Cfms fullform in banking

Answer 1

CFMS Stands for Centralised Funds Management System. It is a sort of Electronic fund transfer system. It is a system set up, operated and maintained by Banks to enable operations on accounts maintained at various offices of the Bank, through standard message formats in a secure manner.

The Bank has a Central System which interacts with the subsystems in its various branches to perform operations on the accounts maintained by the Bank. To transfer funds from one branch to another, a request message is sent from the source branch to the Central system of the Bank. The Central System processes the message and debits the account accordingly.

Have the below doubts in mind:

Can CFMS be maintained by each Bank or only a Central Body such as RBI can do it (and other Banks have to become members)?

On what basis, is CFMS different from other Electronic Fund Transfer systems like NEFT (National Electronic Fund Transfer) and RTGS (Real Time Gross Settlement)?

Is CFMS used by general public or only by Banks to transfer money between their branches?

Can CFMS be used to transfer money between different Banks?