In this article we will discuss in detail about this method NEFT of Electronic Fund Transfer.
NEFT's Full Form National Electronic Fund Transfer is This is also a way to make Electronic Money Transfers and through this you can also transfer funds from one place to another or from another bank account to another bank account.
Although both NEFT and RTGS are the method of transferring funds from one bank A / c to another in Bank A / c, but there are some basic differences in both ways, and on the basis of these we have to choose this That's when RTGS should be used for fund transfer and when the NEFT-
Between NEFT and RTGS Difference
| RTGS | NEFT |
| RTGS should be used while Amount being transferred is 2 lakh or more. That is, transactions of High Value can be done through RTGS. | Whereas NEFT is used when the Amount being transferred is less than 2 lakhs. That is, transactions of Low Value are done through NEFT. |
| Fund transfers of at least Rs. 2,00,000 through RTGS and there is no limit to this, unless your bank branch decides the limit for you. |
Through NEFT, you can also fund one rupee and there is no limit to the maximum, unless your bank branch decides the limit for you. But sometimes Situation becomes such that where you have to transfer Amount from a bank branch in which your bank does not have A / c, through this kind of bank branch, you can get up to a maximum of 50000 rupees at a time. NEFT can do. |
| Fund transfer immediately via RTGS is immediately transferred instantly. | Whereas in the NEFT, the bank divides the entire process into one hour's batch and during any one hour, whatever request for NEFT, applies all those requests to 1 Single Batch. As a result, it can take between 0 and 120 minutes for funds to transfer through NEFT. |
| RTGS is based on Real Time. That is, as soon as someone has done RTGS, it is processed on Priority Basis, because its RTGS is usually used to transfer large amounts which are often used in Business Purpose and to delay their processing. But there is a possibility of financial loss of some kind. | Whereas NEFT Hourly Basis happens. That is, whenever a person requests the NEFT, its transaction is not processed immediately, but all those transactions are processed in one hour of Batch. Because NEFT is commonly used to transfer small amounts, which are the personal payments of people in most situations whose processing is delayed, there is no possibility of any financial loss. |
| RTGS is a fast way to fund transfer. | NEFT is a slow way to transfer funds compared to RTGS. |
If we understand the working of NEFT, then suppose that there is a Time Slot from 7 am to 8 pm. Now during transaction 7 to 8 o'clock, the transaction will be done by making the bank an hour's batch of transactions for all those who have NEFT done during this time period. As a result, NEFT can take up to 0 to 120 minutes to process.
Because, at the time when a user NEFT does, just 1 second before that time slot has been processed, due to which the transaction of that user will be processed in next time slot and next time slot In that the transaction of that user will be Time Allocate to be processed in the last second. In this way, it may take up to 0 to 120 minutes for any transaction under NEFT to complete completely.
Whereas RTGS does a user as soon as RTGS, it is processed immediately on the Priority Basis as soon as possible.
NEFT facility is offered both online and offline, just like RTGS. Some banks also provide facility to NEFT through ATM.
Steps to follow on the selection of Online Method for NEFT
In online mode, you can do NEFT using Internet Banking. In this also, the person you want to fund transfer has to add to your account as a Payee or Beneficiary Customer, and then the Bank checks the Beneficiary's Detail. The Bank takes about 12-24 hours to complete the Checking of Beneficiary.
When the Checking Process is completed by the Bank, the Beneficiary Customer is activated by the Bank, after which you can transfer funds to that Beneficiary Customer.
To add any person to your bank account as beneficiary or payee, you must have the following information related to the Beneficiary Customer otherwise you can not add it as a Beneficiary through your Internet Banking A / c-
- Beneficiary Customer should be Bank and Bank Branch's name.
- Beneficiary Customer should have Name and Account Number.
- Beneficiary Customer's Bank should have the Indian Financial System Code (known as IFSC.). IFSC Code is written on Cheque Book.
What is IFSC
The complete form of IFSC is the Indian Financial System Code. IFSC is a Alpha Numeric Code that uniquely identifies Banks that participate in the NEFT system. This is the digit of 11 digit, before 4 alphabet characters represent the bank. 5th Character is 0 and the last 6 characters represent the Bank Branch.
By using the IFSC Code, NEFT System identifies which bank has NEFT (NEFT Sending Bank Branch), which is NEFT (NEFT Receiving Bank Branch).
You need to know about Reserve Bank of India's website http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2009 to learn about Participate Banks and their IFSC Code in NEFT. Can use.
How is a fund transfer? This is a offline method.
- Firm, Individual, Corporation etc. Anyone who wants to transfer through NEFT through Money Transfer will first need to fill an Instruction Slip / Application Form, in which the Beneficiary Customer related information will be filled.
