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.
It is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. By the word ‘batches’, it means that instructions received for transferring the money will not be done as soon the request is received. So, the settlement takes place with all transactions received until the particular cut-off time.
In NEFT system, presently there are hourly batches – there are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays. This can be explained by an example: If you submit your request for transfer of payment at say, 1: 10 PM on any of the weekday, the settlement will get started at next batch i.e. 2 PM to 3 PM batch along with all the requests which were submitted in the 1 PM to 2 PM batch.
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