How is the operation of NEFT system?
The operation of NEFT system is as follows: Step-1 The remitter fills in the NEFT application form giving the particulars of the beneficiary (bank-branch, beneficiary’s name, account type and account number) and authorises the branch to remit the specified amount to the beneficiary by raising a debit to the remitter’s account. (This can also be done by using net banking services offered by some of the banks.) Step-2 The remitting branch prepares a Structured Financial Messaging Solution (SFMS) message and sends it to its Service Centre for NEFT. Step-3 The Service Centre forwards the same to the local RBI (National Clearing Cell, Mumbai) to be included for the next available settlement. Presently, NEFT is settled in six batches at 09.00, 11.00, 12.00, 13.00, 15.00 and 17.00 hours on weekdays and 09.00, 11.00 and 12.00 hours on Saturdays. Step-4 The RBI at the clearing centre sorts the transactions bank-wise and prepares accounting entries of net debit or credit for passing on to the ba
