Question

Write a short note on NEFT.

Answer 1

NEFT (National Electronic Fund Transfer) is a system that allows individuals, firms, and companies to transfer payments electronically between bank branches throughout the country. NEFT transactions are settled in batches. NEFT transactions occur 7 times per day on weekdays (8 am to 7 pm) and 6 times per day on Saturdays (8 am to 1 pm).

Some key features of NEFT are as follows:

1. A bank branch must be NEFT enabled to become a part of the NEFT funds transfer network.
2. An individual, firm or company can make use of NEFT even without having a bank account by depositing cash at a NEFT enabled bank branch.
3. In order to receive funds through the NEFT system, an individual, firm, or company must have an account with a NEFT enabled bank branch.
4. If one does not have a bank account, the maximum amount that can be transferred through NEFT system is 49999.
5. There is no minimum amount that can be transferred through NEFT when one has a bank account, but the maximum is ₹ 10,00,000 under retail Internet banking.
6. NEFT transactions take place in batches.
7. NEFT cannot be used to receive foreign remittances.
8. The sender of funds has to pay some charges for NEFT.
9. The receiver of funds has to pay no charges.