InvestorQ : What does the fund Transfer Debit Memorandum (TRF DM) mean?
Swapnil Sarang made post

What does the fund Transfer Debit Memorandum (TRF DM) mean?

5 months ago

Well to start with TRF stands for the word transfer and it means any funds transfer, be it for internet charges, SMS charges, or any other purpose, from one account to another. It is shown in the form of a message on your phone or as an entry in your bank account statement whenever any funds transfer took place concerning your account. The message shows you the amount of money credited or debited and the time at which the transaction occurred along with a TRF sign after it which notifies you that this a type of funds transfer.

In this case, DM could mean a debit memorandum. A debit memo on a bank statement refers to a deduction from the bank account's balance. In other words, a debit memo has the same effect as a check written on the bank account. A bank debit memo could be a charge for interest owed to the bank, a loan payment, a fee owed for the printing of checks, a fee for the handling of a check that was returned because of insufficient funds, a transfer of funds from the bank account to another account at the bank, and so on.

The charge, decrease, or reduction is likely called a debit memo because the checking account balance is a liability on the bank's books. This is the case because the bank has your money as one of its assets and it has your account balance as one of its liabilities. When the bank decreases your account balance, it is reducing its liability.