Many a time we read in newspaper about the benefits of National Electronic Funds Transfer (NEFT), a dlivery service launched by the bank. Why do banks advocate for such delivery channels?begin{enumerate}item It is a system in which no physical transfer takes place, hence risk is very low.item In this system banks are not required to transfer any money actually to the account of the customer. Only book adjustment is done. Hence actual fund is not needed.item This facility is available to anybody at any place. Even having a bank account is not at all necessary.end{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Many a time we read in newspaper about the benefits of National Electronic Funds Transfer (NEFT), a dlivery service launched by the bank. Why do banks advocate for such delivery channels?

A	Only 1 is correct
B	Only 2 is correct
C	Only 3 is correct
D	Both 1 & 2 are correct

Explanation:

Detailed explanation-1: -Benefits of NEFT No need of using a cheque or a demand draft (DD) for money transfer. Transferring money does not require you to visit the bank. Initiate funds transfer online. The transfer can be completed faster, with convenience.

Detailed explanation-2: -The originating bank branch prepares a message and sends the message to its pooling centre (also called the NEFT Service Centre). The pooling centre forwards the message to the NEFT Clearing Centre (operated by National Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next available batch.

Detailed explanation-3: -Benefits of Electronic funds transfer Well, there are a few. Instantly pay for items online, in-store or by phone. Keep less cash on premises, and carry less cash when doing your business banking. There’s a record of all EFT payments.

Detailed explanation-4: -Started in November 2005, NEFT is an electronic funds transfer system set up and managed by the Reserve Bank of India. NEFT allows the online transfer of funds from one NEFT-enabled bank account to another.

There is 1 question to complete.