NEFT Transfers

NEFT Transfer

As per saurav_kataruka asked so just trying to explain NEFT

NEFT (National Electronic Fund Transfer) is a way or mode to transfer funds/money from any bank branch to any bank branch.

You can use NEFT to transfer any bank based in India but can not use to transfer money outside country as it is restricted by geographical boundaries.
Which ever transaction you do online before 3:30PM (1530Hours) is reflected in account on same day but all the payments or transactions made after 1530 comes up on next day.

To avail this service you need to visit your bank branch and get it activated from there after filling Online Banking Third Party Transfer Form. It take 3-5 working days to get this service activated. Activation and transaction charges depends upon your bank (depends upon bank to bank).


How does the NEFT system operate?

Step-1: The remitter fills in the NEFT Application form giving the particulars of the beneficiary (bank-branch, beneficiary's name, account type and account number) and authorizes the branch to remit the specified amount to the beneficiary by raising a debit to the remitter's account. (This can also be done by using net banking services offered by some of the banks.)

Step-2: The remitting branch prepares a Structured Financial Messaging Solution (SFMS) message and sends it to its Service Center for NEFT.

Step-3: The Service Center forwards the same to the local RBI (National Clearing Cell, Mumbai) to be included for the next available settlement. Presently, NEFT is settled in six batches at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays

Step-4: The RBI at the clearing center sorts the transactions bank-wise and prepares accounting entries of net debit or credit for passing on to the banks participating in the system. Thereafter, bank-wise remittance messages are transmitted to banks.

Step-5: The receiving banks process the remittance messages received from RBI and effect the credit to the beneficiaries' accounts.

Tried to explain all the important things involved but still if i am missing any point then please update.

option to receive NEFT payment is available only in Core-Banking Branches.

These days, practically all credit card co. provides the option to pay the Credit Card bill through NEFT. Greatly reduces the hassles of dropping a cheque (unless of course u have the option of direct debit)

Thanks for the explanation...

Originally Posted by saurav_kataruka

Thanks for the explanation...

can you see a small button like this Attachment 2326 on the right hand side bottom corner of my post

here is the source link ... interested members will get many more details here: http://www.centralbankofindia.co.in/english/neft.asp

Originally Posted by smoothvibes

can you see a small button like this Attachment 2326 on the right hand side bottom corner of my post

of course i can ... but i cannot repo u at this moment. i tried. remember the last time i repped u wasnt long ago. i havent been spreading and getting much repo for some time ... as my my signature reads ... i am a bit busy for some days... your repo is pending... dont worry...

in the mean time ... u can return me the favor in advance ... :lol: :lol:

i have done several EFTs during the last few years for different clients however, i didn't know it is available in India and that too in such a simple way ... great post :clap: :clap: could not repo u right now, but i surely will ....