expand NEFT . state any two features of NEFT
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National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of India (RBI). Started in November 2005, the setup was established and maintained by Institute for Development and Research in Banking Technology (IDRBT).[1] NEFT is a facility enabling bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis. It is done via electronic messages. Unlike Real-time gross settlement (RTGS), fund transfers through the NEFT system do not occur in real-time basis. NEFT settles fund transfers in half-hourly batches with 23 settlements occurring between 8:00 AM and 7:00 PM on week days and the 1st, 3rd and 5th Saturday of the calendar month. Transfers initiated outside this time period are settled at the next available window. No settlements are made on the second and fourth Saturday of the month, or on Sundays, or on public holidays.
NEFT facilities are available at 74,680 branches offices of 101 banks across the country (out of around 82,400 bank branches) as of January 2011, and well as online through the website of NEFT-enabled banks and work on a batch mode. NEFT has gained popularity due to its saving on time and the ease with which the transactions can be concluded, This reflects from the fact that 42% of all electronic transactions in the 2008 financial year were NEFT transactions.
TWO FEATURES ARE
(i)NEFT is an electronic payment system that uses a secure mode of tranferring funds from one bank branch to another bank branch.
(ii) There is no minimum or maximum limit of amount of funds that could be transferred using NEFT.
(iii) The remitter can track the NEFT transaction through the originating branch.
National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of India (RBI). Started in November 2005, the setup was established and maintained by Institute for Development and Research in Banking Technology (IDRBT).[1] NEFT is a facility enabling bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis. It is done via electronic messages. Unlike Real-time gross settlement (RTGS), fund transfers through the NEFT system do not occur in real-time basis. NEFT settles fund transfers in half-hourly batches with 23 settlements occurring between 8:00 AM and 7:00 PM on week days and the 1st, 3rd and 5th Saturday of the calendar month. Transfers initiated outside this time period are settled at the next available window. No settlements are made on the second and fourth Saturday of the month, or on Sundays, or on public holidays.
NEFT facilities are available at 74,680 branches offices of 101 banks across the country (out of around 82,400 bank branches) as of January 2011, and well as online through the website of NEFT-enabled banks and work on a batch mode. NEFT has gained popularity due to its saving on time and the ease with which the transactions can be concluded, This reflects from the fact that 42% of all electronic transactions in the 2008 financial year were NEFT transactions.
TWO FEATURES ARE
(i)NEFT is an electronic payment system that uses a secure mode of tranferring funds from one bank branch to another bank branch.
(ii) There is no minimum or maximum limit of amount of funds that could be transferred using NEFT.
(iii) The remitter can track the NEFT transaction through the originating branch.
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NEFT:
National Electronic Fund Transfer (NEFT) functions as a Deferred Net Settlement-based fund transfer mechanism. As opposed to the continuous, individual settlement in RTGS, fund transfer transactions are settled in batches. NEFT currently runs in half-hourly batches.
Two NEFT properties are explained:
1) Reduces effort and time:
- All a sender needs to do to make an NEFT payment is sign in to their net banking account and choose the appropriate beneficiary.
- The correct transfer amount must be entered, and the transaction must then be verified, all it takes is that.
- The sender or remitter is not required to send the beneficiary a demand draught or check of any type.
- The NEFT system is a quick and effective way to transfer money.
2) Payments are made in a secure manner:
- The fact that NEFT transactions take place in a secure way is another fantastic advantage.
- Banks frequently use numerous verification procedures to confirm the sender's identity, preventing difficulties with fraud and theft.
- The fact that the Reserve Bank of India oversees NEFT further increases the overall security of this payment method.
The fact that there is no upper limit on transaction amounts is NEFT's most important advantage. As a result, this method of payment is quite helpful for companies that frequently need to transfer significant sums of money, as well as for people with comparable needs.
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