Banking & Payments

glossaryTermPage.hero.prefix NEFT (National Electronic Funds Transfer)?

An electronic fund transfer system in India that enables bank-to-bank transfers in batches, available 24/7 with near-instant settlement.

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NEFT is one of India's most widely used electronic payment systems, operated by the Reserve Bank of India. Since December 2019, NEFT operates 24/7/365 with half-hourly settlement batches. There is no minimum or maximum transaction limit. NEFT requires the beneficiary's bank account number, IFSC code, and name. It's preferred for large business-to-business payments where instant settlement isn't critical.

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A business transfers ₹5,00,000 to a supplier's bank account via NEFT at 10 AM. The transfer is processed in the next settlement batch and the supplier receives the funds within 30 minutes.

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What is the difference between NEFT and RTGS?

NEFT processes in batches (every 30 minutes) and has no minimum limit. RTGS processes individually in real-time and requires a minimum of ₹2 lakh. RTGS is for urgent, large-value transfers.

Is NEFT available on holidays?

Yes, since December 2019 NEFT operates 24/7/365 including weekends and bank holidays. However, processing may take slightly longer during off-hours.

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