This scheme was launched in 2005, October. NEFT is the nationwide electronic fund transfer system.
• NEFT is a system of funds transfer to enable account to account funds transfer without involving physical movement of paper instruments, like cheques etc.
• This system was first recommended by Shere Committee set-up by RBI.
• National Electronic Funds Transfer (NEFT) is electronic funds transfer system, which facilitates transfer of funds to other bank accounts in over 63000 bank branches across the country. This is a simple, secure, safe, fastest and cost effective way to transfer funds especially for Retail remittances.
• The objective of RBI’s NEFT system are (i) to facilitate an efficient, secure and economical system of fund transfer, (ii) to make system reliable and expeditious for funds transfer in banking sector, and (iii) to relieve the stress on existing paper based fund transfer and cheque clearing system.
• NEFT is useful to banks in following ways:
Funds are transferred on the same day across presently 4 metro cities and latest transferred on next day in other cities.
Helps transfer funds rather than only information.
In all metros, settlement is thrice in a day.
Banks can help customers to get inter-bank TT services.
PROCESSING INFORMATION BY RBI: SOME STEPS
• RBI centers process the files received from all centers and upload to respective branches of destination banks.
• Service branches process the file and print branch level report containing beneficiary details.
• Destination branches credit the amounts to the beneficiary’s account.’
NEFT FEE CHARGED BY BANKS
Normally banks vary in their charges. Following charges are a sample charges which some banks charge.
(a) Inter Bank Fund Transfer on deferred net settlement which settles transactions in batches.
(b) Inward Remittance Charges : NIL
(c) Outward Remittance Charges
(i) Up to 1 Lac : NIL
(ii) Above 1 Lac to 2 Lac : 15/- per Transaction
(iii) Above 2 Lac : 25/- per Transaction