What is National Electronic Fund Transfer (NEFT)?

Posted on 25 Jul 2020 By Admin

National Electronic Fund Transfer (NEFT) is a nation-wide payments system that facilitates to transfer funds from one bank’s account to another. individual/firm/corporate can electronically fund transfer from one NEFT enabled account to another NEFT enabled account under this scheme. Unlike real-time gross settlement fund transfers through the NEFT method do not occur in a real-time basis. It settles in hourly batches.

NEFT Timings

NEFT works on a deferred settlement basis which means the transactions are carried out in batches. RBI has regularised that NEFT transactions will be available 24*7 on all days of the year, including holidays.

What are the benefits of using the National Electronic Funds Transfer? 

1. Round the clock availability on all days of the year.
2. Near-real-time funds transfer to the beneficiary account.
3. NEFT is a secure platform.
4. No need of using a cheque or demand draft for money transfer.
5. confirmation to the remitter by SMS / e-mail on credit to the beneficiary account.
6. No charges to savings bank account customers for online NEFT transactions.
7. Available for one-way funds transfers from India to Nepal.

What are the essential details required for remitting funds through the NEFT system?

The Following are the required elements of beneficiary's identification: 

Beneficiary's Name
Beneficiary's Branch Name
Beneficiary's Bank Name
Beneficiary's Account Type
Beneficiary's Account Number
Beneficiary's Branch IFSC