NEFT - National Electronics Fund Transfer

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

Economical

Reliable and error free

Organised and batch-wide settlement

Paperless

24x7

No minimum or maximum transaction limit

However, per transaction limit is Rs.50,000

NEFT - National Electronics Fund Transfer

The National Electronic Fund Transfer (NEFT) is payment platform which is used nation-wide by many banks. This allows the easy and hassle-free transfer of money from one bank account to another bank account. With the world slowly shifting to online banking, the concept NEFT has become very popular in the country and is an easy way of transferring funds. It eliminates the need to visit the bank to transfer funds, as you can transfer funds from while being at home.

NEFT – Transaction Timings

Earlier, the NEFT transaction timings for most banks was between 8 a.m. And 6 p.m. from Monday to Friday and 8 a.m. to 12 p.m. on Saturdays. However, with effect from 16 December 2019, you can transfer money via NEFT 24x7. Money can be transferred via NEFT on holidays and weekends as well.

How to make an NEFT transfer

NEFT Procedure
NEFT Procedure

The procedure for National Electronic Funds Transfer (NEFT) is mentioned below:

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.
  • Name.
  • 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, the payee, enter the amount that you wish to transfer, and add remarks (optional).

Step 5: Click on submit.

NEFT Transfer Charges and Fee

In case you are receiving money, no charges are levied. However, if you are sending money, the bank will levy charges. Depending on the bank, the charges that are levied will vary. Given below are charges levied by ICICI Bank and HDFC Bank:

ICICI Bank

Transaction Amount NEFT Charges
Amounts up to Rs 10,000 Rs.2.25 + Applicable GST
Amounts above Rs 10,000 and up to Rs 1 lakh Rs.4.75 + Applicable GST
Amounts above Rs 1 lakh and up to Rs 2 lakh Rs.14.75 + Applicable GST
Amounts above Rs 2 lakh and up to Rs 5 lakh Rs.24.75 + Applicable GST
Amounts above Rs 5 lakh and up to Rs 10 lakh Rs.24.75 + Applicable GST

HDFC Bank

Transaction Amount NEFT Charges
Amounts up to Rs 1,00,000 Rs.2.00 + Applicable GST
Amounts above Rs 1,00,000 Rs.10.00 + Applicable GST

Benefits of Using NEFT for Fund Transfer

NEFT offers a lot of benefits. Let's look into a few of these:

  • The system allows the one-way cross-border transfer of funds from India to Nepal. This is under the Indo-Nepal Remittance Facility Scheme.
  • With NEFT, you can easily transfer funds from one bank account of any branch to another account.
  • It avoids the need for a physical instrument to transfer funds.
  • There is no need for any physical presence of parties.
  • NEFT is easy, simple and efficient.
  • You do not have to visit to the bank as long as you have a valid bank account
  • You can initiate internet banking from any location.
  • The confirmation of a transaction will be received via email and SMS notifications
  • The real-time transactions of NEFT gives assurance to both parties.

Who is Eligible to Complete a NEFT Transaction?

The list of bank branches that come under the NEFT scheme is provided by the Reserve Bank of India. Corporates, firms, and individuals who have a bank account under the NEFT scheme will be eligible to make NEFT transactions. Individuals who do not have a bank account can also make a NEFT transaction by visiting the bank branch and providing the relevant details.

Difference Between NEFT, RTGS, and UPI

The main differences between NEFT, RTGS, and UPI are mentioned in the table below:

Category NEFT RTGS UPI
Minimum Amount that can be Transferred Rs.1 Rs.2 lakh Rs.1
Maximum Amount that can be Transferred No maximum limit No maximum limit Rs.1 lakh
Timings 24x7 Depends on the bank 24x7
Details that must be Provided IFSC Code, Account Number, and Bank Name IFSC Code, Account Number, and Bank Name MPIN and VPA
Payment Options Offline/Online Offline/Online Online
Time for Transfer to be Completed Minimum of 2 hours Immediate Immediate
Transaction Charges Depends on the bank Depends on the bank No charges
Beneficiary Addition Yes Yes No

