Vishal Vishwakarma
NEFT or National Electronic Funds Transfer is an electronic payment system that facilitates the transfer of funds between bank accounts in India. The system was launched by the Reserve Bank of India (RBI) in 2005 to enable individuals, companies, and institutions to transfer money electronically without the need for physical cheques or demand drafts.
NEFT transactions are conducted through the internet banking portals of participating banks, which are connected to the RBI's NEFT payment gateway. The payment gateway operates in a secure environment and uses the Secure Sockets Layer (SSL) encryption protocol to ensure that all transactions are safe and secure.
NEFT transactions can be initiated by the account holder through their bank's internet banking portal or by visiting the bank branch. The transaction can be made either as a one-time transfer or as a recurring transfer, depending on the account holder's needs.
To initiate a NEFT transaction, the account holder must provide the following details:
The name of the beneficiary (the person or company receiving the funds)
The beneficiary's bank and branch name
The beneficiary's account number
The type of account (savings, current, or other)
The IFSC code of the beneficiary's bank branch
The IFSC code is a unique code assigned to each bank branch by the RBI. It is used to identify the bank branch and ensure that the funds are credited to the correct account.
Once the transaction is initiated, the account holder's bank sends a message to the RBI's NEFT payment gateway with the details of the transaction. The payment gateway then sends the message to the beneficiary's bank, which processes the transaction and credits the funds to the beneficiary's account.
NEFT transactions are processed in batches, which are settled at specific intervals during the day. The settlement times are fixed by the RBI and are currently four times a day on weekdays and two times a day on Saturdays.
NEFT transactions are subject to certain limits, which are set by the RBI. The current limits for NEFT transactions are:
For individual customers: Rs. 10 lakhs per day (across all bank accounts)
For corporate customers: Rs. 50 lakhs per day (across all bank accounts)
NEFT transactions are generally considered to be safe and secure, as they are conducted in a secure environment and use advanced encryption technologies to protect the user's information. However, as with any electronic transaction, there is always a risk of fraud or unauthorized access. To minimize this risk, it is recommended that account holders keep their internet banking login credentials safe and secure, and avoid sharing them with anyone else.
In conclusion, NEFT is a convenient and secure way to transfer funds between bank accounts in India. With its simple process and fast settlement times, NEFT has become an increasingly popular payment option for individuals, companies, and institutions alike.
0 Comments