- Instruction Slip or Application Form You will find the same branch in which the NEFT facility will be available / enabled.
- Filling this Instruction Slip means that you are authorizing your Bank Branch to debit your Bank Account and debit the beneficiary's account.
- NEFT Sending Bank Branch prepares a message and sends it to its Pooling Center (also called NEFT Service Center).
- Pooling Center that message is operated by NEFT Clearing Center (which is operated by the National Clearing Cell, Reserve Bank of India, Mumbai.) Forward to the next Available Batch.
- The Clearing Center determines the transition of the fund to be transferred to Destination Bank Wise and fund Debit from the Sending Bank account and Fund Credit in the Account of Destination / Receiving Bank.
- When Clearing Center credits the account of the Destination Bank Branch by debiting the Fund Debit from the account of NEFT Sending Bank Branch, then to give information about this to Destination Bank Branch, through the Pooling Center (NEFT Service Center) through Bank Wise All Destination Banks Message is forwarded to fund transfer.
- As soon as Destination Banks receives a Message Send from the Clearing Center, they all credit Bank Branch Fund to the Beneficiary Customer's account.
Can Fund Transfer through NEFT?
Any Firm, Individual, Corporation etc. can use funds transferred from one bank account to another bank account using NEFT but they should have Bank Account in that Bank Branch and NEFT facility should also be enabled / available in that Bank Branch. .
But having a bank account is not mandatory. If someone is not a bank account in the bank branch and wants to transfer NEFT through Fund, then NEFT Instruction Slip can be filled and fund transfer. But in the form of NEFT through funds, a transfer can be transferred to Amount up to a maximum of 50,0000 rupees in a Transaction.
Can You Receive Through NEFT Funds?
Individuals such as Individual, Firm, who have Bank Account in Bank Branch, can receive all the funds sent by NEFT. But it is mandatory for the Beneficiary Customer to have a Bank Account in that Bank Branch, in which the NEFT Facility is enabled / Available.
Benefits of NEFT
- Amount Send Firm, Individual, Corporation does not need to send Physical Cheque, Demand Draft etc. to the beneficiary customer.
- The Beneficiary Customer does not have to go to the Bank Branch to receive the Fund and neither do any form of Paper Formalities.
- It costs less.
- Fund transfer can be done from anywhere, using Internet Banking. Sometimes, if transaction is not completed for some reason, it is not that your money is drowned or lost, but the money is transferred back to that customer's account which had NEFT.
- Useful for Low Value Transaction.
- There is no additional cost for the receiver.
- Each Batch is of one hour.
- Takes a little more time than RTGS.
Fund Refund Facility
If for some reason the fund credit has not been made in the Beneficiary Customer's account, then Destination Bank has the Responsibility that within two hours of the completion of the transaction in which the Transaction has been processed, Return to
Let's say that you have requested to transfer funds to any NEFT enabled bank branch at 12:20. Now the Fund Sender Bank Branch forwards the Request for Fund Transfer to its Pooling Center via NEFT Clearing Center for processing so that the transaction is processed in the current available Batch (which is 1:00 hrs.) Can go
If for some reason Destination Bank can not fund Credits in the account of Beneficiary Customer, then it will have to return the Transaction before funding Sending Bank at 3:00 before the Batch. And as soon as the Fund Sender Bank Branch receives this kind of Transaction, then it will have to re-credit the transaction account, immediately to the customer account of the NEFT.
Do not have Fund Credit in the Beneficiary Customer's account or what to do in case the credit is delayed.
If there is no fund credit in the Beneficiary Customer's account or there is any type of delay being fundraising, then in such a situation, NEFT Customer Facilitation Center (CFC) can be contacted. The person sending the money can contact the CFC from its bank branch and the Beneficiary Customer can contact the CFC from its bank branch.
Details of the bank's NEFT Customer Facilitation Center are available on the related bank's website. And this information is given to you by the Reserve Bank of India website http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2070 You can also get from
Some important things related to NEFT
- If the Fund is successfully credited to the Beneficiary Customer's account, the Fund Sender Bank Branch will send a confirmation message via SMS or email to the Fund Sending Customer. If you have an account in Bank Branch, Bank can contact you This is because whatever information that the Bank wants is related to you, it is taken only when you open Bank Account, but if you are a customer who does not have an account in Bank and want to send NEFT through Fund, Please provide Number or Email ID so that if required, Bank Door If you can be contacted and successfully credited to the Fund Beneficiary Customer's Account, you can send a confirmation message.
- If you are a customer who wants to NEFT but do not have an account in your bank branch, then you can not send through the Amount NEFT for more than Rs 50,000 in Cash Amount.
- NEFT facility must be available near both the fund Sending Bank and the Fund Receiving Bank.
Read the Mean of RTGS
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