The National Electronic Funds Transfer or NEFT payment mode has been in existence for a reasonably long time. Started in 2005, the system allows bank customers to transfer funds between any two NEFT-enabled bank account. By facilitating one-to-one funds transfer, it supports the electronic transfer of funds from a customer’s bank account to any individual having an account with the same or another bank. Unlike real-time gross settlement or RTGS, fund transfers through NEFT system do not occur in real-time; they are settled in half-hourly batches, with no settlements on Sundays or public holidays.
Because of the ease with which inter-bank transactions can be made, NEFT is popularly used by customers for transferring funds. Unlike credit cards, NEFT is comparatively less expensive; MDR on cards is high and large banks often charge a percentage of transaction fee for net banking. In contrast, NEFT transactions are charged a fixed amount which is quite minimal. Also, since there are multiple NEFT settlement timings in a day, merchants can technically receive funds the same day and all the payments received are auto-reconciled.
The NEFT process is pretty straightforward:
Although NEFT is being used by a sizeable portion of the population one of the major drawback faced by merchants is:
Phi Commerce offers a more efficient means of inter-bank payment transfer. It enables payers to transfer money to the payee in a quick and efficient manner. The process is simple and straightforward.
While this is very similar to the regular NEFT transactions, the real benefit starts after this.
Thousands of merchants trust the PayPhi Digital Enablement Suite to deliver a superior payment experience to their customers. We endeavor to transform the Indian digital payment scenario with easy-to-use and powerful digital payment solutions – and the NEFT 2.0 is just a step towards that!