Check IFSC Code for Top Banks:

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

Step Detail Process
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

What is NEFT Inward

  • RBI's website, describes the NEFT process as a payment system which allows one-to-one funds transfer. Under the facility of NEFT, you can transfer funds electronically from one bank branch to another individual. You can also make an NEFT payment to a firm or corporate, which has an account with any bank branch in India.
  • If you do not have a bank account, you can always deposit cash using the NEFT facility. These cash remittances will be restricted to a maximum of Rs.50,000 for each transaction.
  • The settlement of fund transfer requests in an NEFT system can be done every half an hour. Note that there are twenty three half-hourly settlement batches and these run from 8:00 a.m. to 7:00 p.m on every working day of the week (except for the 2nd and 4th Saturdays of every month).
  • The receiver will get the amount for the NEFT transactions within two business hours.

FAQ's of NEFT

  1. What is NEFT?

    Ans: 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.

  2. Is IFSC code a must for all NEFT transactions?

    Ans: Yes. It is mandatory to provide the IFSC code along with other details to initiate fund transfers.

  3. Do all banks have NEFT facility?

    Ans: 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?

    Ans: 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?

    Ans: 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

SBI YONO APP RTGS UPI
IMPS BHIM AEPS
NEFT Timing Digital Wallet Mobile Wallet
SBI UPI Bank IFSC Code

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News About National Electronic Funds Transfer (NEFT)

  • Transfer money through NEFT 24x7 at free cost

    You can now transfer money online through National Electronic Funds Transfer (NEFT) route 24x7. This can be done at any time and on any day. The Reserve Bank of India (RBI) had said that all bank customers can transfer funds via NEFT around the clock. The Central Bank had directed that from January 2020 banks nit charge savings bank account holders for their online transactions in the NEFT system.

    21 August 2020

  • NEFT Services Likely to be Extended on March 31

    The popular electronic money transfer method - the National Electronic Fund Transfer System (NEFT) - can be used to send money till midnight on March 31, 2018. The payment system is available through all NEFT-enabled banks in the country.

    While NEFT services are usually not available beyond the working hours of the bank, the money transfer system will be made available because Saturday (March 31, 2018) is the last working day of the financial year ending 2017 - 2018. Since all government payments which also includes tax related payments, will be accepted by banks, the Reserve Bank of India (RBI), has asked all banks to remain open for longer. The RBI has issued instructions asking all banks that accept government payments to be open till 8.00 p.m. on Saturday.

    For people who are yet to file to tax returns, it can still be done before March 31. However, it is important to note that there are two bank holidays that come this month, which is on March 29 and March 30 for Mahaveer Jayanti and Good Friday respectively.

    Meanwhile, all Ayakar Seva Kendras (ASKs) and Income Tax offices will be open on the bank holidays that fall on March 29 and 30 this year in order to help people file taxes.

    29 March 2018

  • Many Banks Slash NEFT, RTGS Charges

    In a recent move, many banks in the country have cut down net banking charges applicable for NEFT and RTGS.

    This movie has been implemented in an effort to encourage more and more people to adopt digital payment methods. At present, all transactions through UPI can be made free of cost, and there is no need to provide account details or IFSC code to send or receive money through UPI. If customers use net banking, these charges have been waived in most cases.

    30 January 2018

  • No Transaction Fee for NEFT, RTGS in HDFC Bank

    All online fund transfers initiated through NEFT and RTGS can be made free of cost in HDFC Bank. This move has been implemented from November 1, 2017.

    THe main objective behind this decision is to encourage more and more digital banking transactions in the country.

    Before this move was implemented, the charges levied for RTGS transactions were Rs.25 per fund transfer between Rs. 2 to Rs.5 lakh. For NEFT, the charges were Rs. 15 per transfer from Rs. 1 lakh to Rs.2 lakh and Rs.2.5 for fund transfers that range from Rs.10,000 to Rs.1 lakh.

