NEFT Charges: Check Out NEFT Transfer Charges for All Banks

National Electronic Funds Transfer (NEFT) is the most common and widely used method of transferring lump sum amounts between different bank accounts in India. Regulated by the Reserve Bank of India,  NEFT allows individual customers to experience a seamless transaction process, making it the preferred choice for businesses and individuals. 

Different banks might charge fees based on the transaction amount and whether it is initiated offline or online. Properly understanding these charges is crucial for effectively managing finances and avoiding penalty charges. 

Continue reading this blog to gain detailed insights about NEFT transfer charges, features, and benefits. 

NEFT Transfer Charges and Fees

No charges are applicable for individuals on the receiving end of an NEFT transfer. Moreover, no NEFT charges are applicable on transactions carried out online through internet banking or mobile banking channels. If you are, however, responsible for initiating a fund transfer, paying specific fees is a must to facilitate the transfer. 

Here are the NEFT transfer fees and charges applicable:

• Maximum of ₹25 (+GST) applicable for maximum transfer value above ₹2 Lakh
• Maximum of ₹15 (+GST) for transfers more than ₹1 Lakh and less than ₹2 Lakh 
• Maximum of ₹5 (+GST) applicable for transfers more than ₹10,000 and below ₹1 Lakh
• Maximum of ₹2.50 (+GST) applicable for transfers made up to ₹10,000

NEFT charges vary from one bank to another and should be verified with the bank before transferring. For instance, some banks may charge ₹2.5 for transfers up to ₹10,000, while others may charge ₹2.5 with taxes. Considering the account type, some banks also end up waiving the fees for a certain number of NEFT transfers in a month.

NEFT Charges for Different Banks

NEFT charges vary from one bank to another in India. The transaction amount and policies of respective banks influence them. However, many banks offer free NEFT transactions for online banking. The Reserve Bank of India has made it mandatory to charge reasonable fees for the widespread use of digital payments. Correctly understanding the NEFT charges is essential for cost-effective fund transfers. 

The table below highlights the NEFT charges applicable for different banks in India:

How to Do NEFT Transactions?

Carrying out a NEFT transaction is a simple and hassle-free process. For successfully conducting an NEFT transaction via a bank branch, here is a detailed step-by-step guide you should follow:

• Provide all detailed information about the beneficiary and fill out an NEFT fund transfer form. The details you need to enter include the beneficiary name, bank name and branch name, its IFSC code, type of account, and your account number.
• Enter the desired amount to transfer to the beneficiary’s bank account.
• You will receive a PIN/OTP for identity verification. As your bank has mentioned, you can also use other means of verification.

Once you complete these steps, the bank will proceed with payment authorisation. You can also transfer funds via your bank’s internet or mobile banking facilities. 

Transfer Funds NEFT Online

NEFT is a secure and convenient method of transferring lump sum funds online between banks in India. Businesses and individuals can easily transfer money with NEFT, which is usually processed in batches. Opting for NEFT will be ideal if you are looking for small—to medium-sized transfers. 

Here is a detailed step-by-step guide to follow for transferring funds through NEFT online:

• Log in to your net banking account using your correct login credentials.
• Navigate to the main page and click the ‘Fund Transfer’ option.
• Choose the ‘NEFT’ option from the drop-down menu section.
• After choosing the desired option, add the beneficiary to your account if not done already.
• To add a new beneficiary, choose the ‘Add Beneficiary’ option on the respective page.
• Provide details of the beneficiary, including the name, IFSC code, beneficiary account number, and so on.
• Choose the option ‘Confirm’ or ‘Add’.
• You will receive an OTP on your registered contact number for further authentication.
• Once verified, the bank processes the transaction, and the recipient’s name is added to the bank account within 24 hours.
• After adding the recipient’s name, select the beneficiary’s name from your desired list of beneficiaries to send money.
• Provide the amount you wish to transfer and then confirm your transaction.
• Once confirmed, the amount will be transferred from your bank account to the recipient’s account.

