NEFT (National Electronic Funds Transfer)

NEFT, or National Electronic Funds Transfer, is an electronic system to transfer funds from one bank account to another. It is controlled by the Reserve Bank of India (RBI) and works as per the RBI guidelines.

Features of NEFT

National Electronic Fund Transfer (NEFT) is the most common and convenient way to transfer funds. It has several features and benefits. Some of the most common features of NEFT are mentioned below:

  • It is a mode of payment to send money electronically from one bank account to another.
  • You can use NEFT to transfer money between banks on all working days and even on Saturdays (except for bank holidays). 
  • Online NEFT transfers can be done 24/7 on all days throughout the year.
  • There is no minimum or maximum amount limit for NEFT transactions. However, few banks can have a limit on maximum transactions per day based on NEFT transfer time.
  • NEFT transactions through the bank branch occur in batches. It operates in hourly batches during bank working hours.
  • Both the sender and receiver need to have bank accounts to use NEFT.
  • One can conduct online NEFT transactions for free as the banks do not impose any charges for online NEFT transfers.
  • If a transaction fails or is not processed, the money is usually returned to your account.

Online and Offline Methods for NEFT Fund Transfer

NEFT, or National Electronic Fund Transfer, is a secure and convenient way to transfer funds electronically from one account to another. NEFT fund transfers can be done either through the bank branch or even through online banking. Given below are the online and offline methods for transferring funds through NEFT.

Online Method for NEFT Fund Transfer

Individuals with an active online banking account can make the NEFT transfer online through the bank’s net banking portal. Here are the steps that should be followed:

  • Step 1: Go to the official website of your bank.
  • Step 2: Log in to your bank’s net banking account by entering your user ID and password.
  • Step 3: After logging in, click on the ‘Fund transfer’ option.
  • Step 4: Select ‘NEFT’ from the drop-down menu.
  • Step 5: If you have not added any beneficiary, click on the ‘Add beneficiary’ option displayed on the page.
  • Step 6: Enter the beneficiary’s details, i.e., beneficiary’s name, account number, branch name, IFSC code, etc.
  • Step 7: Click on ‘Confirm’.
  • Step 8: Enter the OTP received on your registered mobile number for authentication.
  • Step 9: Now, enter the amount that needs to be transferred. Click on ‘Confirm’.
  • Step 10: After confirmation, the amount will be transferred from your bank account to the beneficiary’s account.

Offline Method for NEFT Fund Transfer

For the offline NEFT process, one must visit their bank branch and fill out the NEFT form. Here are the detailed instructions that must be followed:

  • Step 1: Collect the NEFT form from the bank and fill out all the details accurately.
  • Step 2: One must enter the necessary information, which includes the account numbers, branch names, IFSC codes, and account types of both the sender and the beneficiary. This is important to initiate the transaction. 
  • Step 3: Mention the transaction amount in the form.
  • Step 4: The sender must present his or her PAN card if the transaction amount is more than Rs. 50,000.
  • Step 5: The bank will send a confirmation message to your registered phone number if the NEFT transfer is successful.

Details Required for NEFT Fund Transfer

Before making a NEFT transaction, one must keep the following details in hand to initiate the fund transfer:

  • Name of the beneficiary.
  • Beneficiary’s account details, including account number, branch name and IFSC code.
  • Type of bank account.

NEFT Limit

There are no NEFT limits on fund transfers, as per the Reserve Bank of India. However, these might vary depending on the banks. Certain banks might impose a limit to NEFT fund transfers based on the NEFT timings for security purposes.

NEFT Timings

Currently, for online NEFT transfers, the services are available 24/7 throughout the years. One can easily transfer funds anytime through NEFT using any online banking platform, such as net banking or mobile banking.

However, for offline NEFT fund transfers, the NEFT timings are different and are operational as per the working hours of the particular bank. It is advisable to contact the bank branch regarding NEFT timings and do the transfer during working hours of the bank branch.

NEFT Charges

As per RBI guidelines, there are no charges imposed on NEFT transactions if made through online platforms such as net banking or mobile banking. However, one must pay certain NEFT charges if the transaction is made through the bank branch. 

Given below are the NEFT charges that are imposed during the fund transfer:

NEFT Transfer Amount

NEFT Charges

Up to Rs. 10,000

Rs. 2.50 + GST

Above Rs. 10,000 and up to Rs. 1 Lakh

Rs. 5 + GST

Above Rs. 1 Lakh and up to Rs. 2 Lakh

Rs. 15 + GST

Above Rs. 2 Lakh

Rs. 25 + GST

The above-given charges might vary depending on the bank branch and can be subject to change over time. It is advisable to contact the respective bank branch to get the latest NEFT charges.

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