Marketing Project - Neft - National Electronic Fund Transfer

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:

(1) The transfer of fund from one a/c to another with both the accounts held in GMCB.

(2) 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 customer's a/c (a/c number mentioned in cheque) to beneficiary customer's a/c.

In the second case, the cheques are provided by the clearing department to the transfer section. Here there can be two cases

i. 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.

ii. 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