The National Electronic Fund Transfer (NEFT) is one the most popular means of fund transfer. You can transfer funds through the NEFT anywhere in India. However, NEFT cannot be used to transfer funds abroad.
It is important to note that funds can be transferred via NEFT from the NRE and NRO account of an individual.
Today, NEFT can be used for a host of transactions including payment of home loan EMIs, payment of third party payments transactions etc.
How can the remitter track the transaction?
According to the Reserve Bank of India, it is possible for the originating bank branch to keep track and be aware of the status of the NEFT transaction at all times.
These days, many banks also send an SMS alert, as soon as the recipient receives the amount. It is best to check with your bank and subscribe to the SMS facilities, which are a very nominal amount.
What happens if the amount is not credited to the beneficiary?
In case it is not possible by the bank to credit the account of the beneficiary for whatever reason, the destination banks are required to return the transaction (to the originating branch) within two hours of completion of the batch in which the transaction was processed.