NEFT (National Electronic Funds Transfer): Definition, Full Form, & How to Make Payments
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25 JANUARY, 2024

Imagine being able to move money from your bank to another in an instant. That’s what NEFT, or National Electronic Funds Transfer, allows you to do! In simple terms, think of NEFT as a fast lane for your money, making it easy for you to send and receive money electronically.

In this blog, we’ll break down NEFT for you. We’ll explain what NEFT stands for, what it means for you, and how you can use it to pay your credit card bills. Whether you’re a finance pro or just someone who wants to make handling money easier, keep reading, as this blog will tell you everything you need to know about NEFT.

Full Form of NEFT

Bank NEFT full form is National Electronic Funds Transfer. It’s a term you’ll often hear in banking, especially in India. In simple words, NEFT is a system that lets you move money electronically from one bank to another safely and quickly. The word ‘National’ in NEFT means it’s used all over the country, allowing anyone and any business to transfer money between any two bank accounts in India.

What is NEFT Definition?

NEFT, which stands for National Electronic Funds Transfer, acts like a digital link that joins banks all over India, allowing money to be transferred quickly and safely.

Here’s how it works: If you want to send money using NEFT, you first add the details of the person’s bank account you’re sending money to (known as the ‘beneficiary’) in your own bank account. Once the beneficiary is added and approved, you can start the transfer. You type in how much money you want to send, and the money is electronically moved from your account to the beneficiary’s account.

The great thing about NEFT is that it’s a direct transfer system. This means the money goes straight from your account to the recipient’s account without any stops along the way. It’s a straightforward, efficient, and safe way to send money.

So, whether you’re paying for things, sending money to your family, or doing business transactions, NEFT makes it all easy with just a few clicks. It’s an important part of the banking system, helping millions of people handle their money every day.

When Can You Use NEFT (Bank NEFT Timings)?

One of the biggest advantages of NEFT is that it works all the time - 24 hours a day, 7 days a week, 365 days a year. This means you can start a NEFT transfer anytime you want, whether it’s day or night, weekday or weekend, or even a holiday. For example banks like Kotak Bank offers 24 x 7 NEFT transfer services.

But remember, even though you can start a NEFT transfer anytime, the time it takes for the money to get to the other person’s account depends on the RBI’s settlement times. This means there might be a small wait from when you start the transfer to when the money gets to the other account.

Also, if you’re starting a NEFT transfer at a bank branch, the times you can do this might be limited to when the branch is open. So, if you’re planning to do a NEFT transfer at a bank branch, it’s a good idea to check when the branch is open.

How to Make Payments with a Credit Card using NEFT?

Paying your credit card bill using NEFT is easy and straightforward. Here’s a simple guide on how you can do it:

Step 1: Sign in to Your Bank’s Online BankingFirst, sign in to your bank’s online banking portal with your username and password.

Step 2: Add Your Credit Card as a RecipientNext, you need to add your credit card as a recipient. You can usually do this in the ‘Funds Transfer’ or ‘NEFT’ section. You’ll need to put in your 16-digit credit card number instead of the Recipient Account Number and the Name on the Card instead of the Recipient Name.

Step 3: Put in the IFSC CodeYou’ll also need to put in the IFSC code for credit card payments. This is usually a specific code for your credit card provider.

Step 4: Start the NEFT Transfer. Once the credit card has been added as a recipient and approved (which may take some time), you can start the NEFT transfer. Just put in how much you want to pay towards your credit card bill, and confirm the transfer.

And that’s it! Your credit card payment will be made using NEFT. Remember, while you can start a NEFT transfer anytime, the actual time it takes for the money to get to the credit card company might take some time, depending on when the RBI processes the transfer. So, it’s a good idea to make your payment a few days before it’s due to avoid any late fees.

Tips for Smooth NEFT Transactions

1. Double-check the beneficiary details before confirming the transfer.

2. Note down the transaction reference number for future reference.

3. Be aware of any specific NEFT cut-off timings set by your bank.

4. Keep your bank informed about any potential changes in your contact information.

Conclusion


In this blog, we’ve learned a lot about NEFT, which stands for National Electronic Funds Transfer. We now know that NEFT is a system in India that lets you transfer money quickly and safely from one bank account to another. 

Plus, paying your credit card bills with NEFT makes things even more convenient.So, to sum up, NEFT is a powerful tool in banking that has changed how we handle money. It shows how technology can simplify our lives and everyday tasks more efficient. So, the next time you need to move money or pay your credit card bill use NEFT.

 

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.