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.
Who can use NEFT?
Any individual or entity with a bank account in India can use NEFT for fund transfers. This includes individuals, sole proprietorships, partnerships, limited liability partnerships, companies, trusts, and government organizations.
What are the Features NEFT?
- Easy and Secure: NEFT offers a secure way of transferring funds online, making it an easy and reliable option for individuals, small and medium-sized businesses, and big corporations.
- Wide Reach: NEFT allows for fund transfers between accounts of different banks that are part of the NEFT network. This means that you can send or receive money to and from any bank in India that participates in the NEFT system.
- No Minimum or Maximum Limit: There is no minimum or maximum limit on the amount that can be transferred via NEFT. You can transfer any amount, subject to the maximum limit set by your bank.
- NEFT Timings: NEFT transactions time can be initiated and processed 24*7, giving you the flexibility to transfer funds at any time of the day or night.
Advantages of NEFT
- NEFT provides several advantages over traditional methods of fund transfer.
- NEFT is a cost-effective method of transferring funds, as it does not involve any transaction fees for the beneficiary.
- NEFT ensures that the transfer of funds is carried out securely and efficiently, reducing the risk of fraud and errors.
- NEFT transactions can be initiated online, making it a highly convenient method of transfer for individuals and businesses alike.
- NEFT transactions can be performed 24×7, allowing users to transfer funds at any time, even outside of regular banking hours.
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.
Frequently asked questions
1. Do all Banks Provide NEFT Service?
All major banks do provide NEFT service but there may be banks that do not offer this service as of now.
2. Is it important to add a beneficiary to send money through NEFT?
Yes, it is important to add a beneficiary to send money through NEFT
3. What is the NEFT transfer limit?
The NEFT (National Electronic Funds Transfer) transfer limit varies depending on the bank and the type of account held by the sender. However, as per the RBI (Reserve Bank of India) guidelines, the minimum amount that can be transferred through NEFT is Rs.1 and there is no maximum limit for NEFT transactions.
4. How much time does it take to settle NEFT transactions?
NEFT transactions usually settle within 1-2 hours, although the exact time may vary depending on the bank’s processing time and the time of day the transfer is initiated.
5. Are NEFT transactions chargeable?
Yes, NEFT transactions are chargeable. While some banks offer NEFT transactions for free, others charge a nominal fee that varies depending on the amount of the transaction.
6. Can I make a NEFT transaction on the weekend?
Yes, NEFT (National Electronic Funds Transfer) transactions can be made on weekends. However, the availability of the service may vary depending on the bank and the processing timings.
7. Is NEFT available 24 * 7?
Yes, NEFT (National Electronic Funds Transfer) is available 24×7, except for bank holidays and Sundays, as per the recent RBI guidelines.
8. Can NEFT be Cancelled?
Yes, NEFT (National Electronic Funds Transfer) transactions can be cancelled by the sender before they are settled. The cancellation request needs to be initiated by the sender’s bank, and it can be done either online or by visiting the bank branch.