There was a time when transferring funds from one place to another required a lot of time, resources and good amount of cost. But due to the global markets working seamlessly, money transfers have taken a new shape in our lives.
With the help of Electronic Funds Transfer (EFT) services money is transferred from one bank account to another either within a single financial institution or across multiple financial institutions through computer based operation without any direct intervention of bank staff. Here are a few tricks you need to keep in mind when talking about effective fund transfer services:
• How to transfer
Online transfer options usually include e-transfers and power transfers while the most common offline transfer options involve cheques and bank drafts. If you’re remitting money across international boundaries, make sure your bank has listed its correspondent banks while opting for offline mode. When it comes to sending money abroad, quite a few online options do not fit the bill as per RBI guidelines.
• Speed of disbursement
Online fund transfer option is more appropriate at the time of an emergency. While NEFT usually takes 24-36 hours to transfer money, IMPS transfer money in real time. Offline transfer mode, on the other hand, takes time. If the cheque is issued in a foreign currency, there can be a delay of 7-15 days since the bank would have to verify the deposit before the holder can lay his hands on the money.
• Coverage offered
All fund transfer options may not be available at every location. While the offline mode of transfer is available at bank branches, online mode is available mostly in urban places. While transferring funds from one country to another, you have to check with the currency- if your bank offers coverage to the currency you want.
• Cost of service
There is an inverse relationship between the transfer speed and the cost associated with it. According to a RBI survey, SWIFT which is an international wire transfer system, is more expensive than drafts and cheques. This is simply because they offer more specialized services and have better access to people.
• Convenience
Apart from speed and cost of fund transfer, the factor that matters while transferring money is the convenience. If either the parties is not comfortable using online transfer modes, offline method is a better choice.
These tips will surely guide you through while choosing the most effective fund transfer methods.
With the help of Electronic Funds Transfer (EFT) services money is transferred from one bank account to another either within a single financial institution or across multiple financial institutions through computer based operation without any direct intervention of bank staff. Here are a few tricks you need to keep in mind when talking about effective fund transfer services:
• How to transfer
Online transfer options usually include e-transfers and power transfers while the most common offline transfer options involve cheques and bank drafts. If you’re remitting money across international boundaries, make sure your bank has listed its correspondent banks while opting for offline mode. When it comes to sending money abroad, quite a few online options do not fit the bill as per RBI guidelines.
• Speed of disbursement
Online fund transfer option is more appropriate at the time of an emergency. While NEFT usually takes 24-36 hours to transfer money, IMPS transfer money in real time. Offline transfer mode, on the other hand, takes time. If the cheque is issued in a foreign currency, there can be a delay of 7-15 days since the bank would have to verify the deposit before the holder can lay his hands on the money.
• Coverage offered
All fund transfer options may not be available at every location. While the offline mode of transfer is available at bank branches, online mode is available mostly in urban places. While transferring funds from one country to another, you have to check with the currency- if your bank offers coverage to the currency you want.
• Cost of service
There is an inverse relationship between the transfer speed and the cost associated with it. According to a RBI survey, SWIFT which is an international wire transfer system, is more expensive than drafts and cheques. This is simply because they offer more specialized services and have better access to people.
• Convenience
Apart from speed and cost of fund transfer, the factor that matters while transferring money is the convenience. If either the parties is not comfortable using online transfer modes, offline method is a better choice.
These tips will surely guide you through while choosing the most effective fund transfer methods.
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