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12 May 2021

What is NEFT in Banking Terms?

NEFT refers to the banking service wherein you can transfer funds electronically from one bank account to another in a safe and secure manner. It is hassle-free and can be easily availed irrespective of your location. So, what is the full form of NEFT? The NEFT full form in banking terms is National Electronic Funds Transfer. NEFT mode of payment can be used for making your debit card and credit card payments.

Features and Benefits of NEFT

Here is a list of the advantages of NEFT which make it a popular choice for payments:

  • It allows electronic transfer of funds from one bank account to another

  • You can transfer funds to an individual or company account if the beneficiary bank supports the NEFT scheme

  • It saves time and effort as you can avail NEFT online by logging into your netbanking account, selecting the beneficiary, entering the amount, and verifying the transaction

  • Payments occur electronically and can be conveniently initiated online through netbanking services, mobile banking, or through an ATM

  • It is a paperless service

  • Multi-step verification makes NEFT transfers safe and secure

  • NEFT is reliable as it is managed by the Reserve Bank of India (RBI). Also, The transfer of funds via NEFT is organised and occurs in batches

  • It is mostly available 24x7

Who is Eligible to Transfer Money Via NEFT From One Bank to Another?

If you are a corporate, firm, or individual who has a savings/current account with a NEFT-listed bank, you will be eligible to avail the NEFT banking service. NEFT transactions can be done from one account to another in the same bank as well as to accounts with other banks. However, to enjoy the NEFT benefits, you must enter the right NEFT details.

What Details are Required for NEFT?

The NEFT details required to complete a transaction include the beneficiary information along with your own bank account details. You need to first enter the beneficiary’s account number, IFSC code, account holder’s name. Once this is added, you can select the beneficiary from the ‘List of Beneficiaries’ and proceed with the NEFT transaction through netbanking to complete the payment.

Popular Indian banks such as HDFC Bank, Axis Bank, Citibank, RBL Bank, State Bank of India, etc., offer NEFT services. However, before you opt for the service, you should take a look at the NEFT transfer process along with the NEFT limit of the specific bank. The NEFT fees and charges are also important to note before initiating a transaction as they tend to vary from bank to bank. For additional details, you can contact the customer care number of your specific bank.

Apart from NEFT. you can also use IMPS or RTGS to transfer money from one account to another. Know about the difference between IMPS vs NEFT vs RTGS and select the mode that suits you best!

Frequently Asked Questions

  • ✔️What is a NEFT transfer?

    NEFT is the electronic transfer of funds from one bank account to another. It can be easily availed online via netbanking. All you need to do is add the beneficiary (bank account) details and verify the NEFT transaction.

  • ✔️What is the full form of NEFT?

    The NEFT full form is National Electronic Funds Transfer.

  • ✔️What are the benefits of NEFT?

    NEFT is a safe, secure, and time-efficient way of transferring funds electronically. It is an organised service and the payments are cleared in batches. It is paperless, reliable, and can be availed online.