It’s Not Network, See Why Your Stand Order Bank Fund Transfer Transaction Sometimes Take 24hours

Electronic Fund Transfer is very common phenomenal associated or being carried out by financial institutions and you might have some point in time gone to the bank and requested to transfer fund from your bank account to other customers’ bank account in the same bank or to different bank entirely.

And sometimes you will notice that when such transfer is carried out, it takes approximately 24hours for the transaction to be effected completely, while in some occasions, you notice that the transaction happens instantly.

Normally, when not told, and your fund transfer transaction is taking close to 24hours without being delivered to destination account, many of you tend to attribute it to network challenges all the time, without actually knowing the real cause of the delay.

Now, in many occasions, it is not network, but see the main reason why your standard order bank transfer transaction sometimes take 24hours to be completed.
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Financial institutions like the banks down here normally use either NEFT or NIP method in fund transfer.

Now whenever they opt to use NEFT method for the transfer, then the transaction can take up to 24hours before it will be completed; while on the other way round, when they use the NIP method, the transaction is completed instantly.

To further throw more light on the NEFT and NIP method of fund transfer and their meaning, keep on reading.

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NEFT stands for National/Nigeria Electronic Fund Transfer and banks normally adopt this method of fund transfer for mass transfer, such as salary, payment for goods etc. and as we said above, this method of transfer normally takes within 24hours to complete because it goes through certain clearance processes before the transaction will be effected.

NIP on the other hand, stands for NIBSS Instant Payment, where NIBSS means the Nigerian Interbank Settlement Scheme, and from the name ‘Instant Payment’, when banks use this payment system to transfer fund, the transaction is completed almost instantly, within 2 minutes. And this type of fund transfer is mainly made for single or individual funds transfer.

When you request for fund transfer in banks, the can decide to use any of the method of fund transfer described  above, but these days, banks like Diamond Bank, GTB etc. often prefer to use NEFT  payment method, hence they will normally inform you that your fund transfer request transaction will take approximately 24hours to be completed.

So it is high-time you stopped thinking that is network all the time that is delaying some of your standing order fund transfer request from your banks.