NEFT - National Electronic Funds Transfer Details
What is NEFT and How to Send Money?
Many of you may have used NEFT to send money before, but do you have the correct information about what NEFT is? Since banking rules change every day, it's essential to have up-to-date information on these issues. Ever since online banking or internet banking came into existence, people have been visiting banks less often and conducting all their transactions from the comfort of their homes. This saves them a lot of time and allows them to work without any hassle. NEFT, RTGS, and IMPS are the three main methods for online fund transfers. Today, we will provide detailed information about NEFT. So, if we talk about NEFT, it is one of the ways people send money online, allowing us to easily transfer money from one account to another online. So, today I thought, why not provide you with complete information about what NEFT is, how it works, and what its benefits are. So, let's get started and find out what NEFT is.
What is NEFT?
NEFT stands for National Electronics Fund Transfer, which is also called "नेशनल इलेक्ट्रॉनिक फ़ंड ट्रांसफ़र" in Hindi. It is a nationwide electronic fund transfer system that enables easy transfer of money from one bank account to another. All NEFT transactions are processed in batches, and it involves transferring money from one bank to another across India. Before initiating any NEFT transfer, it is crucial to have an IFSC code for the bank, along with other details like bank account number, bank branch, and account holder's name. The fund transfer system through NEFT is operated by the Reserve Bank of India (RBI) and was launched in 2005. NEFT provides banking customers in India with the facility to transfer their funds to other NEFT-enabled bank accounts. It is also highly secure. Unlike real-time fund transfers, NEFT transfers are not processed instantly. Instead, NEFT transactions are processed in batches on the first, third, and fifth Saturdays of the week, between 8:00 AM and 7:30 PM (batch timings) with a batch interval of half an hour. Additionally, there are no settlements on the second and fourth Saturdays, Sundays, or holidays. NEFT transactions are primarily established in two modes: offline mode, which is carried out at bank branches, and online mode, which is available to customers through internet and mobile banking. It is highly popular due to its time-saving and straightforward process via online banking. If you look at it, NEFT is slightly different from other measures like RTGS and IMPS. When you send your money through RTGS and IMPS, it gets deposited into the recipient's bank account instantly. In NEFT, your money is received by the bank at the scheduled time set by the bank.
Steps for NEFT Transfer Process
Here, I will provide you with information about two different NEFT transfer processes. Online Procedure for NEFT: Follow the steps below to transfer funds online: Step 1: Log in to your internet banking account. If you don't have an online banking account, you can also register for one through your bank's website. Step 2: Afterward, you will need to add the beneficiary as per the beneficiary's details. Here, the beneficiary refers to the person to whom you want to transfer money. To do this, you'll have to fill in some details about the beneficiary in the "Add New Beneficiary" section, which includes: Account Number Name IFSC Code Account Type Step 3: After adding the beneficiary, you will need to select NEFT as the fund transfer mode. Step 4: Now, you'll have to choose the account from which you want to transfer the funds, select the beneficiary, enter the amount you want to transfer, and add comments (optional). Step 5: Finally, click on "Submit." Offline Procedure for NEFT: Step 1: Visit your bank. Step 2: Fill out the NEFT/RTGS form available there. Then, provide the following details about the beneficiary on the form: Name Account Number Bank Name Branch IFSC Code Account Type Account Number The amount you want to transfer Step 3: After filling out the form, submit it at the bank so that they can further process the fund transfer.
How Does NEFT Work?
Here, I have attempted to explain the general process of NEFT transfers, but please note that these details may vary from one bank to another. Online Procedure for NEFT: Follow the steps below to transfer funds online: Step 1: Log in to your internet banking account. If you don't have an online banking account, you can also register for one through your bank's website. Step 2: Afterward, you will need to add the beneficiary as per the beneficiary's details. Here, the beneficiary refers to the person to whom you want to transfer money. To do this, you'll have to fill in some details about the beneficiary in the "Add New Beneficiary" section, which includes: Account Number Name IFSC Code Account Type Step 3: After adding the beneficiary, you will need to select NEFT as the fund transfer mode. Step 4: Now, you'll have to choose the account from which you want to transfer the funds, select the beneficiary, enter the amount you want to transfer, and add comments (optional). Step 5: Finally, click on "Submit." Offline Procedure for NEFT: Step 1: Visit your bank. Step 2: Fill out the NEFT/RTGS form available there. Then, provide the following details about the beneficiary on the form: Name Account Number Bank Name Branch IFSC Code Account Type Account Number The amount you want to transfer Step 3: After filling out the form, submit it at the bank so that they can further process the fund transfer.