NEFT (National Electronic Funds Transfer)

Meaning :

NEFT, or National Electronic Funds Transfer, is defined as a secure electronic funds transfer system that enables the transfer of money from one bank account to another

within India. NEFT operates by processing transactions in half-hour batches throughout the  day and is available 24/7. The transfer is facilitated using the recipient's account number,  IFSC code, and the name of the bank involved in the transaction.

Importance in Finance :  

NEFT is recognized as a reliable and secure method for conducting electronic money transfers, enhancing the overall efficiency of financial transactions.

It is suitable for a wide range of applications, including personal payments and business  transactions.

The system eliminates the need for physical currency, promoting a cashless transaction environment.

NEFT contributes to maintaining detailed digital transaction records, which are essential for financial tracking and accountability.

Uses  :

Salary payments to employees across various industries.

Vendor and supplier payments, facilitating smooth business operations.

Personal fund transfers between bank accounts for various financial needs.