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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.
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.
Earlier, the NEFT clearance would take place subject to specified slots:
In December 2019, the Reserve Bank of India (RBI) has introduced the all-new NEFT payment system that is active and up 24×7 and 365 days a year. The objective behind this new clearance system is to promote digital transactions and the global integration of Indian financial markets.
You can place an NEFT request at any point in time. The NEFT request will be sent to a queue. All the NEFT requests in the queue will be cleared once every hour.
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.
The details related to applicable transaction charges on remitter and receiver ends are listed below:
Transfer Amount (in ₹)
Transaction Charges (in ₹)
Up to 10,000
2.5 + GST
5 + GST
1 lakh-2 lakh
15 + GST
Above 2 lakh
25 + GST
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 on 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 the ‘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.
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.
In addition to making money transfer to a recipient, you can pay a credit card bill via NEFT.
No. With NEFT, you can transfer money to any account that is held with an NEFT-enabled bank branch within India.
It may take up to two working days for funds to get credited to the beneficiary via NEFT.