NEFT stands for National Electronic Funds Transfer. It is an electronic payment system in India that allows individuals, businesses, and organisations to transfer funds from one bank account to another. NEFT enables hassle-free and secure money transfers across different banks in the country.
Features of NEFT:
- Settlement: NEFT operates in batches and settles transactions in hourly batches throughout the working hours of the banks on weekdays (except for bank holidays). The settlement process is done by the Reserve Bank of India (RBI).
- Timings: NEFT transactions can be initiated during the working hours of the bank. However, each bank sets its own cut-off time for accepting NEFT transactions.
- Transaction Limit: NEFT does not have any minimum or maximum transaction limit, although individual banks may impose their own limits.
- Charges: Banks may levy nominal charges for outward NEFT transactions, but inward NEFT transactions are generally free.
- Processing Time: NEFT transactions are typically processed and settled on the same day or the next working day, depending on the timing of the transaction.
To initiate an NEFT transaction, you would typically need the following details:
- Beneficiary’s bank account number
- Beneficiary’s name
- Name of the bank and branch
- Beneficiary’s bank account type (savings, current, etc.)
- IFSC code of the beneficiary’s bank branch
NEFT provides a convenient and widely accepted means of transferring funds electronically between different bank accounts in India.