BankingHow To

What Is NEFT And How Does It Works?

Many of you must have used NEFT before to send money but do you know What Is NEFT And How It Works? If No then Dont worry here I will with share you all the information about NEFT. It is also important to know about NEFT Because The bank keeps changing its rules day by day and it is very important to have complete information about all these things.

What Is NEFT And How Does It Works

After The Arrival of online banking or internet banking Nowadays people prefer to use Online Services to send and receive payments as well as they can also maintain their bank accounts through net banking. It has become elementary to maintain our account by sitting at home. Due to this, there is not much loss of their time and effort and they work easily.

There are three ways to transfer funds online which are NEFT, RTGS, and IMPS. But today in this post I will give You detailed information about NEFT. So if we talk about NEFT, then this is such a medium to send money online, through which we can easily send or receive money online from one account to another.

What is NEFT?

The full form of NEFT is National Electronic Fund Transfer and it is very useful in online fund transfers. It is a nationwide electronic fund transfer system that allows you to send and receive money easily and securely from one bank account to another.

Every NEFT settlement is operated in batch-wise format. Through NEFT, money is sent through this system to all NEFT-enabled banks All over India on an individual basis.

it is very important to have the Bank Account Number, IFSC Code, Bank Account Holder Name, and other basic details of the bank Like the bank branch Before performing any NEFT transfer.

The system of this fund transfer is Conducted by RBI and it was started in the year 2005. NEFT provides the facility to make transactions to the customers of the bank in India so that the customer of the bank can easily make transactions to any other NEFT-enabled bank account. It is also a very safe way to Send and Receive Money.

The facility of NEFT is mainly done in two ways, The first one is an offline mode which is done in the branches of banks and the other is an online mode which is available to the customers through online banking and is done in batches.

The Online Way is very popular because it is a time-saving and easy method that NEFT provides the transactions can be done very easily through online banking. Here you can also see that NEFT is slightly different from other systems like RTGS and IMPS. Where your money sent in RTGS and IMPS is immediately credited to the bank account. On the Other hand in NEFT, your money is received by the bank at the set timetable by the bank.

How To Send Money Through NEFT Transfer?

Here I will provide you you step by step guide to Send Money Through NEFT Transfer with complete information about two different procedures of NEFT.

Online Way For NEFT Transfer

Follow the given steps below to transfer funds online.

Step 1: First of all You have to login into your net banking account. If you do not have an online banking account, then you can also register it through your bank’s website.

Step 2: Now you have to add the beneficiary details of the payee. And to do this, you will also have to fill in some details of the Beneficiary in the ‘Add New Payee’ section, which are:

  • Account Number.
  • Bank Account Holder Name
  • IFSC Code
  • Account Type

Step 3: After Adding the payee, you have to Select NEFT according to the fund transfer mode.

Step 4: Now select the account where you want to transfer money, here you can select payee, after that just enter the amount that you want to transfer and then add remarks.

Step 5: Then click on submit.

Offline Way to NEFT Transfer

Step 1: First of all Visit Your bank.

Step 2: Fill out all the NEFT/RTGS forms. After that provide the following details about your beneficiary in the form:

  • Name
  • Account Number
  • Bank Name
  • Branch
  • IFSC Code
  • Account Type
  • Account Number
  • An amount that you want to transfer

Step 3: Now submit the form that you filled and after that, the bank staff will further authorize to transfer money.

Conclusion

Here I have tried to explain What Is NEFT And How Does It Works? If this article has helped you can also share this information so that others can also get help from this post.

Thanks to Everyone who has read this article. In this article, we explained everything in detail. We have tried our best to give you complete information about NEFT, but still, if you have any questions, doubts, or suggestions regarding this post, feel free to ask us in the comment section. We will try to answer your questions as soon as possible. 

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