Money transfer basically refers to the electronic transfer of money, initiated by one person to the other. With the facilitation of services like UPI, online banking, etc., the old-school methods of physically transferring money from one person’s bank account to the other’s through cheques, cash deposits at banks, etc. have been completely eliminated.
Ever since demonetization happened in India, people’s interest has diverted from cash payments to online methods of payment, whether it is online or offline. And, with the ease and comfort of the UPI service, money transfer has become easier. According to the latest data from NPCI (National Payments Corporation of India), 2.21 Billion transactions, worth Rs. 3.91 crore happened in November 2020, while 2.23 Billion transactions, valued at Rs. 4.16 crore happened in December 2020. It was also recorded that the value of UPI transactions increased by 105% in December 2020 as compared to December 2019.
Online Money Transfer Details
Advantages of Online Money Transfer
- One of the major advantages of online money transfer is that it makes the cash readily available unlike banks which take around 2-3 working days to transfer money from one account to another.
- Banks/financial institutions that offer the facility of online money transfer allow both, international and domestic transactions. While domestic transfers are mostly free of cost, international transfers are chargeable.
- Online money transfer is one of the fastest methods of transferring money. Domestic money transfer takes only a day’s time to be completed, while international money transfer takes a day or two.
- In comparison to other methods, online money transfer has the simplest and easiest process to perform and complete
Points to be Considered for Online Money Transfer
- To initiate online money transfer, you must download a mobile payment application and create your account on the same.
- To begin the online transaction, you need the beneficiary’s details such as his/her bank account number, bank’s branch, IFSC, etc.
- Certain banks levy an online transaction fee, which must be borne by the sender.
- It is important to keep all your online banking details private to yourself. While online banking has helped users in the long run, there is also a risk of fraud. Hence, you must be careful with your passwords and bank account details