What are the steps involved in transferring funds between banks?

Not sure what aspect of money transfer you are asking? From a consumer's point of view? From a bank client's point of view for a specific bank? or in general?

If in general, then to understand how money moves, the following two answers might be helpful:

• Faisal Khan's answer to How does the settlement of payments work in banks? Specifically, how do payment systems that are connected to multiple banks actually settle the amount between two banks?
  
• Faisal Khan's answer to How does money transfer between banks and different countries work?