Transfer Funds NEFT Offline

Transferring funds offline is a simple and hassle-free procedure. Here is the detailed step guide to follow for initiating your NEFT transfer offline or by visiting the respective bank branch:

• Visit your nearest bank branch and request an NEFT form.
• Enter the beneficiary’s name, account number, IFSC code, bank name, and transaction amount and complete the NEFT form.
• Fill out the NEFT application form and hand it to the bank representative.
• Pay out the NEFT charges as applicable for your transaction, if any.
• Once processed, you will soon receive a transaction receipt as proof of the transfer charges for NEFT.

Who Can Use NEFT to Transfer Funds?

Individuals, businesses, and corporations with bank accounts can choose NEFT services. Individuals without bank accounts can also deposit their funds at any nearby ATM branch with NEFT-enabled services. In this scenario, they receive a unique NEFT code confirming their transaction.

Similarly, any individual or business can receive payments through NEFT. The NEFT system assists in transferring lump sum amounts between India and Nepal. It also helps convert the transferred amount from Indian Rupees to Nepalese Rupees to facilitate cross-border transactions. 

To transfer funds, individuals or businesses need an account with a bank participating in the NEFT ecosystem. Funds can be transferred only to those individuals and entities having an account with an NEFT-enabled bank. The full list of NEFT-participating banks can be found on RBI’s website. 

Charges of NEFT Transition

NEFT services are a reliable and convenient method of transferring lump sum funds electronically. The Reserve Bank of India imposes no charges for carrying out NEFT transactions. However, individual banks might have set their fees and charges within limits. This NEFT service is available throughout India and can be used widely to pay several transactions, such as EMIs or credit card bills. In usual cases, there are no charges applicable for NEFT transactions through online mode. 

Benefits of NEFTS

The benefits of NEFT are as follows:

• Availing NEFT services is the most common and cost-effective mode of online transfer. There are minimal transaction charges. 
• With NEFT, you can opt for online transfer anytime through the banking pay app or net banking portal. The service is available every day of the year.
• NEFT charges vary from bank to bank. However, most banks do not charge fees for making NEFT transactions online.
• With NEFT, you can initiate a transfer of funds across India with its extensive network of branches.
• The receiver and sender receive quick confirmation of ongoing NEFT transactions through SMS.
• Individual customers can use NEFT services to make payments on loan EMIs, credit card bills, and other bills.

What Else NEFT Can Do?

With NEFT, individual bank customers can pay their due credit card bills through this platform as and when required. Moreover, the NEFT system allows bank customers to make payments directly to credit card companies through different transaction codes. To make further payments, you must enter this code and the bank’s IFSC code. You can get this information from your bank’s website or local branch.

What Happens When a Bank Authorises a NEFT Payment?

NEFT payments usually take place in hourly batches. Thus, considering how the bank functions, your beneficiary expects to receive the payment within a defined period. Here is a detailed overview of the process that takes place while authorising an NEFT payment:

• Your respective bank branch outlines a standard message containing the transaction details. This message will be sent to the NEFT service centre.
• The service centre will forward this message to the NEFT Clearing Centre. The Reserve Bank of India (RBI) maintains the NEFT centre through its National Clearing Cell in Mumbai. The message ensures that the payment is included in the upcoming batch.
• The NEFT Clearing Centre further sorts incoming requests for payments. After this, accounting entries specify the amount of money to derive from the original bank.
• For example, suppose you initiate a payment of Rs. 2 lakhs. In that case, the centre will create an accounting entry stating that the bank will pay Rs. 2 lakhs. The respective NEFT service center has to send the remittance messages to the respective bank. 
• Once the information is sent to the destination bank, the message is forwarded to the beneficiary account. 

Once all participants from the sender’s and beneficiary’s banks to service centres complete the above steps, an NEFT transfer occurs. 

Who Can Use NEFT to Transfer Funds?

Anyone with a bank account at a bank participating in the NEFT network can use NEFT to transfer funds, including individuals, businesses, and corporations. 

NEFT is a cornerstone of India’s digital banking ecosystem in this digital era. It has significantly changed how we transfer funds by maintaining high security and convenience. Moreover, most banks have waived charges for online transactions, making NEFT very cost-effective. Offline transactions, however, are subject to nominal fees. Keeping yourself informed is essential for effective utilisation of this service. 

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2. NEFT Timings