With demonetization, an age of digital transactions has been ushered in. There are a wide number of options available that can be used to transfer funds online. But, the number of these options can sometimes be a little overwhelming.
One of the most popular mediums of money transfer is NEFT payment. Here is a comprehensive guide to NEFT which helps explains why it is so widely used and appreciated.
What is NEFT?
NEFT or National Electronic Fund Transfer is a mode of money transfer in which funds are moved from one bank account to another. It is based on a system of deferred settlement, meaning it is transferred in batches. Presently, it occurs in twelve batches from the hours of 8 AM to 7 PM.
Although there are no restrictions on the amount of money that can be transferred in one transaction, individual banks have set upper limits.
Process
1. Firstly, the bank branch that you have your account in needs to be NEFT enabled. Secondly, your bank account ought to be net-banking enabled. This will equip you with a unique login ID and password and also sync your cellphone number to your bank.
2. When making the transfer, you will be asked for the bank details of the person to whom you wish to transfer the funds to. Details will include the name of the person, his/her bank account number and the 11 digit alpha-numeric IFS code.
3. Choose the “Transfer Funds” option and transfer the money after entering the OTP (one time password) that you will receive on your phone.
4. The transfer of funds will take place when the next batch of settlement is scheduled.
Cost/Charges
Depending on the amount of money that has been transferred, the bank may charge a nominal amount ranging from Rs.2.50 to Rs. 25.
Advantages of NEFT
1. Efficient and Secure
NEFT payments are highly efficient and allow for quick transfer of funds from one bank account to another. It is an extremely secure method with neglibible chances of error, because the only thing you would be expected to do is to enter the correct information.
2. Cost Efficient
NEFT payments cost next to nothing. It is much more cost efficient than other fund transfer mediums like money orders and demand drafts.
3. Reliable
Payments made through NEFT are monitored and regulated by the Reserve Bank of India. This makes it extremely accurate and completely risk-free.
The ease, accuracy and cost-effective nature of NEFT payments lends itself well to personal transactions as well as transactions between business entities. Thus, NEFT is one of the best ways to conduct a financial transaction in India without having to pay a hefty fee and with assured efficiency and security.
One of the most popular mediums of money transfer is NEFT payment. Here is a comprehensive guide to NEFT which helps explains why it is so widely used and appreciated.
What is NEFT?
NEFT or National Electronic Fund Transfer is a mode of money transfer in which funds are moved from one bank account to another. It is based on a system of deferred settlement, meaning it is transferred in batches. Presently, it occurs in twelve batches from the hours of 8 AM to 7 PM.
Although there are no restrictions on the amount of money that can be transferred in one transaction, individual banks have set upper limits.
Process
1. Firstly, the bank branch that you have your account in needs to be NEFT enabled. Secondly, your bank account ought to be net-banking enabled. This will equip you with a unique login ID and password and also sync your cellphone number to your bank.
2. When making the transfer, you will be asked for the bank details of the person to whom you wish to transfer the funds to. Details will include the name of the person, his/her bank account number and the 11 digit alpha-numeric IFS code.
3. Choose the “Transfer Funds” option and transfer the money after entering the OTP (one time password) that you will receive on your phone.
4. The transfer of funds will take place when the next batch of settlement is scheduled.
Cost/Charges
Depending on the amount of money that has been transferred, the bank may charge a nominal amount ranging from Rs.2.50 to Rs. 25.
Advantages of NEFT
1. Efficient and Secure
NEFT payments are highly efficient and allow for quick transfer of funds from one bank account to another. It is an extremely secure method with neglibible chances of error, because the only thing you would be expected to do is to enter the correct information.
2. Cost Efficient
NEFT payments cost next to nothing. It is much more cost efficient than other fund transfer mediums like money orders and demand drafts.
3. Reliable
Payments made through NEFT are monitored and regulated by the Reserve Bank of India. This makes it extremely accurate and completely risk-free.
The ease, accuracy and cost-effective nature of NEFT payments lends itself well to personal transactions as well as transactions between business entities. Thus, NEFT is one of the best ways to conduct a financial transaction in India without having to pay a hefty fee and with assured efficiency and security.
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