Marketing Project – Neft – National Electronic Fund Transfer
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NEFT – National Electronic Fund Transfer:
Like RTGS, RBI has introduced another type of funds transfer system called NEFT (National Electronic Funds Transfer). The operations and functions of the system are similar to RTGS.
In NEFT, there are four clearing settlement batches (9.30, 10.30, 12.00, & 4.00) and the return time allowed is 24 hours.
RBI has introduced NEFT system mainly to send small value payments at nominal cost.
We can send funds from our bank to other bank-branches, which have IFS Code, and joined in NEFT network.
So far, 42 banks have joined in this system and more than 10000 of their branches are under this network.
NEFT was introduced in 2005 and is highly improved version of EFT (Electronic Funds Transfer) that is available at select center whereas NEFT is available nationwide.
Specific features of NEFT:
In NEFT only upto Rs. One Lakh can be transferred per transaction.
Some banks are giving free NEFT to its customer up to an amount of Rs. 50,000/-.
NEFT facility is available at approximately 32407 banks branches of banks in India. These branches may be available in remote corner of country
Transfer:
This is one of the busiest sections in a bank. The work done here can be classified into two as follows:
The transfer of fund from one a/c to another with both the accounts held in GMCB.
The transfer of fund from one a/c to another with one held at GMCB and other held at some other bank.
In the first case, a cheque is issued by one GMCB customer to another (both having their accounts at GMCB). Here, the beneficiary presents the cheque at transfer section with a filled slip showing the details of his a/c. After this the transfer section makes entry as per the slip and the cheque and transfers the fund from the remitting customers a/c (a/c number mentioned in cheque) to beneficiary customers a/c.
In the second case, the cheques are provided by the clearing department to the transfer section. Here there can be two cases
A remitting customer can have an a/c at GMCB, in which case the transfer section debits his a/c and credits the a/c of the bank whose cheque is presented by clearing section to transfer section.
A beneficiary customer can have an a/c at GMCB, in which case the transfer section credits his a/c and debits the a/c of the bank whose cheque is presented