Introduction
There should be a system in place to transfer funds between two parties. The transfer may happen between parties located within the same country (called as a domestic transfer) or in different countries (called as an international transfer).
A telegraphic transfer (TT) is an electronic method of transferring funds, employed primarily for overseas wire transactions.
What is Telegraphic Transfer (TT)?
TT is a mode of transfer of funds electronically, widely used until the 1990s. Telegraphic transfers are also known as telex transfers, abbreviated TT.
TT is the fastest mode of funds transfer in earlier days. TT takes 2-4 days to transfer the money depending on the origin and destination of the transfer.
Why Telegraphic Transfer (TT) was Important?
Before the introduction of Telegraphic Transfer, banks and financial institutions used Telex message directly from one bank to another to transfer the money. TT payment was very popular before the existence of electronic payment networks. Cable messages were used to operate TT, and it is treated as one of the other electronic fund transfers.
While the telegraph has become obsolete, the telegraphic transfer concept has evolved with changing technologies and uses secure cable networks to transfer funds. Banks and financial institutions are using electronic fund transfer (EFT) to transfer money.
How TT Works?
The remitter has to ensure that the details provided in remittance form of TT are correct, and the remittance amount is within the limits of the law as per the current policy in force.
The following were some of the benefits of using TT:
II eliminated cash transactions.
Several countries used this facility as it's beneficial for those who are residing abroad and needs to send money to their family in the home country.
As it is a faster way of transferring money, the chances of getting affected by exchange rate fluctuations are low.
It is a secure and safe mode of transfer.
