Transferring funds from one account to another is a common transaction in today’s world.
When you make a transaction with an external bank, the transaction is considered an interbank transaction, whereas when you transfer the funds to an account within the same bank, it is known as an interbank transaction.
Each of these transactions has different features attached. This blog will look at both of these scenarios in detail.
What is an Interbank?
This is a commonly used term in the banking industry. Interbanking means, in this case, sending money from one bank to another i.e. from one customer to another in a different bank.
What is Intra Bank?
Intra Banking operations are financial transactions conducted within the same bank. For example, when a customer makes a deposit, this amount is shown in the form of an increase in his or her bank balance.
This amount is then used to make another deposit, which will again increase the balance. Intrabank operations are an important part of any bank’s business since they are one of the main sources of income for banks.
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Difference Between Interbank and Intra Bank
- Intrabank is the flow of funds within a given bank, while interbank is the flow of funds between banks.
- Intra bank is an exceptionally high priority as the money is already existing. Whereas interbank is a scheduled transfer from one account to another.
- To make interbank transactions, you need the IFSC code, bank name, account holder name, and bank name. While intra-bank transactions just need the Payee name and account number.
What is an 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 account in a different bank. If a beneficiary holds an account in a different bank than the remitter, it is called an “interbank beneficiary.”
What is an Intra Bank Beneficiary?
The person or organization who is the receiver of an inter-bank transaction is also called an “interbank beneficiary”. This term may refer to the recipient of funds transferred through an interbank transfer, or it can simply be applied to any bank account with the same financial institution that the remitter is using.
Intra bank transfer means transferring the amount to a beneficiary having an account in the same bank.