Telegraphic Transfer meaning
Telegraphic Transfer is an electronic method of transferring funds internationally between bank accounts. Originating
from historical telegraph communication, It remains vital in modern international banking for fast, secure, and
traceable cross-border payments. Telegraphic transfers support global trade and retail remittances, and currency
exchange with advanced encryption standards.
Process of initiating a Telegraphic Transfer
1. Get the recipient's bank details, including full name, account number, and SWIFT/BIC code. Also get the recipient
bank’s correspondent bank account details (account number, SWIFT code, routing number as applicable.)
2. Verify the transfer amount and available funds in your account.
3. Log into online banking or visit a bank branch.
4. Select the 'International Transfer' or 'Telegraphic Transfer' option.
5. Enter the recipient's & correspondent bank’s information and transfer amount, and verify it.
6. Complete the transfer by authorising payment.
Types of Telegraphic Transfers
1. Domestic transfers
- Used within a single country's banking system
- Examples include CHAPS in the UK and CHATS in Hong Kong
- Faster and involve lower transaction fees
2. International transfers
- Cross-border electronic fund movements
- Primarily facilitated through the SWIFT network
- Used for global business transactions, trade payments, and overseas retail remittances
Costs involved in Telegraphic Transfers
- 1. Transfer fee: ₹0 to ₹2,000, depending on the bank and transfer amount.
- 2. Correspondent bank charges: Varies by the intermediary bank.
- 3. Currency conversion fee: 0.5% to 2% of the transfer amount, depending on the exchange rate margin applied by
the bank.
You may use Axis Bank's International Money Transfer mechanism, which offers fast and efficient transactions at
competitive rates.
Pros of Telegraphic Transfers
1. Security
These are highly secure, with encrypted bank networks and strict regulatory checks to protect financial
transactions. The electronic transfer method ensures robust protection against potential fraud.
2. Global reach
These transfers are accepted worldwide through international money transfers across different banking systems and
countries.
3. Convenience
You can initiate transfers from anywhere using online banking platforms, making international money transfers highly
accessible and user-friendly.
Cons of Telegraphic Transfers
1. Costly
Telegraphic Transfers are expensive, and banks charge fees at multiple stages of the process. These combined charges
increase the overall transaction cost.
2. Complex documentation
Transfers may require a lot of documentation but can vary from bank to bank and the same depends upon the purpose of
the remittance.
Conclusion
With technological advancements in the financial sector, Telegraphic Transfers make international financial transfers
easy. However, you need to be cautious when making any kind of transfer internationally, as scammers target these
directly.
Also Read: How
to exchange foreign currency in India - 4 simple ways
FAQs
What is the full form of TT payment?
TT stands for Telegraphic Transfer, an online method for internationally transferring funds between bank accounts. It is fast
and secure through digital banking networks.
Disclaimer: This article is for information purpose only. The views expressed in this article
are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd.
and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader
for taking any financial decisions based on the contents and information. Please consult your financial advisor
before making any financial decision.
