IMPORTANT BANKING TERMS – NEFT , IFSC , KYC

IFSC :
 
The full form of IFSC is – Indian Financial System Code

There are 11 digits are contained in IFSC Code.
 
• The first four characters represent the  bank code.
 
• The 5th character of a IFSC code is  zero.
 
• The last 6 characters represent the bank branch code .
 
• The IFSC code facilitates uniquely identifies a bank branch participating in the NEFT system.
 
 

KYC  :
 
• The full form of KYC is Know Your Customer.
 
• KYC was introduced by  RBI.
 
• RBI introduced KYC guidelines for all banks in the year  2002 
 
• The components of KYC are Identity proof , address proof 
 and photographs .
 
• The objective of KYC guidelines is  to prevent banks from criminal money laundering activities.
 
• KYC day is celebrated on First working day of august every year .
 
 
NEFT  :
 
• The full form of NEFT is National Electronic Fund Transfer
 
• There is no minimum limit that could be transferred using NEFT .
 
• There is no maximum limit that could be transferred using NEFT.
 
• There is no remittances be sent abroad using NEFT 
(except Nepal under the Indo-Nepal Remittance Facility Scheme)
 
• Can NEFT be used to transfer funds from / to NRE and NRO accounts  – Yes
 
• Maximum amount per transaction for cash-based remittances to Nepal is limited to -Rs.50,000/-
 

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