NEFT full form is National Electronic funds transfer. National Electronic Funds Transfer was introduced by the Reserve Bank Of India. It is an electronic transfer of money from one bank to another and it is an Indian System.
It is mandatory for all banks on SEFT (Special Economic Funds Transfer System) to migrate with NEFT(National Electronic Funds Transfer).
Before transferring money from one account to another account firstly we have to deposit it in the destination account. You can spend your time staying in the queue at the bank and filling up a form to complete this process.
NEFT was started in 2005 it is one of the online money transfer methods and the most popular way is currently used.
It can easily transfer money between two banks across India.NEFT can transfer Funds from any bank account to any other bank account.
It does not have transaction limits no maximum or minimum and the NEFT system is available round the clock on all days(24X7X365).
You can transfer any amount of money to an account on a one-on-one transfer basis and it transfers in single a day because NEFT does not have maximum limits for transfer funds.
NEFT has many benefits as no bank visits are required and there is no need for physical presence for any party to prefer to transfer money.
Another benefit that is you can see your confirmation of successful transition through mail or text messages. It shows on your phone through your registered number.
How does NEFT work?
To transfer money through NEFT has a limited time which is 8.00 AM to 6.30 PM also need some documents such as Bank IFSC(Indian Finacial System Code), Account holder name, Account Number, and bank branch and additional information.
By using NEFT you spend some bank charges like the transaction amount Rs-10,000/- the transaction charges are Rs-2.5/-rupees and the transaction amount Rs-10,000 to 1,00,000 the charges of the bank are Rs-5/ + GST then it can increase according to your transaction limit.
For transferring money it has a process that is it make a munch in how many transitions in one hour then it transferred.
In RTGS(Real-time Gross Settlement) money can transfer directly and then settled in the bank but in NEFT money transfers online only.
What is the difference between NEFT and RTGS?
NEFT works only working hours between 8.00 AM to 6.30 PM, not Holliday because if more people transfer money in the night even if they face some problem it will not solve immediately, so it works only working day.
To transfer money how many transitions in one hour combined and make a munch then transfer it because in this process resources and use of server cost spend less so it made a munch.
To complete this process minimum of 3-4 working hours because it collects all transactions in one or two hours and then transfers them to banks. This process is only in digital form.
Transfer money through NEFT needs some hour then but in RTGS if someone wants to transfer money above 2laks immediately so he will be using RTGS, not NEFT because NEFT required some time but RTGS processes money directly transfer to the destination bank.