TELEGRAPHIC TRANSFER Meaning and
Definition
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A telegraphic transfer, commonly referred to as a TT, is a method used for transferring funds or making payments electronically between two financial institutions. It allows for the quick and secure transmission of money across national borders, resulting in immediate availability of funds to the beneficiary.
During a telegraphic transfer, the sending bank will electronically instruct the receiving bank to credit a specified amount of money to the beneficiary's account. This process typically involves the utilization of the SWIFT network, which ensures reliable and secure communication between different banks.
To initiate a telegraphic transfer, the sender must provide the necessary information, such as the beneficiary's name, account number, and the corresponding bank's details. A fee might be charged by the sending bank for this service, depending on the specific terms and conditions.
The main advantage of a telegraphic transfer is its efficiency. Compared to traditional methods like cheques or drafts, telegraphic transfers offer instantaneous funds transfer, ensuring prompt availability of funds to the recipient. This feature makes it particularly useful for urgent payments or cross-border transactions.
Overall, a telegraphic transfer serves as an electronic mechanism for the swift and secure transfer of money between financial institutions, facilitating efficient international payments.
Etymology of TELEGRAPHIC TRANSFER
The word "telegraphic transfer" can be broken down into two parts: "telegraphic" and "transfer". 1. Telegraphic: The term "telegraphic" refers to the telegraph, a device used for long-distance communication in the 19th and early 20th centuries. It transmitted coded electrical signals over long distances through wires. The word "telegraph" itself is derived from the Greek words "tele-" meaning "at a distance" and "graphē" meaning "writing" or "to write". Hence, "telegraphic" primarily pertains to communication over long distances.2. Transfer: The word "transfer" originates from the Latin word "transferre", which is a combination of "trans" meaning "across" and "ferre" meaning "to carry". As a verb, "transfer" means to move, convey, or transmit something from one place, person, or account to another.
