NEFT full form is National Electronic Funds Transfer. It is an electronic payment mechanism used in India, managed by the RBI (Reserve Bank of India) to transfer money between bank accounts. On a deferred net settlement basis, transactions are settled in batches rather than one at a time. Both people and corporations can use NEFT transfers, which can be started using online or mobile banking or by going to a bank location.
Features of NEFT
NEFT transactions can take place 24/7, without
Maximum transaction is up to Rs.10 lakh per transaction.
Due to the use of a secure network and two-factor authentication, NEFT transactions are safe. The Reserve Bank of India also oversees the NEFT mechanism. (RBI).
NEFT fees are negligible and are set by the banks at their discretion.
NEFT Charges and Timings
NEFT transactions are available 24 hours a day, 365 days a year. However, the NEFT charges vary from bank to bank.
Here are some advantages of leveraging the NEFT facility:
Banks in India widely accept this method of money transfer.
NEFT can be initiated through internet banking as well as mobile banking.
This service is available round the clock, 365 days.
Effective transfer and settlement of funds.
Disadvantages of NEFT
Money is not instantly transferred to the recipient
Additional charges are levied by some Banks
Can only be used for domestic transfer of funds
NEFT transaction is highly technical in nature, cannot be used by everyone
NEFT (full form – National Electronic Funds Transfer) has transformed the way we transfer money in India. It is a safe, convenient, and low-cost method of transferring funds that is widely accepted by banks throughout the country. While it has some limitations, such as not being real-time and having time constraints, NEFT remains a popular choice for domestic transactions, providing a dependable and efficient mode of payment.
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