Advantages and disadvantages of NEFT

NEFT stands for national electronics fund transfer. It is used to transfer money from one account to another account from net banking. It saves time without going the bank transaction is proceed. NEFT is simple and it is paperless and is no need for a chequebook or demand draft to transfer the money. So here this article gives information about the advantages and disadvantages of NEFT to better understand this topic.

Pros or Advantages of NEFT:

  1. NEFT is round clock availability on all days of the year.
  2. No charges to saving bank account customers for online NEFT transactions.
  3. No levy of charges by RBI from banks.
  4. Penal interest provision for the delay in credit or return of transaction.
  5. Positive confirmation of credit to the beneficiary account to the remitter via SMS/email.
  6. Near real-time funds transfer to the beneficiary account and settlement in a secure manner.
  7. On all days of the year, we are available 24 hours a day, 7 days a week.
  8. The beneficiary does not have to visit the bank for depositing the cheque or demand a draft for receiving the payment.
  9. It is a safe and secure payment method in which both parties can be assured of security without any worry of loss or theft of the physical instruments.
  10. The national electronic fund transfer method of initiating a transaction is cost-effective and individual can initiate or receive it directly at the convenience of their home or workplace through the internet banking
  11. This electronics transfer is cost-effective.

Cons or Disadvantages of NEFT:

  1. Despite the bank taking proper steps to ensure the security of NEFT transactions using an unsecured one makes your information prone to be hacked or passed onto a hacker.
  2. NEFT is the highly technical alternative of transferring funds which might not be easy for everyone to operate. A  person having little computer knowledge might find it difficult to operate and access this method.

Thank you for reading this article. If you have any queries regarding our article on the advantages and disadvantages of NEFT then do comment in the comment section below.

 

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