NEFT meaning in General ?

Answer:

What is Indian settlement systems mean?

Payment and settlement systems in India are used for financial transactions. They are covered by the Payment and Settlement Systems Act, 2007 (PSS Act), legislated in December 2007 and regulated by the Reserve Bank of India and the Board for Regulation and Supervision of Payment and Settlement Systems.

India has multiple payments and settlement systems, both gross and net settlement systems. For gross settlement India has a real-time gross settlement (RTGS) system called by the same name and net settlement systems include Electronic Clearing Services (ECS Credit), Electronic Clearing Services (ECS Debit), credit cards, debit cards, the National Electronic Fund Transfer (NEFT) system, Immediate Payment Service and Unified Payments Interface (UPI)

The Reserve Bank of India is trying to encourage alternative methods of payments which will bring security and efficiency to the payment systems and make the whole process easier for banks.

According to a survey by Celent, the ratio of e-payments to paper-based transactions has considerably increased between 2004 and 2008. This has happened as a result of advances in technology and increasing consumer awareness of the ease and efficiency of internet and mobile transactions.

In the case of India, the RBI has played a pivotal role in facilitating e-payments by making it compulsory for banks to route high-value transactions through real-time gross settlement (RTGS) and also by introducing NEFT (National Electronic Funds Transfer) and NECS (National Electronic Clearing Services) which has encouraged individuals and businesses to switch. India is one of the fastest-growing countries for payment cards in the Asia-Pacific region. Behavioral patterns of Indian customers are also likely to be influenced by their internet accessibility and usage, which currently is about 32 million PC users, 68% of whom have access to the net. However these statistical indications are far from the reality where customers still prefer to pay "in line" rather than online, with 63% payments still being made in cash. E-payments have to be continuously promoted showing consumers the various routes through which they can make these payments like ATM's, the internet, mobile phones and drop boxes.

Due to the efforts of the RBI and the (BPSS) now over 75% of all transaction volume are in the electronic mode, including both large-value and retail payments. Out of this 75%, 98% come from the RTGS (large-value payments) whereas a meager 2% come from retail payments. This means consumers have not yet accepted this as a regular means of paying their bills and still prefer conventional methods. Retail payments if made via electronic modes are done by ECS (debit and credit), EFT and card payments.

reference

Full Form	Category
National Electronic Fund Transfer	Accounts and Finance
National Electronic Funds Transfer	Banking
NIBSS Electronic Fund Transfer	Business
New England Fly Tyers	Community
North Eastern Frontier Tract	Country Specific
Indian settlement systems	General