How is money transferred from one bank account to another bank account? Explain with an example.

Money can be transferred from one bank account to another using various methods, depending on the infrastructure provided by banks and the financial regulations of a country.

Cheque: Using a cheque, an account holder can instruct their bank to pay a certain amount to a designated person or entity. For instance, if Lisa wishes to transfer $200 to Mark, she would write out a cheque for that amount in Mark’s name. Upon receiving the cheque, Mark would then deposit it in his bank. After processing, the sum would be deducted from Lisa’s account and credited to Mark’s.

Netbanking: Internet banking provides an electronic means of transferring money. Through this method, Sarah, wanting to send $150 to James, would simply log into her online banking portal, navigate to the fund transfer section, input James’s account details and the desired amount, and initiate the transfer. In a short span, often instantly or within a few hours, the money would be debited from Sarah’s account and appear in James’s account.

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