Telegraphic Transfer or Telex Transfer a banking term commonly called “T/T, is an electronic method of fund transfer in which funds are transferred via telegraph or cable. Although these days the telegraph is not used for the transfer. Still the practice of transferring money is known by the same name. It has been a means of communication between financial institutions for a long time. It is the most commonly-used means to transfer funds overseas.The telegraphic transfer can be used to transfer money from an account in a certain bank to an account in a different bank. The transfer can be done universally. In Telegraphic Transfer the money is not transferred physically. Only the payment order is wired. The money is paid to the recipient as per the payment order. Typically a telegraphic transfer costs a nominal amount and the amount is paid by both the sender and the recipient. In general, TT charges comprise commission, commission-in-lieu, cable and agent fee. Telegraphic transfers are most common in business conducted in developing countries, where other types of infrastructure, such as computerized payments, may not be available.
The telegraphic transfer is considered to be obsolete due to the emergence of large number of national and international banks. These banks offers more better service and safety because of there wider network. The idea of transferring money quickly and safely between two banks remains the same. If ever you relocate in some other country, then you don’t need to withdraw from one bank and deposit in another bank manually can be a risky affair. The basic rule of telegraphic transfer is still the same, only the technology used to perform the job has changed. Thus though the telegraphic transfer is used less these days, it still remains a convenient and safe way of transferring money!