Banking Terms
NEFT - National Electronic Funds transfer National Electronic Funds Transfer (NEFT) is an electronic payment system facilitated by the Reserve Bank of India (RBI) that enables individuals and businesses to transfer funds electronically between banks in India. It operates on a deferred net settlement (DNS) basis, where transactions are processed and settled in batches at specific intervals throughout the day. How NEFT Works NEFT transactions are initiated by customers through their respective banks. To initiate a transfer, the sender needs to provide the recipient's bank account number and the Indian Financial System Code (IFSC) of the recipient's bank branch. The IFSC is crucial as it ensures accurate routing of funds to the intended recipient. Timing and Processing NEFT transactions are processed in batches at half-hour intervals during the working hours of the banks. Transactions initiated after the designated cut-off times are queued for the next available batch. While th...