Glossary · Banking & Finance
NEFT
National Electronic Funds Transfer — a centralised, nation-wide payment system operated by the Reserve Bank of India that facilitates one-to-one funds transfer.
NEFT settles transactions in batches at hourly intervals (8 AM to 7 PM on weekdays and Saturdays). There is no minimum or maximum limit for NEFT. It is widely used for retail payments, salary credits, vendor payments, and tax remittances. NEFT is becoming less popular compared to IMPS and UPI for retail transfers, but remains essential for high-value, batch-based corporate settlements.
Examples
A company credits monthly salaries to all 200 employees via a single NEFT file upload on its bank's corporate internet banking portal.