What is the full form of NEFT?
The full form of NEFT is the National Electronic Fund Transfer. Banking has become an important part of our daily lives. Since the time it became online, a number of our activities have been easy to manage. You don’t have to go to the bank and wait in long lines for money transfer like before. You no longer have to fill up cheques, withdrawal forms, and chaplains. NEFT is one of the online money transfer methods which are currently in use.
NEFT is a centralized nationwide payment method owned and controlled by the Reserve Bank of India ( RBI). It easily transfers money between banks across India. A bank branch should be NEFT enabled to permit a customer to transfer the funds to another party.
Some of the points to be considered while transferring money through NEFT.
- NEFT transaction timing on weekdays from 9.00 am to 7.00 pm and Saturday 9.00 am to 1.00 pm.
- There is no transaction limit, but Rs.50,000 is per transaction limit.
National Electronic Fund Transfer Process
When individual wishes to transfer an amount of money from his bank account to another person’s bank account, he may do so through the NEFT process rather than withdrawing the money and then paying it in cash or by issuing a cheque. NEFT has the primary benefit that it can transfer funds from any branch account to any other bank account at any given venue. The only condition is that both the sender and the recipient branches are NEFT-enabled. On the RBI website, you can check the list of NEFT-enabled bank branches, or call your bank’s customer service to confirm the same. The NEFT process also allows for cross-border, one-way movement of funds from India to Nepal under the Indo-Nepal Remittance Facility Scheme.
Steps To Follow To Transfer Money Through NEFT
The Bank IFSC Code, along with other information such as account holder name, bank account number, bank branch and additional information, is a must for authorizing an NEFT transfer.
- Step 1-Use your user ID and password to sign in to your online banking account.
- Step 2-Go to NEFT Fund Transfer page.
- Step 3- Enter recipient name, bank account number and IFSC code.
- Step 4-You should initiate an NEFT transfer once the beneficiary is successfully connected. Enter the amount to be transferred and click the send button.
Advantages of NEFT System
- There is no need for the physical presence of any party to perform a transaction.
- No bank visit is required, as long as an individual is keeping a valid bank account.
- NEFT is efficient and straightforward. It can be done in less than a minute, and hardly involves any significant formality.
- Confirmation of a successful transaction can be viewed easily via email notifications and text messages.
Difference Between NEFT And RTGS
RTGS refers to Real-Time Gross Settlement. Under this scheme, the beneficiary bank provides direct instructions for the transfer. The payment is gross, so each transaction is performed individually. These payments are final, and can not be withdrawn.
The main difference between NEFT and RTGS is that, unlike RTGS, the movement of funds occurs in batches. Hourly intervals are fixed for this reason, and the settlement is assigned to one such time slot.