Money transfer is the day to day transaction wherein money is transferred from one account to another. Money travels from one location to another during this activity. Of course, in actuality there is no tangible movement of money. Rather one account is credited and another is debited.
A transfer of ownership occurs when the money is relocated. The instruments used includes a cheque, a pay order, demand draft, ATMs, debit cards and credit cards. Different circumstances are:
o Issuing loans
o Cash/cheque deposits
o Interest/income/salary deposits
o Payments for telephone bills, gas bills, electricity bills, etc
o Payments against your purchases
o Repayments against loans
o Payments for insurance premiums
o Payments for taxes
The form will contain the necessary details of your bank account. Your bank will then issue a user ID and a password within seven working days of receipt of your form. This will register you for the electronic money transfer facility. A certain amount is charged to you as an administration charge in case you are transferring the money to a third party
Benefits of transferring:
o Money transfer is the safest method as the sender is already verified through his own account number.
o Account opening is easily available in case you do not have any.
o There is no longer a need to carry cash to/from money transfer locations. This avoids the in-transit loss of hard cash.
o Electronic money transfer has no boundaries and can work with almost any country or state.
o Money is transferred in the matter of seconds in case of electronic media.
Security is a primary concern while transferring money. Several complaints have been registered regarding financial frauds . As criminals get smarter, it is our prime responsibility to watch our money and personal information very closely. Here are some tips for having secured money transfer
Author is management student with Somaya Institute of management.
She can be reached at apeksha40@gmail.com
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