Explain National Electronic Funds Transfer.

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Q. Explain National Electronic Funds Transfer.

Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2024Subjective· 3mImportance★★★★★

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NEFT is a countrywide electronic funds-transfer system run by the RBI that lets a person transfer money from one bank account to any other bank account across India using the IFSC code, safely and conveniently.

In the Tamil Nadu HSC Commerce syllabus, NEFT is studied as one of the modern utility/agency services of commercial banks that has replaced older paper-based transfers.

Meaning: NEFT (National Electronic Funds Transfer) is a nationwide payment system that facilitates one-to-one transfer of funds between bank accounts electronically.
How it works: The remitter provides the beneficiary's name, account number and the branch's IFSC (Indian Financial System Code). The amount is debited from the sender and credited to the receiver's account through the RBI's settlement system. …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set MARCH1 markMCQ
$Q. Minimum how much amount can be transferred through RTGS?$
(a) Any amount
(b) 50,000
(c) 2 lakh
(d) 5 lakh
›Reveal solutionSolution
The minimum amount for an RTGS transfer is ₹2 lakh, so the answer is (c).

Among the general utility services of commercial banks is electronic funds transfer. RTGS — Real Time Gross Settlement — settles transactions individually and instantly (in real time) rather than in batches.

Key point:

RTGS is built for large-value payments, so the RBI fixes a minimum of ₹2,00,000 per transaction. …
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CBSE 2024Set MARCH1 markMCQ
$Q. Minimum how much amount can be transferred through RTGS ?$
(a) Rs. 2 Lakhs
(b) Any amount
(c) Rs. 5 Lakhs
(d) Rs. 50,000
›Reveal solutionSolution

The minimum amount transferable through RTGS is Rs. 2 Lakhs, option (a).

Among the general-utility (electronic fund transfer) services offered by commercial banks, RTGS — Real Time Gross Settlement — is the system used for high-value money transfers that are settled individually and in real time. Because it is intended for large-value transactions, RTGS carries a minimum limit of Rs. 2 lakh per transaction; there is no u …

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CBSE 2020Set MARCH1 markMCQ
$Q. In India RuPay card services were launched in :$
(a) March 2014
(b) March 2013
(c) March 2010
(d) March 2012
›Reveal solutionSolution
The correct answer is (d) March 2012. RuPay, India's indigenous card payment network, was launched by NPCI in March 2012.

As a general utility service, banks issue payment cards to customers. RuPay is significant in the Tamil Nadu HSC Commerce syllabus as India's home-grown card scheme:

RuPay was conceived and launched by the National Payments Corporation of India (NPCI) as an alternative to foreign card networks so that card transactions are processed within India, cutting cost and increasing security. …
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Q.Explain National Electronic Funds Transfer.

Concept understanding — Secondary Functions — General Utility Functions

Q.Explain National Electronic Funds Transfer.

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