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What is NEFT?

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NEFT

NEFT

The National Electronic Funds Transfer (NEFT) is a money transfer system that allows the customers to transfer money, electronically, from their accounts to other accounts in the same bank or any other networked bank. Apart from individuals, Corporate organizations and firms can also use the facility of National Electronic Funds Transfer system for transferring funds from one account to another.

NEFT – Frequently Asked Questions (RBI Website)

Requirements

The basic requirement of transferring fund through NEFT is a conducting bank and a destination bank. Most of the banks are allowed to carry out NEFT transactions, as per RBI regulations. RBI organizes the records of banks that carry of NEFT transactions, through a centralized database. In order to be able to make NEFT transactions through net banking, you have to register the beneficiary first. For the same, a customer is supposed to provide his/her basic information such as, name, bank’s name, account number, IFSC code and so on. Only after providing these information, the fund transfer can authorized and processed.

Features of NEFT

  • Maximum amount per transaction is limited to Rs.50,000/-
  • NEFT operates batches per hourly.
  • There are 12 settlements in a day between 8:00am to 7:00pm on weekdays (Mon ~ Fri).
  • There are 6 settlements on Saturday between 8:00am to 1:00pm

Through Net Banking, National Electronic Funds Transfer transactions can be made anytime, even on public holidays except for Sundays. But the settlement will be done as per the RBI published timing, listed above.

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5 COMMENTS

  1. The advancement of technology spurred the transfer of money from one place to another, electronically. The article made me aware about the technological leap that made it possible for NEFT to exist. NEFT also has its certain conditions which was explained in points in the article. The writer focused properly on the main points of NEFT.

  2. NEFT is a great way to save time when money needs to be deposited. I worked for an organization that mainly depended on timely deposits and NEFT was so much better when compared to cheques or money orders. I think having fair knowledge of NEFT is beneficial for any organization or individual that deals with any financial transactions.

  3. We had gone out on a holiday to Kanyakumari. There was an emergency. My uncle had to be hospitalised. We were panicked as we did not knew how to go about. It was then I got to knew about NEFT. It is a modern version of money transfer but with greater accuracy and security.

  4. National electronic Fund Transfer of NEFT is a very good option for those who have to transfer money from one part of the country to the other. Its a shame that NEFT does not work on Sundays because for professionals like us Sunday is the only free day we have. Are you sure that the maximum amount per transaction is Rs 50,000?

  5. Great article, thoroughly describes how e-banking is actually working. Technology has made a big leap in past decades and it is one of the best IT segments indeed. E-banking has made so many things easier. There is no need to go to the bank anymore if you want to make a payment. What I like the most about e-banking, is the possibility of making a postponed payment.

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