Question

What is the full form of NEFT in Banking sector?

Answer 1

The full form of NEFT in computer is: NATIONAL ELECTRONIC FUNDS TRANSFER

What is NEFT transfer in SBI ?

Nation Electronics Funds Transfer was introduced by the Reserve Bank of India in 2005. It’s a system to transfer money from one bank to another throughout India provided the bank used for the transaction is NEFT enabled.   

The customer who wants to transfer fund to the beneficiary should have:

• Name of the beneficiary 

• Account Number of the beneficiary 

• IFSC code of the beneficiary’s bank 

What are the benefits of NEFT?

1. Secure Platform

2. Highly dependable since it’s RBI regulated

3. Economical

4. Faster Transaction 

5. Paperless transaction 

6. No need to visit Bank

7. Flexible payment options

Also read: What is the Full form of CIF in Bank?

Is Internet Banking and NEFT the same?

Internet Banking and NEFT are two different ways of fund transfer. NEFT fund transfer is done between two NEFT enabled banks using electronic messages. 

In Internet banking, the fund transfer is done through a website/app using an internet connection. The fund transfer is done instantly whereas it takes about 48 hours in internet banking. 

You can use NEFT only during the Bank’s business hours whereas internet banking can be accessed at any time. 

How can I transfer money using NEFT?

For transfer of money online through NEFT:

• Keep the beneficiary’s name, account number and IFSC code with you

• Login to the bank's official website using your username and password.

• Select the add option and fill the required fields

• Accept the terms and conditions and then click on confirm

• Use the security code sent in your mobile to validate beneficiary

• Select inter-bank transfer link 

• Select transaction types as NEFT and the select the beneficiary your want to transfer fund from the list

• Enter the amount to be transferred

• Accept the terms and conditions and then click on confirm

What are the disadvantages of NEFT?

• NEFT transfer is a highly technical method which requires minimum knowledge of internet. Hence one of the major problems with net banking is that, not everyone can access this without having prior experience of internet and computer. Especially people from rural areas find this a big issue.
• Although Indian banks take proper security measures for public information but NEFT transaction is not entirely secure. It is quite possible that people can hack your data if you use any unsecured browser. It is one of the major reasons people don’t find NEFT transaction reliable.

Does NEFT come with a transfer limit?

When it comes to cash transaction via NEFT, generally there is no limit regarding the total amount of it. You can transfer Rs.50,000 per transaction. Although few banks have set their own limitations like the upper limit of HDFC bank is Rs. 25 lakh per customer.

What are the differences between RTGS and NEFT?

• RTGS ( Real Time Gross Settlement ) is a system for fund transferring where money is transferred between banks in real-time and on gross basis. Whereas NEFT is an online transaction fund system between the financial institutions of India.
• In RGTS the credit happens in beneficiary account in real time between banks whereas in NEFT it happens  between banks in hourly batch.