer from one individual/group of individuals to another entity. It is basically a form of linked bank accounts by which you can transfer funds. This is a fast mode of transfer of cash like NEFT or RTGS.
Telegraphic transfer
Telegraphic Transfer (TT) is also a form of electronic fund transfer which is mainly used for transferring funds for overseas wire exchanges. Telegraphic transfers are used commonly for Clearing House Automated Payment System (CHAPS) in the U.K. This mode of fund transfer was used there before the 1990s.
Differences between wire and telegraphic transfer
Mode of operation
Wire transfer helps to transfer money from one bank account to another bank account. It can be used to transfer cash at a cash station. This mode of transfer is affected by SWIFT (Society for Worldwide Interbank Financial Telecommunication), and each bank has an identification code.
Telegraphic transfer was used in the earlier days where overseas payments were made via telex messages between the financial institutions. Telegraphic transfer system uses a system of cable messages. Therefore, it ensured fast fund transfer before RTGS or NEFT.
Systems used
Wire transfers use a system of unique bank identification codes which makes it clear that any individual who chooses to transfer funds, does not require having a bank account with that respective bank. This means that fund transfer can take place between any two banks.
Telegraphic Transfer uses a system of cable messages or telex messages. This form of transfer was used in earlier times where all the banks had to be linked with a messaging system. When funds are being dispatched from one bank to another, both the banks get a confirmation via the telex message about the transfer of cash.
What do we mean by wire transfer and telegraphic transfer?
Wire transfer
Wire transfer is a mode of fund transfer from one individual/group of individuals to another entity. It is basically a form of linked bank accounts by which you can transfer funds. This is a fast mode of transfer of cash like NEFT or RTGS.
Telegraphic transfer
Telegraphic Transfer (TT) is also a form of electronic fund transfer which is mainly used for transferring funds for overseas wire exchanges. Telegraphic transfers are used commonly for Clearing House Automated Payment System (CHAPS) in the U.K. This mode of fund transfer was used there before the 1990s.
Differences between wire and telegraphic transfer
Mode of operation
Wire transfer helps to transfer money from one bank account to another bank account. It can be used to transfer cash at a cash station. This mode of transfer is affected by SWIFT (Society for Worldwide Interbank Financial Telecommunication), and each bank has an identification code.
Telegraphic transfer was used in the earlier days where overseas payments were made via telex messages between the financial institutions. Telegraphic transfer system uses a system of cable messages. Therefore, it ensured fast fund transfer before RTGS or NEFT.
Systems used
Wire transfers use a system of unique bank identification codes which makes it clear that any individual who chooses to transfer funds, does not require having a bank account with that respective bank. This means that fund transfer can take place between any two banks.
Telegraphic Transfer uses a system of cable messages or telex messages. This form of transfer was used in earlier times where all the banks had to be linked with a messaging system. When funds are being dispatched from one bank to another, both the banks get a confirmation via the telex message about the transfer of cash.
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