We’ve all used NEFT at some point or the other to make an online transaction. But how many of us know what it’s all about?
What is NEFT?
NEFT stands for National Electronic Funds Transfer, and it was launched in the year 2005. NEFT allows two parties to transfer funds easily, irrespective of the banks they hold accounts with, as long as both their accounts are NEFT enabled.
Individual parties, small and medium-sized companies, and big corporates make use of NEFT over and over because of the fact that it’s one of the simplest ways money transfer can be carried out.
Who can avail NEFT system for a fund transfer?
Any Individual, firm, or corporate maintaining accounts with any member bank, participating in the NEFT system, can electronically transfer funds to any individual, firm, or corporate having an account with any other bank in the country participating in the NEFT system. Furthermore, individuals who do not have a bank account can also make an NEFT transaction by visiting the bank branch and providing the required details.
Details Required for NEFT Fund Transfer
The details that are needed for an NEFT fund transfer are:
- The beneficiary’s name
- The bank account branch
- The bank account name
- The bank account number
- The IFSC Code
- The amount to be remitted
How to transfer money using NEFT?
We’ve talked about the steps to transfer money using NEFT in a simple way earlier. Let’s understand in detail, how NEFT transactions work.
- Add/select a beneficiary
- Enter the amount
- Authenticate your transaction
We’ve talked about how you can make a transaction via NEFT in a much more detailed way.
Earlier, any NEFT transaction would be processed only between 8:00 AM and 6:30 PM on weekdays, and 8:00 AM to 12:00 PM on Saturdays. However, from 2020, there are no restrictions on NEFT transfer time. All NEFT transactions can be performed 24*7.
Charges Applicable on NEFT Transactions
For individuals who are on the receiving end of an NEFT transfer, there are no charges whatsoever. No NEFT charges are applied to transactions that are initiated online. However, if you initiate the fund transfer, you would have to pay certain fees to process the same.
- Maximum of INR 2.50 (+ GST) for transfers up to Rs. 10,000.
- Maximum of INR 5 (+ GST) for transfers above Rs. 10,000 and less than Rs. 1 Lakh.
- Maximum of INR 15 (+ GST) for transfers above Rs. 1 Lakh and less than Rs. 2 Lakh
- Maximum of INR 25 (+ GST) for transfers above Rs. 2 Lakh.
What is the NEFT transaction limit?
This table points out the limitations with respect to NEFT transaction limits.
Benefits of NEFT
- NEFT saves a lot of time and effort
- NEFT provides high security
- Using NEFT means no transaction fee
Major Banks Providing NEFT Facility
|Axis Bank Limited||AU Small Finance Bank||Bank of Baroda|
|Bank of India||Bank of Maharashtra||Bandhan Bank Limited|
|Canara Bank||Central Bank of India||City Union Bank Limited|
|DCB Bank Limited||DBS Bank Limited||Equitas Small Finance Bank|
|Federal Bank Limited||HSBC Limited||HDFC Bank Limited|
|Indian Bank||Indian Overseas Bank||ICICI Bank Limited|
|IDBI Bank Limited||IDFC First Bank Limited||IndusInd Bank Limited|
|Kotak Mahindra Bank||Punjab National Bank||RBL Bank Limited|
|State Bank of India||Standard Chartered Bank||UCO Bank|
|Union Bank||Utkarsh Small Finance Bank||Yes Bank Limited|
End of the line
NEFT is an extremely convenient form of transferring funds electronically. It is quick and cost effective, and it also accommodates transfers to NRE and NRO accounts.