How NEFT Transactions Works?
To transfer money using NEFT, the remitter have to fill in the details of the recipient and should initiate the fund transfer. Once the fund’s transfer was initiated, the originating bank prepares a message and sends the message to its pooling center, also called the National Electronic Funds Transfer Service Centre. The pooling center forwards the message to the National Electronic Funds Transfer Clearing Centre, operated by the Reserve Bank of India, to be included in the next available batch. The Clearing Centre sorts the fund’s transfer transactions beneficiary bank-wise and prepares to account entries to receive funds from the originating banks (debit) and give the funds to the beneficiary banks (credit).
NEFT Full Form
NEFT stands for National Electronic Funds Transfer. We often hear the word NEFT in the financial world but many have doubts about what is NEFT and how it works. NEFT is a country-wide electronic fund transfer system for sending money from one bank account to another account in a safe and hassle-free manner. NEFT allows the electronic transfer of funds or money from one bank account to another bank account. NEFT transactions are processed online. Reserve Bank of India and its customers are involved in NEFT transactions. All Indian Banks can participate in NEFT transactions.