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.
Table of Contents
- NEFT-National Electronics Fund Transfer
- NEFT – Transaction Timings
- How to make an NEFT transfer
- NEFT Transfer Charges and Fee
- Benefits of Using NEFT for Fund Transfer
- Who is Eligible to Complete a NEFT Transaction?
- Difference Between NEFT, RTGS, and UPI
- How to Pay Credit Card Bill using NEFT
- What is NEFT Inward
- FAQ's of NEFT
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
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
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.
- 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:
|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|
|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:
|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|
|Time for Transfer to be Completed||Minimum of 2 hours||Immediate||Immediate|
|Transaction Charges||Depends on the bank||Depends on the bank||No charges|
Check IFSC Code for Top Banks:
|State Bank of India IFSC Code||HDFC Bank IFSC Code||Indian Bank IFSC Code|
|Axis bank IFSC Code||Canara bank IFSC Code||ICICI Bank IFSC Code|
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|
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
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.
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.
Do all banks have NEFT facility?
Ans: No. Not all banks are part of the NEFT network.
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.
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|
|NEFT Timing||Digital Wallet||Mobile Wallet|
|SBI UPI||Bank IFSC Code|
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