NEFT Full Form

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NEFT Full Form

Arpa Chatterjee
Last updated on August 28, 2022

    NEFT is an abbreviated form for National Electronic Funds Transfer.

    It is a National transfer portal of money from one bank to another. This is done via electronic mode. The Reserve Bank Of India initiated NEFT. In NEFT, a Deferred Net Settlement system is followed, which helps in settling transactions in batches through electronic mode.

    NEFT Full Form

    The working of NEFT happens in batches , therefore, it takes at least one day for the transfer of funds from one account to another. The whole process works under RBI guidelines and regulations.

    Fund clearance and settlement occur in different rounds, as mentioned in RBI guidelines. Only NEFT-enabled banks are allowed to undergo funds transfer through this portal. Furthermore, for NEFT, certain requirements must be followed:

    • For the transfer of money to any beneficiary, a complete name is required along with a full account number.
    • A transfer can only be done with the help of the IFSC code, the Indian Financial System Code.

    Two concepts of NEFT and RTGS are easily confused among individuals. These concepts differ from the following points:

    • NEFT stands for National Electronic Funds Transfer, whereas RTGS stands for Real-Time Gross Settlement.
    • As the name suggests, RTGS is faster as it works in real-time, whereas NEFT works in batches and takes a longer duration.
    • There is a time duration for both transfers. The NEFT works from 8:00 am to 6:30 pm on weekdays, but on Friday, it works from 8:00 am to 12:30 pm only.
    • RTGS works from 9:00 am to 4:30 pm on weekdays and 9:00 am to 1:30 pm on Saturdays.
    • NEFT is a suitable method for transferring a small amount of money. RTGS is used for large amounts.
    • A lump sum amount of charge is applied to the transfers via electronic mode. In NEFT, the charge ranges from Rs. 5 – 25, whereas for RTGS, it is Rs. 50.

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