National Electronics Fund Transfer (NEFT) is a country-wide electronic fund transfer system for sending money from one bank account to another in a safe and hassle-free manner. All NEFT settlements are made in a batch-wise format. Money can be sent using this system to all NEFT-enabled banks in India on an individual basis. To initiate a NEFT transfer, Bank IFSC Code is a must, along with other details such as bank account number, bank branch and account holder name, among other details.
|NEFT Benefits||NEFT Timings||NEFT Transaction Limits|
Safe and secure
Reliable and error free
Organised and batch-wide settlement
From 9.00 a.m. to 7.00 p.m. on all weekdays
From 9.00 a.m. to 1.pm on Saturdays
No minimum or maximum transaction limit
However, per transaction limit is Rs.50,000
Step By Step NEFT Transfer Procedure
The procedure for National Electronic Funds Transfer (NEFT) is mentioned below:
Online Procedure For NEFT:
To transfer funds via NEFT online follow these procedure
Step 1: First login to your net banking account. If you do not have a net banking account then register for it on the website of your bank.
Step 2: Add the beneficiary as a payee. To do so, you have to enter the following details about the beneficiary in the ‘Add New Payee’ section:
- Account Number.
- IFSC Code.
- Account Type.
Step 3: Once the payee is added, choose NEFT as mode of Fund Transfer.
Step 4: Select the account you wish to transfer money from, select the payee, enter the amount that you wish to transfer and add remarks (optional).
Step 5: Click on submit.
Offline Procedure For NEFT:
Step 1: Go to your bank.
Step 2: Fill the NEFT/RTGS form. Provide the following details about the beneficiary in the form:
- Account Number.
- Bank Name.
- IFSC Code.
- Account Type.
- Account Number.
- Amount to be transferred.
Step 3: Submit the form to authorize your bank to transfer the money.
How to Use NEFT to Transfer Money?
This is a generic process of a NEFT transfer, however minute details may vary, based on the banks sending and receiving the fund transfer:
- You need to first fills up an online application form on the bank website, where you add the details of the person you are sending the money to a.k.a. Beneficiary. This will include details such as name, the name of his or her bank, their branch name, IFSC code of their bank, the type of account and finally the account number along with the amount you wish to send. The remitter authorizes his/her bank branch to debit his account and remit the specified amount to the beneficiary. This facility is also available through online banking and some banks offer the NEFT facility even through the ATMs.
- Your bank will then issue a message and will then send it to their NEFT Service Centre.
- NEFT forwards this message from your bank to the NEFT Clearing Centre which is operated by National Clearing Cell which is a part of the Reserve Bank of India in Mumbai and hence include the transaction in the next available branch of transaction.
- The NEFT Clearing Centre then sorts all the funds transfer transactions based on banks and accounts the entries for fund transfer from your bank which will be debited and gives the funds to the recipient's banks. The NEFT Service Center then receives the messages and entries along with the messages from the NEFT Clearing Centre and passes on the funds to the receiver's account.
What are the Fee & charges for NEFT Transfer
The recipient bank does not charge anything to the recipient account for a NEFT transaction.
For the sender, the sending bank charges the following based on the amount being transferred as follows:
|Transaction Amount||NEFT Charges|
|Amounts upto Rs 10,000||Rs 2.50 + Applicable GST|
|Amounts above Rs 10,000 and upto Rs 1 lakh||Rs 5 + Applicable GST|
|Amounts above Rs 1 lakh and upto Rs 2 lakh||Rs 15 + Applicable GST|
|Amounts above Rs 2 lakh and upto Rs 5 lakh||Rs 25 + Applicable GST|
|Amounts above Rs 5 lakh and upto Rs 10 lakh||Rs 25 + Applicable GST|
Timings for NEFT Transactions:
At the moment NEFT functions in hourly batches hence between the service centers operational hours (8:00 AM to 7:00 PM on any given week day along with 8 am to 1 pm on Saturdays there are 8 and 6 batches that operate, respectively.
Hence money can be transferred from Monday to Saturdays (Except the 2nd and 4th Saturday of the month) from 8:00 AM to 6:30 PM. Also, NEFT transactions do not get credited on public and bank holidays.
But, the sender can queue in the transaction for the recipient and wait, when NEFT picks it up their next working hour and day.
Public Holidays when NEFT Transactions are not completed include Republic Day, Good Friday, Annual Closing of Banks, RBI's Annual Closing of Accounts, Ramzan Id (Id-ul-Fitr)/Ratha Yatra, Independence Day, Dasara / Vijaya Dashami and Muharram.
How NEFT is Different from RTGS?
This was said to be the quickest way to transfer money online until UPI came into the picture. The amount for transfer must be more than Rs. 2 lakhs. This is one of the most safe and secure channels for money transfer in the country. Though it is slightly different from NEFT, this form of transaction also requires knowing the the IFSC code of the sender as well as the recipient. The requests are processed instantly post receipt but only in particular banking hours as mentioned by Samarth Sahakari Bank. There are no maximum amount limits for RTGS service .
How to Pay Credit Card Bill using NEFT
- Step 1: Log in to your bank’s internet banking account
- Step 2: The next step is to add the credit card as a beneficiary. For this you should know the IFSC code of your credit card
- Step 3: Proceed to enter the credit card number as the account number and other relevant details
- Step 4: Once the credit card is registered as a payee, go to the ‘NEFT Funds Transfer’ option and make a fund transfer towards your credit card by entering the bill amount
How to add credit card as a payee/beneficiary for NEFT credit card bill payment
|1||Payee name||The name of the payee/beneficiary will be the same as the name printed on the credit card|
|2||Payee account number||This will be the credit card number printed below the name|
|3||Bank name||The name of your bank|
|4||IFSC code||You can get the IFSC code for your credit card by contacting your credit-card issuing bank|
FAQs of NEFT
- What is NEFT?
Expanded as National Electronic Funds Transfer, NEFT is an electronic fund transfer process, through which money can be sent from one bank account to another.
- Is IFSC code a must for all NEFT transactions?
Yes. It is mandatory to provide the IFSC code along with other details to initiate fund transfers.
- Do all banks have NEFT facility?
No. Not all banks are part of the NEFT network.
- 4. How can a customer know if their bank or payee bank is part of the NEFT work?
The information about all NEFT-enabled banks is available on the Reserve Bank of India (RBI) website.
- 5. How long does it take for NEFT transactions to be settled?
All fund transfer transactions will be processed in a batch-wise format and the money will be credited within 2 working days.
Other IFSC Related Article
|NEFT Timing||Digital Wallet||Mobile Wallet|
|SBI UPI||Bank IFSC Code|