Fund transfer for Post Office Savings Bank Account (POSB) holders has become much quicker than before. The government has rolled out the NEFT, RTGS facility for POSB Account holders. In a subsequent clarification, it has been stated that NEFT and RTGS are separate products and the rollout date will vary for them. The roll out date for NEFT is May 18 while RTGS functionality is currently under testing and is expected to be rolled out by May 31, 2022.
Post Office customers can send money to Post Office accounts from other banks through their internet banking. This will make investment in POSB schemes easier. At present, NEFT Inward Remittance is allowed only to Post Office Savings Account. However, this facility will be extended to PPF and SSA accounts shortly.
Similarly, during closure of Accounts except SB, the funds can be credited to the POSB account and further outward NEFT can be initiated through Post Office/Internet Banking / Mobile banking for desired Beneficiary bank accounts and drawing of cheque can be avoided.
IFSC (Indian Financial System Code) is an eleven-character alphanumeric code that is used to identify the particular branch of a participating bank and is used in remittances namely NEFT & RTGS. For POSB customers there will be only one IFSC for all branches/POs. IFSC for POSB account hodlers is IPOS0000DOP.
Indian Post Payments Bank has entered into a sub membership arrangement with the Dept. of Post to allow NEFT/RTGS transactions to their customers in eligible accounts. To facilitate such inward/outward transactions, to and from DoP Customer accounts, a dedicated IFS code has been created which will be exclusively used only for transactions in DoP Customer accounts
Inward Transaction to India Post Payments Bank (IPPB) accounts – IFS code to be used – IPOS0000001
Inward Transaction to Post Office Savings Account (POSA) accounts in DoP- IFS code to be used – IPOS0000DOP
Credit of NEFT/RTGS is solely based on beneficiary account number and Bank will go ahead with credit to such accounts if the account number is valid account in IPPB. Customers are advised to take care while mentioning beneficiary account number as IPPB account numbers and POSA account numbers may be of similar structure for some branches.
National Electronic Fund Transfer is RBI operated interbank payment system. Under this scheme individuals can electronically transfer funds from any bank branch or channels to any other individual having an account with any other bank branch in the country participating in the scheme.
NEFT transactions are a round-the-clock payment system. Transactions are settled between banks in every half an hour batch by RBI.
RTGS – Real Time Gross Settlement is defined as the continuous and real time settlement of fund transfers, individually on a transaction without netting or grouping. Real Time means the processing of instructions at the time they are received. Gross Settlement means the settlement of fund transfer instructions occurs individually. RTGS transactions are available round-the-clock.