What is the Full Form of NEFT ?

NEFT - National Electronic Funds Transfer

National Electronic Funds Transfer is a nation-wide system that facilitates individuals, firms and corporates to electronically transfer funds from any bank account to another. For being part of the NEFT funds transfer network, a bank branch has to be NEFT-enabled.

A Customer must possess the following information before using NEFT :-

• IFSC (Indian Financial System Code) of the beneficiary Bank/Branch
• Full account number of the beneficiary
• Name of the beneficiary

How does it differs from RTGS
Unlike RTGS where settlement is on real time basis, NEFT operates on a Deferred Net Settlement (DNS), ie. transactions are settled in hourly batches. For example - There are 25 settlements from 9 am to 7 pm on week days, So any transaction initiated after a designated settlement time would have to wait till the next designated settlement time.