    10 November 2017

  • Digitization: Currency Printing may Reduce

    The number of currency notes printed may decline in the next two years due to digitization, according to Union Minister Nitin Gadkari.

    The minister said that there has been a rise in the number of cashless transactions in 2017. To put it in numbers, there has been a rise by 58%. In 2016, the total number of NEFT transactions were 120 crore, while in 2017 these numbers inclined to 160 crore. The total number of debit card transactions that were carried out in 2017 amounted to 240 crore. There has also been a rise in the number of credit card and NEFT transactions.

    9 November 2017

  • Debit Card Usage Goes Down; Digital Transactions Up

    There has been a rise in the number of digital payments made by bank customers after demonetization and a reduction in the use of debit cards, according to a well reputed investment banking firm.

    The National Electronic Fund Transfer (NEFT) system has seen exponential growth and has risen by about 30%. NEFT transaction size has improved by 10%. The overall growth in NEFT transactions is 40%. Apart from this there has also been an increase in RuPay usage. Simultaneously, there has also been a growth in the number of IMPS transactions. Both in terms of volume and value, the number of debit card transactions have gone down. UPI and BHIM app has also seen a growth.

    6 October 2017

  • Surge in Digital Transactions Post Demonetization

    There has been a surge in the number of digital transactions in the country and a fall in debit card usage, according to a well known investment banking firm. This trend has been recorded post demonetization.

    The number of National Electronic Funds Transfer (NEFT) and Immediate Payment Service (IMPS) transactions have gone up since demonetization. To initiate fund transfers through NEFT and IMPS one has to provide IFSC code, account number and other payee details. Apart from this, RuPay has been seeing a very fast adoption rate.

    NEFT transactions have seen a growth of 30% and there has also been an increase in per-transaction size by about 10%. The overall growth in the number of NEFT payments is around 40%.

    IMPS transactions have seen a growth rate of 100% plus. IMPS provides the customer the convenience of transacting on a 24/7 basis and 365 days in a year.

    UPI and BHIM app transactions have also seen a steady rise.

    28 September 2017

  • 88% loan disbursal by MFIs through NEFT/IMPS

    It has come to light that more than 60% of Microfinance Institutions (MFI) in India are disbursing loans using various cashless methods. This has been adopted to push up operational efficiency in the system.

    In fact, during fiscal 2017, out the 60% of MFIs that disbursed loans through cashless methods, over 88% of MFIs in India disbursed loans through modes such as National Electronic Fund Transfer and Immediate Payment Service (IMPS).

    However, in the 4th quarter of 2017, only as much as 39% of loans were disbursed through cashless means. This data was published by the Microfinance Institutions Network (MFIN).

    According to the report, going cashless is in an effort to mitigate risk, hike operational efficiency, improve cash management systems, promote safety and productivity.

    Infact, demonetization and the various government measures have led to the rise in digital transactions in the country. This has also helped MFIs adopt cashless modes of transactions. People from rural India are also adopting these practises in a steady manner, according to experts.

    Some of the popular cashless transaction methods used include mobile wallets, prepaid cards, and Aadhaar-enabled payments, among other modes. The adoption rate has been increasing at a fast pace, according to reports.

    1 September 2017

  • RBI reduces the clearance time for NEFT

    In a bid to make the digital transactions more efficient, the Reserve Bank of India has taken the initiative to cut down the time involved in National Electronic Funds Transfer (NEFT) transactions. Currently, NEFT transactions are carried out on an hourly basis, RBI plans to reduce it to half-hourly basis. This initiative will make electronic payments more efficient while offering convenience to the customer. By making NEFT faster, it is expected to see a rise in the number of people using NEFT over other modes of transactions. With NEFT settlement cycle reducing from hourly batches to half-hourly batches, the government is a step closer to making India a cashless economy. The government has also offered various other platforms for carrying out payments and transactions since demonetization of scrapped Rs.1,000 and Rs.500 notes. The digital wallets, UPI apps, Aadhaar-Enabled Payment System, and other initiatives are already in progress to offer superior electronic payment services.

    7 April 2017

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