NEFT stands for National Electronic Funds Transfer. It is an electronic funds transfer system in India that enables individuals, companies, and financial institutions to electronically transfer funds from one bank account to another. NEFT transactions are processed in batches, and the settlement of funds occurs on a deferred net settlement (DNS) basis. This means that transactions are settled in batches at specific intervals rather than in real-time. NEFT is widely used for various purposes, including online fund transfers, bill payments, and other financial transactions.