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.