NEFT (National Electronic Funds Transfer)

NEFT (National Electronic Funds Transfer) is a system that allows the electronic transfer of funds between banks in India.

• Function: NEFT is widely used for various types of transactions, including payments, transfers, and settlements, with no upper limit on transaction amounts.
• In IPO Refunds: If an IPO applicant is not allotted shares, the excess application amount is refunded through NEFT to the investor’s bank account. It ensures secure, efficient, and timely processing of IPO refunds.