National electronic fund transfer NEFT is a nationwide payment system facility one to one fund transfer. under this scheme, individuals, Firms and corporates can electronically transfer fund from any bank branch to any individual, firm or Corporate having an account with any other bank branch in the country participating in the scheme.
For being part of the NEFT fund transfer network, a Bank branch has to be NEFT enabled individual firms or Corporate maintaining account with the bank branch can transfer fund using NEFT. even search individual who do not have bank account can also deposit cash at the NEFT enabled branches with instruction to transfer funds using NEFT However such cash remittance will be restricted to a maximum of rupees 50000 per transaction. such customers have to furnish full details including complete address telephone number etc. NEFT, thus facilitates originators or remitter to initiate fund transfer transaction even without having a bank account.
Individuals, funds or corporates maintaining account with a Bank branch can receive funds through NEFT system. it is therefore necessary for the beneficiary to have an account with the NEFT enabled destination Bank branch in the country.
The NEFT system also facilitates one way cross border transfer of funds from India to Nepal. this is known as the "Indo Nepal remittance facility scheme" a remitter can transfer fund from any of the NEFT enabled branch to Nepal irrespective of whether the beneficiary in Nepal maintain an account with the bank branch in Nepal or not.
There is no limit either minimum or maximum on the amount of fund that could be transfer using NEFT. however the maximum amount for transaction is limited to rupees 50000 for cash basis remittance and remittance to Nepal.
There is no restriction of centres or of any geographical area within the country. the NEFT system take advantage of the core banking system in banks. Accordingly the settlement of fund between originating and receiving banks take place centrally at Mumbai, whereas the branches participating in NEFT can be located anywhere across the length and breadth of the country.
