NEFT

NEFT Full Form: National Electronic Funds Transfer

Key Highlights

• NEFT (National Electronic Funds Transfer) is an electronic payment system in India that enables fund transfer from one bank account to another on a deferred settlement basis.

• It is operated by the Reserve Bank of India (RBI) and is used widely for the safe transfer of money across the country.

What is NEFT?

NEFT (National Electronic Funds Transfer) is an electronic payment system in India that enables fund transfer from one bank account to another on a deferred settlement basis. It is operated by the Reserve Bank of India (RBI) and is used widely for the safe transfer of money across the country.

Important Features of NEFT

• Batch Processing: Transactions are settled in half-hourly batches.

• No Minimum Limit: It is applicable for any amount, big or small.

• Nationwide Coverage: Most of the banks and their branches are NEFT-enabled in India.

• 24x7 Availability: It is available 24/7, even on holidays.

How NEFT works?

• The sender initiates the transfer through internet banking, mobile banking, or by visiting a bank branch.

• The transaction is added to the next available settlement batch.

• Funds are transferred to the beneficiary's account within the same day, depending on batch timing.

Advantages of NEFT

1. Convenience: Can be started from anywhere through internet banking.

2. Safe and Reliable: Governed by the RBI.

3. Low Charges: Low cost for transactions.

4. Wider Usage: Both for personal as well as corporate accounts.

How to avail of NEFT?

Through the Internet:

• Open your bank's internet or mobile banking site.
• Choose the option of NEFT and enter details such as beneficiary name, account no., IFSC no. along with the amount for transfer.
• Confirm and authorize the transaction.

Offline Mode:

• Visit a branch of your bank and fill up the NEFT form with the details.
• Submit the form to the concerned bank staff to process it.

Charges for using NEFT

• Online: Free, or a very small charge

• Branch: Banks usually charge a small sum for this facility.

NEFT Vs RTGS

Feature	NEFT	RTGS
Settlement Time	Batch processing	Real-time
Minimum Amount	No minimum	₹2,00,000
Speed	Relatively slower	Instant