NEFT (National Electronic Funds Transfer)

Meaning :

NEFT, or National Electronic Funds Transfer, is an electronic funds transfer system that securely facilitates the transfer of money from one bank account to another within India.

NEFT processes transactions in half-hour batches throughout the day and operates 24/7.

Transfers are executed using the recipient's account number, IFSC code, and the name of the  bank.

Importance in Finance :  

NEFT provides a reliable and secure method for transferring funds between bank accounts.

It is suitable for both personal payments and business-related transactions.

The system does not require any physical currency, making it efficient and modern.

NEFT helps maintain comprehensive digital transaction records for accountability and  tracking.

Uses  :

Salary payments to employees in various sectors.

Payments to vendors and suppliers for products and services.

Personal fund transfers between individual accounts for various purposes.