In this day and age when online-first banking is the norm, it is important to know the advantages and disadvantages of NEFT — or National Electronic Funds Transfer. One of the most preferred ways to transfer funds from one bank account to another, NEFT is a highly beneficial feature that banks in India offer today. Let's take a look at the advantages and disadvantages of an electronic funds transfer method - NEFT.
NEFT is available 24 hours a day, 7 days a week. This means you can transfer funds at short notice even on public holidays and on weekends. This feature makes it highly convenient for anyone who needs funds for an emergency requirement.
Many banks offer the NEFT facility free of charge. The banks that do levy a charge also do so at nominal rates. This makes NEFT one of the most cost-effective ways to transfer money.
RTGS is a system of fund transfer where money is transferred to the recipient’s account immediately. Here is a closer look at how NEFT and RTGS differ from one another.
Irrespective of the channel you choose, remember to enter the beneficiary details correctly and completely. This will greatly minimize the chances of NEFT or funds transfer failure.
If you have to pay smaller amounts instantly, UPI can be a great platform. The Fi.Money app allows you to Pay, Save, and Invest all under one roof! You can also analyse your spends here to see which transfer effects you the most.
It is only rarely that a NEFT transaction fails. In the few instances that this happens, the reasons could be any of the following causes:
Although the RTGS facility has many benefits, there are some minor drawbacks as well. For instance, you cannot track the transaction till it is executed. Also, the minimum sum that needs to be transferred via RTGS is ₹2 lakhs, making this channel unsuitable for smaller fund transfers.
