NEFT – A Latest Fund Transfer Mode
NEFT is latest fund transfer mode in banking system. NEFT means, National Electronic Fund Transfer system. It is fund transfer system which facilitates the user to transfer the fund from his bank account to the bank account of receiver. If any person or any company wants to send money, they can use this mode.
Owning a bank account is the key requirement for using NEFT. It is not necessary that both parties should have account in same branch or in same bank. It is electronic fund transfer mode that works among all bank branches. One bank branch to other bank branch transaction is possible while using NEFT.
In India nearly 75000 bank branches are NEFT enable out of total 82000 branches. This transaction mode is easy to use, safe and cost effective for people in general. NEFT use requires IFSC code of bank branches involve in transactions. It works for identification of bank branch. This facility is available in internet and mobile banking mode. For users from corporate sector many branches provide bulk uploading facility.
FOR USING NEFT MODE-
User can transfer any amount by using NEFT by fulfilling following requirements-
IFSC (Indian Financial System Code) code of bank branches where amount has to be transferred. Name and Account no of Receiver.NEFT facility is available in bank working timings. And fund is credited to receiver account on the same day or next working day.
Person or firm to whom amount has to be transferred is known as beneficiary. Name of Beneficiary, bank account no and bank branch IFSC code is required for using NEFT mode.
Before transferring fund, bank checks all the detail of beneficiary given by user and if all are correctly entered then beneficiary is activated and fund has been transferred. Bank takes almost one day for this processing. Transferring of fund has some direction and transaction password. There is no limit of amount. Any amount can be transferred by NEFT.
There is time duration, decided by RBI only in which between NEFT transactions can be done, not like RTGS in which transaction can be done at any time after the activation. Offline mode is also available for using NEFT mode by filling required form.
Bank incurred extra charges for transferring of the fund. Like some bank charge Rs.5/transaction for transferring fund less than 1 Lakh and Rs.25/transaction for transferring of fund more than 1 Lakh.
NEFT is advantageous mode of transfer of fund as it does not require draft or cheque or other instrument. So user can be free of tension of losing or tearing off of the instrument. Using NEFT, the fraudulent activities can be minimized so it is reliable source of transfer. User does not need to visit bank branch personally and wait for his chance. So it is time saving option. User can easily get information about transaction by SMS or email. As internet banking is becoming popular among users so NEFT is also getting popularity.