Let us discuss the meaning and benefits of NEFT.
Meaning: The full form of NEFT is National Electronic Fund Transfer.
What is it? It is a method of transferring money online from one bank to another. Money can be transferred from one account to another in a safe and effective way in this manner. It is paperless and hence involves less paperwork and cheap transaction. Reserve Bank of India has issued guidelines to banks to not charge anything from customers for NEFT and hence most banks offer this service free of charge. Both the banks engaging in this sort of transaction must have this code for their designated branches.
What is IFSC code? IFSC stands for Indian Financial System Code.
What are the benefits? The main benefit is less paperwork. There is no paperwork involved and hence the customers don’t have to visit their bank branches.
No lower limit: Any amount can be transferred in this facility. It doesn’t make any difference even if the amount is as low as one rupee.
How much time is taken? It takes place at 6 times a day and 3 times on Saturdays. Usually it happens on the same day or sometimes it may take even 3 days depending on server.
What are needed? The bank account number, branch code, name of the branch and IFSC code are all that are needed to transfer funds through this mode. One must also need to maintain enough funds in the account before making the transfer.
What are the necessary safety precautions? As it is an online process, the customer has to take care of his online banking passwords to prevent any case of fraud.
Thus in total it is a fast, cheap and very efficient mode of transferring money and hence is making financial transactions easy day by day.