Question

Discuss any four benefits of Electronic Funds Transfer.

Hint:

EFT includes methods like NEFT, RTGS, and IMPS.

Answer 1

1. Speed: Transfers are often instantaneous or completed within hours, unlike cheques which take days to clear.
2. Safety: It eliminates the risk of theft or loss associated with carrying physical cash or mailing cheques.
3. Convenience: Transactions can be initiated from anywhere using mobile or internet banking without visiting a branch.
4. Cost-Effective: Electronic transfers reduce the administrative costs associated with paper processing and manual handling.