Saturday, February 7, 2015

Inter Bank Fund Transfer (IBFT) | National Electronic Fund Transfer (NEFT)

Online Banking important fact

Online Banking is getting very popular in India for recent days.Some Banks like Standard chartered has almost made everything to do online without going to Bank. And other banks started to follow this technique . If you know about online Banking , you can save lot of time.

This article precisely tell you the most important things of online banking that we need to know about online transfers.

Both of the terms IBFT and NEFT are related to online banking

IBFT (Inter Bank Fund Transfer) :
As the name says, it is the method of transfer fund (money) from one accounts between different banks.
For example , if we transfer 1000 INR from an account in Standard Chartered Bank to an account in Axis bank, then it is called as Inter Bank Fund Transfer.

NEFT (National Electronic Fund Transfer) :
National Electronic Fund Transfer (NEFT) is the common , standard method of online transfer of money between accounts in different banks as well as same banks.
All Banks operating in India which provide online banking option are using this NEFT method for online internet money transfer.

Important Facts to know about NEFT:

Daily Limit:
Each Bank will set a maximum daily limit that you can transfer through online. For example, Indian Bank, we can transfer 10 Lakh INR per day through online banking.If you try to transfer beyond this limit, the request will be cancelled by the bank operator

Time Limit
  • If you transfer money on weekdays (Monday to Friday) before 6.00 PM, then the request will be submitted to the other bank within the same day. Else the request will be processed in next business day.
  • If you transfer money on Saturday before 12 PM (afternoon) , then the NEFT request will be submitted to the other bank on the same day. Else you have to wait till Monday.
  • During Sunday, we can initiate to transfer money through online, but the bank will process it during the next day.
  • And during government holidays, the NEFT requests will not be processed.

 To cancel the NEFT request
Once you submit the request , you cannot cancel it. So, you have to be careful in the following information before submitting the request.
  • Account number of the receiver
  • IFSC code
  • Amount to be transferred
Benefits of Online Banking
  • No need to waste time in long Queue in Bank for transferring money
  • You can Pay telephone bill, Electric Bill, Mobile recharge in your mobile itself if you have internet . Smart phones with touch screen makes the process more easy.
  • If your bank has specific app for online banking , then you can enjoy more options like Checking balance, viewing e-statements through online itself. No need to go to Bank for entering transactions in pass book.