What is the full form of NEFT
NEFT: National Electronic Funds Transfer
National Electronic Funds Transfer (NEFT) is an Indian system of electronic transfer of money from one bank to another. It was introduced by Reserve Bank of India. It is an electronic fund transfer system that is based on Deferred Net Settlement (DNS) which settles transaction in batches.
A bank branch must to be NEFT-enabled to take part in NEFT fund transfer. It takes usually one day to transfer the fund from one account to the beneficiary account. Settlements and clearance of the funds take place in batches according to the guidelines of the RBI.
What is required before using NEFT
A bank’s customer must have the following information before using NEFT.
1. Name and full Bank account number of the beneficiary to whom, you want to transfer money).
2. Indian Financial System Code (IFSC) of the beneficiary Bank/Branch.
Difference between RTGS and NEFT
Although NTGS and NEFT both are used for electronic fund transfer, but there are some specific differences between them on the basis of some criteria.
| Criteria | NEFT | RTGS |
|---|---|---|
| Full Form | National electronic funds transfer | Real time gross settlement |
| Settlement speed | it is done in batches so it is slower. | it works in real time so it is faster. |
| Timing (monday to friday) | 8:00 am – 6:30 pm | 9:00 am – 4:30 pm |
| Timing (saturday) | 8:00 am – 12:30 pm | 9:00 am – 1:30 pm |
| minimum amount of money to transfer | no minimum limit | 2 lacs |
| Maximum amount of money to transfer | no limit | no limit |
| When does the credit goes to beneficiary account | hourly batch between banks | at real time between banks |
| Suitable for | small money transfer | large money transfer |
| Charges | upto 10,000 – Rs. 2.5 from 10,001 – 1 lac – Rs. 5 from 1 – 2 lacs – Rs. 15 above 2 lacs – Rs. 25 | Rs. 25-30 (upto 2 – 5 lacs) Rs. 50-55 (above 5 lacs) (lower charges for first half of day) |