Internet Banking

Neft Transactions

  1. What is NEFT system?
    National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch enabled for NEFT.

  2. Are all bank branches in the system part of the funds transfer network?
    No. Few other Bank’s branches are not a part of facility. Steps are being taken to widen the coverage both in terms of banks and branches. However, all branches of Nainital Bank are enabled for NEFT.

  3. Whether the system is centre specific or has any geographical restriction?
    No. There is no restriction of centres or of any geographical area inside the country. The system uses the concept of centralised accounting system and the bank’s account that is sending or receiving the funds transfer instructions, gets operated at one centre, viz Mumbai only. The individual branches participating in NEFT could be located anywhere across the country, as detailed in the website of RBI www.rbi.org.in/scripts/neft.aspx

  4. Whom I can contact , in case of non-credit or delay in credit to the beneficiary account?
    Contact your base branch. If the issue is not resolved satisfactorily, please contact Net-Banking Cell, Nainital Bank Ltd., Railway Bazar, Haldwani (UK) email address: [email protected].

  5. How does the NEFT system operate?
    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 authorizes the branch to remit the specified amount to the beneficiary by raising a debit to the remitter’s account.
    Step 2 : The remitting branch prepares a SFMS (Structured Financial Messaging Solution) message and sends it to its service centre for NEFT.
    Step 3 : The service centre forwards the same to National Clearing Cell, RBI, Mumbai to be included for the next available settlement.
    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 banks participating in the system. Thereafter, bank-wise remittance messages are transmitted to banks.
    Step 5 : The receiving banks process the remittance messages received from RBI and effect the credit to the beneficiaries’ accounts.

  6. How is it different from RTGS and NEFT?
    NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and works on Net settlement, unlike RTGS that works on gross settlement.

  7. What about process charges/Service charges?
    Charges will be applicable as per service charges guidelines of the Bank. All incoming (inward) NEFT will not be charged.

  8. What is IFS Code (IFSC)? How it is different from MICR Code?
    Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the bank code, the next character reserve as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch. The MICR code has 9 digits to identify the bank-branch at a centre. IFSC is printed on the cheque leaves issued to the customers

  9. Is it necessary to have a bank account to originate the NEFT transaction?
    Primarily, NEFT is an account to account funds transfer system. Even customers not maintaining an account with NEFT bank can remit funds up to Rs.50,000/- to the credit of another bank account.

  10. Can I receive foreign remittance through NEFT?
    This system can be used only for remitting Indian rupee among the participating banks within the country.

  11. Can I send remittances abroad using the NEFT?
    No .

  12. Would the customer receive an acknowledgment of money credited to the beneficiary?
    Yes, the remitting customer gets back the money if it is not credited to the beneficiary’s account.

  13. What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effected?
    The remitting customer has to furnish the following information to a bank for effecting a RTGS remittance.

    • Amount to be remitted

    • Account to be debited

    • Name of the beneficiary Bank

    • Name of the beneficiary customer

    • Account number of the beneficiary customer

    • Sender to receiver information if any

    • The IFSC code of the receiving branch.


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