NEFT Full Form
The Full form of NEFT is National Electronic Fund Transfer. NEFT is a system of electronic transfer of money/funds from one bank to another. It was introduced by Reserve Bank of India and to take part in NEFT fund transfer, a bank branch must be NEFT-enabled. NEFT is based on Deferred Net Settlement (DNS) which settles transaction in batches. Usually, it takes one day to transfer the fund from one account to the beneficiary account. Settlements and clearance of the funds take place in batches according to the guidelines of the RBI. Before using NEFT, a bank’s customer must have the necessary information like, Name and Bank account number of the beneficiary to whom, he want to transfer money and Indian Financial System Code (IFSC) of the beneficiary Bank/Branch. NEFT service can be used anywhere to transfer the funds through Internet banking, Mobile banking, m.dot, Pockets etc. Under NEFT, there is no minimum limit to transfer the amount of money and also, there is no maximum limit to transfer the money. NEFT settles fund transfers in half-hourly batches, unlike in Real-time gross settlement (RTGS), in which funds are transferred/occur in real time basis. Outward transactions at originating bank branches (charges payable by the remitter) are; for transactions up to ₹10,000 – ₹2.50 (+ GST), above ₹10,000 and up to ₹1 lakh – ₹5 (+ GST), above ₹1 lakh and up to ₹2 lakhs – ₹15 (+ GST) and for transactions above ₹2 lakhs – ₹25 (+ GST).