Explained: Mail Transfer and Telegraphic Transfer

Mail transfer and telegraphic transfer (TT) are used to send money to accounts of the customers of the same bank from one place to another. Though increasingly convenient earlier; mail transfers and Telegraphic transfers are slowly getting outdated because of their slow processing periods. Now, customers have instant banking solutions like anywhere banking (AWB) of the same Bank, NEFT, and RTGS mechanisms that are not dishonoured and may be availed from anywhere.

Mail transfer and telegraphic transfer (TT) are both ways to send money, but they differ in how they work and how long they take:

Mail transfer

The mail transfer instrument is another type of prepaid instrument. The sender provides the recipient’s bank account details in the mail transfer application such as his name, account number, the branch where he has an account, etc. must be provided to the bank and pays the amount to be transferred either by cash or transfer from his account. The mail transfer (MT) is possible only if the recipient maintains an account in the same bank but at different branches. Generally, no charges are charged by the bank for mail transfers.

Telegraphic Transfer (TT)

The difference between mail transfer and telegraphic transfer is that telegraphic transfer is made by telegram, telephone, or telex.

Remitting bank uses a secret code (cipher) to the branch that has to credit the money to the customer’s account. The TT receiving branch verifies the code sent by the originating bank and credits the specific amount to the beneficiary’s account if the cipher tallies between them. These cipher systems are different at different domestic and international banks and they are in different styles.  The remittance charges are higher for TT.

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