Abbreviation of NEFT's is National Electronic Fund Transfer. It is a most secure electronic payment method managed by RBI through which one can easily transfer and receive funds from one account to another bank account across India.
NEFT is dependent on the batch processing system i.e. Entire NEFT settlements are performed in the batch-wise format. A remitter needs to fill all mandatory details such as Name, Bank, Branch and Account no, IFSC code etc.
There are mainly two methods of NEFT
a) Offline mode there is a need to go to branches of the bank
b) Online mode act as an efficient and popular transaction method nowadays, it can be done through net banking and in batch. Very easy and time-saving process.
1 rupee to unlimited funds can be transferred.
a) Transaction happens in hourly batches.
b) There are 23 settlements that take place between 8 AM to 7 PM (Monday to Friday).
c) On Saturday, 6 settlements from 8 am to 1 PM.
d) NEFT does not take place on Sunday, Second and Fourth Saturday, RBI and Bank Holidays.
e) It takes maximum time up to 2 hours after submitting any transaction on batch.
Every bank has its own NEFT operation but the basic steps are almost identical. Sketch of the workflow of NEFT are described below:
First, you need to fill entire details of the form accurately in both modes whether it is online or offline. Form filling is generally used to fetch your informative details.
Bank process all retrieved information and authorize it. After authorization, Bank issues a message which is sent to their NEFT service center. NEFT send the particular message to Clearing Centre which maintained by National Clearing Cell.
National clearing center analyze and sort out all funds transaction as per bank and arranged Entries in such a manner that money can be easily sorted. After sorting, NEFT service center is notified through a message. They are Directed to send money to a Remitter's (receiver) account
Following is the list covering some top banks facilitating NEFT service:
e) Union Bank
f) Syndicate Bank
Benefits of NEFT System
a) Very secure and efficient
b) Low charges
c) Rapid money settlement
d) Less delay
e) No paper formalities required