NEFT

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