BANKING AFFAIRS

Detailed explanation-1: -Answer: National Electronic Funds Transfer (NEFT) is a system that enables you to transfer money from one bank account to another bank account electronically. The NEFT system is maintained and operated by the Reserve Bank of India (RBI).

Detailed explanation-2: -Ans: National Electronic Funds Transfer (NEFT) is a nation-wide centralised payment system owned and operated by the Reserve Bank of India (RBI).

Detailed explanation-3: -NEFT is an electronic payment system developed by RBI to facilitate transfer of funds by customers from one bank to another bank in India. It is a secured, economical, reliable and efficient system of funds transfer between banks.

Detailed explanation-4: -Under NEFT, funds are transferred using RBI’s (Reserve Bank of India)NEFT service to the credit account with the other participating. RBI works as the service provider and transfers the credit to the other bank’s account. NEFT operates on a deferred net settlement (DNS) basis which settles transactions in batches.

Detailed explanation-5: -Reserve Bank of India has introduced an electronic funds transfer system called “National Electronic Funds Transfer” System (hereinafter referred to as “NEFT System” or “NEFT” or “System”, as appropriate).