NEFT Full Form: How Does NEFT Transaction Work?

Do you know that the transfer of funds is done electronically nowadays? NEFT is one of the methods of transferring funds that was developed by the RBI (RBI Full Form). Moreover, the NEFT full form is the National Electronic Funds Transfer. So, let’s quickly know about NEFT in detail.  

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What is the full form of NEFT? 

The full form of NEFT is National Electronic Funds Transfer. The NEFT electronic payment system was developed by the RBI to make it simpler for customers to transfer money between Indian banks. Also, It is a reliable, efficient, cost-efficient, and safe way to transfer money between banks.

The beneficiary’s name and account number, the bank’s name and branch details, and also the beneficiary branch’s IFSC code must all be provided by the remitter at the time of the transfer of funds. Hence, RTGS and NEFT transactions are now available at all of our CBS branches. Moreover, by utilising the Branch Locator on the home page of our website or by clicking this link, you can discover the addresses and also the IFSC codes of branches that handle NEFT.

How Does NEFT Transaction Work?

Now, let us discuss how NEFT transaction works:- 

1) Request

You inform your bank that you wish to use NEFT to send money to a certain person’s account. You give the recipient’s bank information, including account information and bank name and location.

2) Beginning

Your bank gathers the details and the requested money. Moreover, they debit the funds from your account and begin the NEFT process.

3) Batching 

NEFT requests are gathered by banks and also get combined in batches after being received over a certain time period.

4) Sending to RBI

The batch of NEFT is requested from your bank and is received by the Reserve Bank of India. This functions as an electronic money transfer management and processing centre.

5) Processing by the RBI

The RBI examines each request before sending it to the appropriate bank where the receivers have accounts.

6) Receiving Bank

Using the information you supplied, the receiving bank locates the recipient’s account after receiving the NEFT request.

7) Crediting Account 

The recipient’s bank account is then credited with the funds. This procedure could take a while, typically a few hours.

8) Notification

Both the sender and the recipient are informed by their banks that the transaction was accomplished.

Timings of the NEFT Transactions 

Earlier NEFT transactions were not done on the weekends but now it is possible on weekends also and can be done 24/7. 

NEFT Transactions Fees

Transactions fees that NEFT takes are:- 

Income	Tax Paid or Charges Paid Through Branch
Upto 10,000	Should pay Rs. 2.50
Above 10,000 and up to the 1Lakh	Should pay Rs. 5
Above 1Lakh and up to the 2 Lakh	Should pay Rs. 15
Above 2 Lakh	Should pay Rs. 25

No charges are paid when they are done through net banking and mobile banking. 

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