National Electronic Funds Transfer (NEFT) :

NEFT is a system similar to RTGS with certain differences. RTGS handles big ticket transactions, whereas NEFT handles smaller size transactions. Most branches are using this facility to transfer funds in an efficient manner. Once the applicant for the transfer of funds furnishes full and correct details (correct account details means correct name of the beneficiary, the correct account number, the branch and bank of the beneficiary, and the correct IFS code, etc.) funds can be transferred to the beneficiary’s account by  the remitting bank. Transfer of funds through NEFT is safe, quick. It reduces the paper work and is cost effective.

NEFT is an innovative electronic media for effecting transfer of funds. Special features of NEFT are:

1. NEFT is a funds transfer system which enables a customer of a bank to transfer funds to another customer of another bank having account with any participating bank

2. NEFT allows both intra and inter-bank funds transfer within a city and across cities

3. Since it is in the form of e transfer, without any physical movement of instruments, funds can be transferred quickly

4. The beneficiary customer gets funds in his account on the same day or at the earliest on the next day depending upon the time of settlement

5. Both the originating and destination bank branches should be on NEFT platform

6. The correct details of IFSC, beneficiary’s name, account numbers, etc., should be furnished to the originating bank.

7. The originating bank branch can keep track of the status of the NEFT transaction.

8. In case for any reason the destination branch is not able to afford credit to the beneficiary’s account, destination branch/bank have to return the funds to the originating bank within two hours of completion of the batch through which the transaction was processed

9. It is not only easy method of transfer of funds, but also enables the remitters to have user friendly and cost effective transfer of funds