Explain the national electronic funds transfer according to 6 marks question also write its features
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Answer:
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.[1] NEFT enables 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, fund transfers through the NEFT system do not occur in real-time basis. NEFT settles fund transfers in hourly batches with 23 settlements occurring between 00:30 hrs. to 00:00 hrs.
From December 16, 2019, there would be 48 half-hourly batches occurring between 00.30 am to 00:00 am every day regardless of a holiday or otherwise,[2]
As of November 30, 2019, NEFT facilities were available at 1,48,477 branches/offices of 216 banks across the country and online through the website of NEFT-enabled banks. NEFT has gained popularity due to the ease and efficiency with which the transactions can be concluded.
There is no limit – either minimum or maximum – on the amount of funds that can be transferred using NEFT.[3]