NEFT (National Electronic Fund Transfer)
NEFT System :- National Electronic Funds Transfer (NEFT) system is a nationwide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch. The system uses the concept of centralized accounting system and the bank’s account that is sending or receiving the funds transfer instructions, gets operated at one centre.
Beneficiary receives the money :-The beneficiary gets the credit on the same Day or the next Day depending on the time of settlement.
The information required :- The essential information that the remitting customer has to furnish is: Beneficiary details such as beneficiary name and account number. Name and IFSC of the beneficiary bank branch. IFS Code (IFSC);
Different from MICR code :- Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch.
Real Time Gross Settlement System (RTGS)
About RTGS System :-
“RTGS” stands for Real Time Gross Settlement.
RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and on “gross” basis.
This is the fastest possible money transfer system through the banking channel.
Settlement in “real time” means payment transaction is not subjected to any waiting period.
The transactions are settled as soon as they are processed.
“Gross settlement” means the transaction is settled on one to one basis without bunching with any other transaction.
Minimum / maximum amount stipulation for RTGS transaction :-
The RTGS system is primarily for large value transactions.
The minimum amount to be remitted through RTGS is Rs.2 lakh. There is no upper ceiling for RTGS transactions.