Introduction to TT
TT full form is Telegraphic Transfer, which refers to an electronic method of transferring funds from one bank to another across international borders. A TT is usually used by businesses that need to send a large amount of funds overseas. The process of TT may take 2 to 4 business days, depending on factors like the distance between origin and destination, and currency exchange requirements.
In earlier times, TT was also considered as the fastest method of transferring funds.
How does TT Work
Following are a few steps that indicate the process of a TT.
- Initiation: The sender instructs their bank to transfer money to the recipient’s bank account. This instruction is usually done through electronic means, but historically, it could also have been done via telegraph.
- Processing: The bank processes the transfer request and sends the payment instructions to the recipient’s bank. The banks communicate through secure electronic channels.
- Transfer: The funds are transferred electronically, and the recipient’s bank credits the amount to the recipient’s account.
- Fees: There are usually fees associated with TT transactions, which can be charged by both the sending and receiving banks.
- Currency: TT transactions can be carried out in various currencies, and the exchange rates and conversion fees may apply if the currencies of the sender and recipient are different.
Benefits of TT
- Convenience: TT allows for easy transfers across international borders without the need for physical exchange of documents. This convenience is especially useful for businesses dealing with overseas clients and suppliers.
- Large Amounts: TT is suitable for transferring large sums of money, making it a preferred method for significant business transactions, real estate purchases, and other high-value payments.
- Speed: TT transactions are generally processed faster than traditional methods, such as checks. Transfers can often be completed within one to three business days, depending on the banks and countries involved.
While the traditional telegraph facility has become obsolete, Telegraphic Transfers (TT) have evolved significantly. Today, TT utilizes secure cable networks to transfer funds both domestically and internationally, making it a reliable and modern payment method.
