The full form of NEFT is National Electronic Funds Transfer. It is a reliable way to send funds without needing to handle cash. It is also a popular system for transferring money between bank accounts across India without needing to handle cash.
NEFT works by processing transaction in batches. This means, your bank collects several transfer requests and sends them together at the specific times throughout the day. Once the batch is processed, the money is credited to the recipient’s account. The system is available every day of the year.
Who Can Use NEFT Services?
– Individuals: If you have a savings or current bank account, you can use NEFT.
– Businesses: Companies with bank account can also use NEFT for their transactions.
– Walk-in Customers: If you don’t have a bank account, you can initiate an NEFT transaction by depositing cash at any NEFT-enabled bank branch. However, there is a limit of Rs 50,000 per transaction for cash deposit.
– Recipients: The person or business receiving the money must have a bank account with an NEFT-enabled bank.
Documents And Details Required:
– Your own bank account number.
– The full name of the person or business you are sending money to.
– The recipients bank account number.
– The Indian Financial System Code (IFSC) of the recipient’s bank branch.
Advantages Of Using NEFT
– Available throughout the year.
– No upper limit for online transactions
– A secure and dependable way to transfer funds.
– Often has low or no transaction fees, depending on your bank
Meanwhile, there is no minimum amount for online NEFT transactions, making it flexible for various needs.
