Full form of NEFT is National Electronic Funds Transfer. It is one of the widely used electronic funds transfer systems in India which enables individuals, firms and corporate to electronically transfer funds from any bank account to another.
As an example, lets say you as an individual wants to transfer Rs5000 to your friend’s account and your bank is not same as that of your friend’s bank. To initiate the money transfer process first you need to login to your bank website using your net-banking credential and then provide the following details:
– Name of your friend.
– Bank account number of your friend
– IFSC (Indian Financial System Code) of your friend’s Bank/Branch
If you do not know IFSC code, you can ask your friend to look at the cheque book issued by the bank and IFSC code will be mentioned on that or you can try getting the same on bank website or by calling the bank. This is eleven digit alphanumeric code and unique to each branch of bank. First four tells the name of bank and remaining seven tells about branch number.
Note that bank may charge service charge for each NEFT transaction as per directions laid down by RBI (Reserve Bank of India)
Frequently asked questions about NEFT answered above:
What is NEFT?
What is Full Form of NEFT?
What details you need to initiate NEFT transaction?
What is IFSC code?
How to know IFSC code of Bank?
Are there any service charges for NEFT?
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