NEFT, RTGS Facility for POSB Account Holder Begins – Check IFSC for Remittance Facilities
Transferring funds for Post Office Savings Bank (POSB) account holders has become much faster than before. The government has rolled out NEFT, RTGS facility for POSB account holders. In a later clarification, it was stated that NEFT and RTGS are separate products and the rollout date will vary for them. The rollout date for NEFT is May 18, while the RTGS feature is currently being tested and expected to roll out by May 31, 2022.
Swiss Post customers can send money to Swiss Post accounts from other banks via their online bank. This will facilitate investment in POSB systems. Currently, NEFT Inward Remittance is only allowed on the Postal Savings Account. However, this facility will be extended to PPF and SSA accounts shortly.
Similarly, when closing accounts except SB, funds can be credited to the POSB account and outward NEFT can be initiated via post office/internet banking/services mobile banking for the bank accounts of the desired beneficiaries and the writing of a check can be avoided.
IFSC (Indian Financial System Code) is an eleven character alphanumeric code used to identify the particular branch of a participating bank and used in remittances, namely NEFT and RTGS. For POSB customers, there will be only one IFSC for all branches/POs. The IFSC for POSB account holders is IPOS0000DOP.
Indian Post Payments Bank has entered into a sub-membership agreement with the Ministry of Posts to allow NEFT/RTGS transactions to their customers on eligible accounts. To facilitate these inbound/outbound transactions, to and from DoP client accounts, a dedicated IFS code has been created which will be exclusively used only for transactions in DoP client accounts.
Inbound transaction to India Post Payments Bank (IPPB) accounts – IFS code to use – IPOS0000001
Inbound transaction to Postal Savings Account (POSA) accounts in DoP – IFS code to use – IPOS0000DOP
The credit of NEFT/RTGS is based on the beneficiary’s account number only and the Bank will credit these accounts if the account number is a valid account in IPPB. Customers are advised to be careful when mentioning the beneficiary’s account number as IPPB account numbers and POSA account numbers may have a similar structure for some branches.
National Electronic Fund Transfer is an interbank payment system operated by RBI. Under this program, individuals can electronically transfer funds from any bank branch or channel to anyone with an account at another bank branch in the country participating in the program.
NEFT transactions are a 24-hour payment system. Transactions are settled between banks every half hour by RBI.
RTGS – Real Time Gross Settlement is defined as the continuous, real-time settlement of funds transfers, individually on a transaction without netting or aggregation. Real time means processing instructions as they are received. Gross settlement means that funds transfer instructions are settled individually. RTGS transactions are available 24 hours a day.