NEFT (National Electronic Funds Transfer)

Meaning :

NEFT, or National Electronic Funds Transfer, is defined as a secure electronic system that allows money to be transferred from one bank account to another within India.

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

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

Importance in Finance :  

NEFT is a reliable and safe method for transferring money.

It is suitable for both personal payments and business transactions.

There is no need for physical currency when using NEFT.

It helps maintain digital records of all transactions for better tracking.

Uses  :

Salary payments to employees.

Payments to vendors and suppliers for goods and services.

Personal fund transfers between accounts.