Marketing Project - Neft - National Electronic Fund Transfer
Essay by Paul • July 8, 2011 • Essay • 596 Words (3 Pages) • 2,382 Views
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NEFT - National Electronic Fund Transfer:
- Like RTGS, RBI has introduced another type of funds transfer system called NEFT (National Electronic Funds Transfer). The operations and functions of the system are similar to RTGS.
- In NEFT, there are four clearing settlement batches (9.30, 10.30, 12.00, & 4.00) and the return time allowed is 24 hours.
- RBI has introduced NEFT system mainly to send small value payments at nominal cost.
- We can send funds from our bank to other bank-branches, which have IFS Code, and joined in NEFT network.
- So far, 42 banks have joined in this system and more than 10000 of their branches are under this network.
- NEFT was introduced in 2005 and is highly improved version of EFT (Electronic Funds Transfer) that is available at select center whereas NEFT is available nationwide.
Specific features of NEFT:
- In NEFT only upto Rs. One Lakh can be transferred per transaction.
- Some banks are giving free NEFT to its customer up to an amount of Rs. 50,000/-.
- NEFT facility is available at approximately 32407 banks branches of banks in India. These branches may be available in remote corner of country
Transfer:
This is one of the busiest sections in a bank. The work done here can be classified into two as follows:
(1) The transfer of fund from one a/c to another with both the accounts held in GMCB.
(2) The transfer of fund from one a/c to another with one held at GMCB and other held at some other bank.
In the first case, a cheque is issued by one GMCB customer to another (both having their accounts at GMCB). Here, the beneficiary presents the cheque at transfer section with a filled slip showing the details of his a/c. After this the transfer section makes entry as per the slip and the cheque and transfers the fund from the remitting customer's a/c (a/c number mentioned in cheque) to beneficiary customer's a/c.
In the second case, the cheques are provided by the clearing department to the transfer section. Here there can be two cases
i. A remitting customer can have an a/c at GMCB, in which case the transfer section debits his a/c and credits the a/c of the bank whose cheque is presented by clearing section to transfer section.
ii. A beneficiary customer can have an a/c at GMCB, in which case the transfer section credits his a/c and debits the a/c of the bank whose cheque is presented
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