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NEFT, or National Electronic Fund Transfer, is a system that allows you to transfer money electronically between bank accounts. It is one of the most popular methods of transferring money in India, and it is very easy to use.
What is NEFT?
NEFT (National Electronic Fund Transfer) is a banking instrument that allows you to transfer money from your bank account to another person’s bank account. NEFT transactions are settled in batches, which means that the money may not be transferred immediately when you initiate the transaction. The NEFT settlements take place at specific times during the day and your bank will provide you with the NEFT settlement schedule.
How to use NEFT?
In order to make an NEFT payment, you will need the following information:
– The name of the beneficiary bank
– The beneficiary’s account number
– The IFSC code of the beneficiary bank
– The amount of money you want to transfer
You will also need to have your bank account number and the IFSC code of your bank. You can find this information on your bank statement or on the website of your bank.
National Electronic Fund Transfer:
Once you have all the required information, you can make an NEFT payment by following these steps:
– Log into your internet banking account and select the NEFT option
– Enter the amount you want to transfer and the IFSC code of the bank branch you are transferring funds to
– Select the account from which you want to make the payment and enter your password
– Click on confirm to initiate the NEFT transfer The NEFT process usually takes a few hours to complete, but some banks may take up to 24 hours to credit the NEFT payments. NEFT is a convenient way to transfer funds from one bank account to another without having to visit a branch. NEFT is available on all days of the week, except for second and fourth Saturdays.
What are the benefits of NEFT?
NEFT is a quick, convenient and secure way to transfer funds electronically between banks. NEFT transactions are typically processed within two hours, which makes it a popular choice for businesses and individuals who need to move money quickly. NEFT is also less expensive than other methods of electronic fund transfers, such as wire transfers. Overall, NEFT is a fast, affordable and secure way to transfer money electronically. For more information on NEFT, please visit the National Electronic Funds Transfer website.
Difference between RTGS Vs. NEFT:
NEFT (National Electronic Funds Transfer) is a system that allows individuals to transfer money from one bank account to another bank account. The NEFT system is used for transferring funds between individuals, companies and other entities. NEFT operates on a Deferred Net Settlement basis where the settlement of funds takes place in batches. This means that only when the NEFT batch in which a particular transaction is processed, is the money transferred from one account to another. NEFT batches are processed at regular intervals throughout the day.
RTGS (Real Time Gross Settlement) on the other hand is a system where the transfer of funds takes place on a real-time basis. This means that once you have transferred the money, it is credited to the recipient’s account immediately. The RTGS system operates on a gross settlement basis which means that all transactions are settled together in one batch at the end of the day. This ensures that there is no risk of funds being transferred between banks twice.
Importance of NEFT:
- The NEFT system was introduced in India in November 2005, while the RTGS system was introduced in India in February 2008.
- The NEFT system is available for transactions up to Rs.50 lakh, while the RTGS system is available for transactions above Rs.50 lakh.
- NEFT charges a maximum of Rs.25 per transaction, while there are no charges levied on RTGS transactions.
- NEFT transactions are settled in batches, while RTGS transactions are settled on a real-time basis.
- NEFT is available for all types of transactions, while RTGS is only available for certain types of transactions.
- NEFT operates on a Deferred Net Settlement basis, while RTGS operates on a Real-Time Gross Settlement basis.
Conclusion
NEFT (National Electronic Fund Transfer) is a method for electronically transferring funds between bank accounts. NEFT is a fast, simple, and safe method of electronically transferring funds between banks. Because NEFT transactions are often completed within two hours, it is a popular solution for businesses and people who need to shift money rapidly.
