Which of the following statement is not true regarding National Electronic Funds Transfer (NEFT)?
Which of the following statement is not true regarding National Electronic Funds Transfer (NEFT)?
1). As per the RBI, NEFT is a nation-wide payment system facilitating one-to-one funds transfer and a delay from the bank’s side on such transaction; banks are required to pay a prescribed penalty.
2). Under this, individuals, firms and corporates having an account with any other bank branch can electronically transfer funds.
3). There is a limit – on the maximum amount of funds that could be transferred using NEFT.
4). For being part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled.
1 answers
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer.
Key facts about NEFT scheme:
- Under this Scheme, individuals, firms and corporate 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.
- The NEFT system also facilitates one-way cross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme. The beneficiary would receive funds in Nepalese Rupees.
- In case of delay in NEFT, the banks have to follow the guidelines issued by RBI in 2010 that banks are required to pay a penal interest at the current RBI’s repo rate plus 2% for the delayed period, or until the date of refund, as per the case. At present, the repo rate is 6.50%$, so you should get 8.50% as penal interest on any delay.
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