Full Form of NEFT
National Electronic Funds Transfer
NEFT Full Form refers to National Electronic Funds Transfer. NEFT is a national payment system which enables individuals and companies to transfer funds electronically from one bank to the other. In simple words, NEFT refers to the electronic system of fund transfer between two banks. Anyone with an internet banking account can transfer funds to the beneficiary using NEFT.
Customers, who wish to use NEFT for fund transfer, have to provide following information:
- Name of the beneficiary
- Account Number of the beneficiary
- IFSC (Indian Financial System Code) of the bank’s branch in which the beneficiary has his or her bank account.
NEFT is one of the safest, fastest and most cost effective methods for retail remittances. Unlike the RTGS system which is based on real-time settlement, in NEFT transactions are done through electronic messages on ‘one-to-one’ basis.
Presently, NEFT transactions and settlements take place in hourly batches. It makes 12 settlements between 8:00 hrs and 19:00 hrs during week days. On Saturdays it makes 6 settlements between 8:00 hrs and 13:00 hrs. No settlements are made on Sundays and on Public Holidays.
NEFT was introduced in India in the year 2005. Ever since November 2005, It has been the most used method for fund transactions in India.