Explain National Electronic Funds Transfer (NEFT).

What is NEFT?

 

National Electronic Funds Transfer (NEFT) is a payment system which facilitates one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.

 Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals who do not have a bank account (walk-in customers) can also deposit cash at the NEFT-enabled branches with instructions to transfer funds using NEFT.

NEFT is operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. The settlement takes place in batches and are settled in hourly time slots. There is no ceiling on the minimum or maximum amount that can be transferred through NEFT i.e, can even transfer Re 1.


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