RBI NEFT System : Reserve Bank of India

Organization :Reserve Bank of India
Facility : NEFT System Operate

Home Page : http://rbi.org.in/
NEFT :http://rbi.org.in/scripts/FAQView.aspx?Id=60

NEFT System Operate

National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds 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.

Related : RBI Procedure For Operating RTGS System : www.statusin.in/1674.html

Are all bank branches in the country part of the NEFT funds transfer network :
For being part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled. The list of bank-wise branches which are participating in NEFT is provided in the website of Reserve Bank of India at http ://www.rbi.org.in/scripts/neft.aspx

Who can transfer funds using NEFT :
Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals who do not have a bank account (walk-in customers) can also deposit cash at the NEFT-enabled branches with instructions

Is there any limit on the amount that could be transferred using NEFT :
No. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances and remittances to Nepal.

Whether the system is centre specific or has any geographical restriction- :
No. There is no restriction of centres or of any geographical area within the country. The NEFT system takes advantage of the core banking system in banks. Accordingly, the settlement of funds between originating and receiving banks takes places centrally at Mumbai, whereas the branches participating in NEFT can be located anywhere across the length and breadth of the country.

NEFT system operate :
Step-1 :
An individual / firm / corporate intending to originate transfer of funds through NEFT has to fill an application form providing details of the beneficiary

Step-2 :
The originating bank branch prepares a message and sends the message to its pooling centre (also called the NEFT Service Centre).

Step-3 :
The pooling centre forwards the message to the NEFT Clearing Centre (operated by National Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next available batch.

Step-4 :
The Clearing Centre sorts the funds transfer transactions destination bank-wise and prepares accounting entries to receive funds from the originating banks (debit) and give the funds to the destination banks(credit). Thereafter, bank-wise remittance messages are forwarded to the destination banks through their pooling centre (NEFT Service Centre).

Step-5 :
The destination banks receive the inward remittance messages from the Clearing Centre and pass on the credit to the beneficiary customers’ accounts.

About Us :
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937.

The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.