Fund In Transit

Fund in Transit describes the temporary state of funds while a transfer is still in progress. It is not an independent system function, but an accounting concept used to explain transfers that have been initiated but not yet fully completed. During this stage, funds may be deducted from the originating branch but have not yet been fully received or finalized by the destination branch. Treating these amounts as in transit helps maintain clarity in branch balances, prevents premature settlement, and ensures that financial records remain accurate until the transfer is fully accepted and closed.