India NEFT
A rupee transfer from one customer to another over the Reserve Bank of India's NEFT system, which settles net in half-hourly batches rather than one payment at a time.
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Riya instructs Bank Alfa to pay Arjun
Riya (remitter) → Bank Alfa (remitting bank)
Riya tells her bank to send INR 15,000.00 to Arjun by NEFT, giving his account number and the beneficiary bank's IFSC so the payment can be routed nationwide.
Step 1 of 7: Riya instructs Bank Alfa to pay Arjun
- 02PostingBank Alfa debits Riya and queues the transfer for the next batchBank Alfa (remitting bank)
- 04Clearing obligationNEFT nets each bank's position for the batchNEFT (Reserve Bank of India)
- 05SettlementNet positions settle in central bank moneyBank Alfa (remitting bank) → Nordbank (beneficiary bank)
- 07PostingNordbank credits ArjunNordbank (beneficiary bank)
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- 02PostingBank Alfa debits Riya and queues the transfer for the next batchBank Alfa (remitting bank)
Bank Alfa books the debit on Riya's account and holds the transfer for the next half-hourly cycle. The money has left Riya, but nothing has moved between banks yet.
- DR Riya's savings account at Bank Alfa — INR 15,000.00
- 04Clearing obligationNEFT nets each bank's position for the batchNEFT (Reserve Bank of India)
The NEFT system pools every transfer in this half-hourly batch and works out one net figure per bank — who owes whom overall — instead of moving each payment on its own.
These net positions are obligations calculated for the batch. The banks do not have their money yet — that only happens at settlement.
- 05SettlementNet positions settle in central bank moneyBank Alfa (remitting bank) → Nordbank (beneficiary bank)
The batch's net positions settle across the banks' accounts at the Reserve Bank of India. Only now has money actually moved from Bank Alfa toward Nordbank, in central bank money.
- DR Bank Alfa settlement account at RBI — INR 15,000.00
- CR Nordbank settlement account at RBI — INR 15,000.00
- 07PostingNordbank credits ArjunNordbank (beneficiary bank)
Nordbank books the credit to Arjun's account. The transfer is complete end to end: Riya debited, banks settled net at the RBI, and Arjun credited.
- CR Arjun's savings account at Nordbank — INR 15,000.00
What this simplifies: One transfer, one half-hourly settlement cycle. Real NEFT nets thousands of payments across many banks in each of its 48 daily cycles, and some banks reach NEFT through a sponsor rather than directly.
Sources for this flow2
- Official requirement
RTGS and NEFT ↗ — Reserve Bank of India
RTGS settles gross one payment at a time; NEFT settles net in half-hourly batches. Both are operated by the Reserve Bank of India.
- Simplified educational illustration
Payments Signal editorial teaching models — Payments Signal
What this simplifies: A single transfer shown through one half-hourly cycle; the real batch nets many banks' payments at once, and indirect participation through a sponsor bank is omitted.
Used wherever diagrams, scenarios, figures, or example values are didactic constructions rather than sourced facts; every such use carries a simplifications disclosure. All people, companies, banks, and list entries in examples are fictional.