Q. What is the full form of TRF in Banking?
Ans. TRF is a common abbreviation for the term TRANSFER. It is a transfer of funds within the same bank. The term “transfer” relates to money movement. This term is frequently used when money is transferred from one account to another bank from one account to another.
Many times this term “TRF” is noticed as it is written on our bank account statement. This term indicates the debit and credit of the amount from one account to another. Likewise, on transferring an amount to a third party or on receiving an amount from them, the term “TRF” can be seen used. Usually, when we transfer funds between two accounts at the same bank, we use the term TRF.
Generally, we can see TRF in banking in the following:
- Bank Statement
- Bank Passbook
- Transaction SMS
The transfer in India is done in batches. It is done once a week and payments for the transfer are collected from branch counters once the branch has completed transactions. For example, if money must be transferred from one branch to another, the bank must first collect funds for this purpose after executing transactions at that branch. The money is then transferred to other branches before being credited to a specific account at the ultimate destination branch.
Importance of TRF: TRF is significant since it aids in the reduction of bank branches in a given country. It also helps to keep the costs of the branches low.
Transfers between banks are the movement of funds from a source branch to a destination branch and vice versa.
