Banking has been an essential part of our daily lives. Since the time it has gone online, a lot of our chores have become easy to deal with. You don’t have to go to the bank and wait in long queues until it is your turn to request for money transfer. You do not have to fill up cheques, withdrawal forms, and challans anymore.
One of the online money transfer processes that are in use today is NEFT. Let us know more about the details of NEFT here.
1. What is NEFT?
National Electronic Funds Transfer (NEFT) is a mode of online funds transfer that is introduced by the Reserve Bank of India (RBI). It quickly transfers money between banks throughout India. A bank branch must be NEFT-enabled for a customer to be able to transfer the funds to another party.
2. What are the permitted timings to make an NEFT transaction?
Though various banks have set their own timings, the general timings are given below:
- Monday-Friday: 8 a.m. to 6:30 p.m.
- Saturday: 8 a.m. to 12 p.m.
However, the government is considering the suggestion to make the service available 24/7 for free from December 2019. The proposal is in line with the RBI’s Payments Settlement Vision 2019 to 2021.
3. Does NEFT come with a transfer limit?
You can initiate an NEFT fund transfer starting from Re.1. On the other hand, RBI has not set any maximum limit for the same.
When it comes to cash transactions, you can transfer up to Rs.50,000 per transaction. Also, there is no limit on the total amount you can transfer.
Few banks have set their own upper limit, such as HDFC Bank has set the upper limit of Rs.25 lakh per day per customer ID via online NEFT.
4. Are charges applicable to NEFT?
The details related to applicable transaction charges on remitter and receiver ends are listed below:
- Inward transactions at the recipient bank branches for credit to beneficiary account—free of cost, no charges for beneficiaries.
- Outward transactions at the transaction initiating bank branches—transaction charges applicable to remitter are given below:
Up to Rs.10,000
Rs.2.5 + GST
Rs.5 + GST
Rs.1 lakh-Rs.2 lakh
Rs.15 + GST
Above Rs.2 lakh
Rs.25 + GST
5. How can I make an NEFT transfer?
Step 1: Log on to the internet banking page of your bank.
Step 2: In the home screen, choose the ‘Fund Transfer’ option.
Step 3: Choose the ‘NEFT’ option in the funds’ transfer page.
Step 4: Choose the beneficiary from the list to send money.
Step 5: If you wish to add a new beneficiary, click on ‘Add Beneficiary’ button on the page. Enter details such as account number, name, IFSC, bank branch, and type of account.
Step 6: Verify the entered details and confirm.
Step 7: Enter the 4-digit OTP you receive on the registered mobile number to confirm the beneficiary addition.
Step 8: After the prescribed time, the beneficiary added will be ready for fund transfer.
Step 9: Choose the beneficiary, select the bank account from which funds must be transferred, enter the amount to be transferred, and click the ‘Confirm’ button to initiate the transaction.
6. Benefits of NEFT
- It is economical to use NEFT for money transfer.
- NEFT is built on a secure platform.
- No need of using a cheque or demand draft for money transfer.
- Transferring money does not require you to visit the bank.
- Initiate funds transfer online.
- The transfer can be completed faster, with convenience.
Q. Will I be able to initiate an NEFT transfer on a Sunday?
A. Yes. You can initiate a fund transfer on a Sunday. However, the money will be credited to the recipient only on the following working day.
Q. Is any other transaction possible via NEFT?
A. In addition to making money transfer to a recipient, you can pay a credit card bill via NEFT.
Q. Can I transfer money to a bank account outside India with NEFT?
A. No. With NEFT, you can transfer money to any account that is held with an NEFT-enabled bank branch within India.
Q. What is the maximum time required for the funds transferred through NEFT to get credited?
A. It may take up to two working days for funds to get credited to the beneficiary via NEFT.