National Electronics Fund Transfer, also known as NEFT, allows people to transfer funds electronically from one bank account to another. This money transferring system was launched in 2005 and has given way to IMPS, UPI, and many other payment solutions that are in use today.
Even with faster payment modes available, NEFT holds its own place in the financial market. It is particularly relevant for companies and individuals who wish to transfer large sums of money. This is because IMPS and UPI come with daily transaction limits that vary from bank to bank.
Thus, it is essential to understand how you can go about transferring funds by using NEFT.
Steps to Transfer Money through NEFT
Transferring funds through NEFT does not require the consumer to follow complex transfer procedures. The following steps are simple to follow and do not eat up a lot of time.
The below steps explain how you can transfer money through NEFT:
- Log in to your internet banking account, and click on ‘fund transfer’ on the main page
- From the drop-down menu that appears, select ‘NEFT’
- You need to ‘add beneficiary’ to the list of beneficiaries in your account if you haven’t done so already
- To add a new beneficiary, you need to click on the ‘Add beneficiary’ option on the page
- You need to enter the beneficiary’s required information such as his/her name, bank account number, IFSC, etc
- Click on ‘confirm’ or ‘add’
- To authenticate this step, you will be asked to enter the OTP sent to your registered mobile number
- After doing so, your action would be processed, it will take around 24 hours to add a beneficiary
- Once the beneficiary is added to your account, you need to select the beneficiary details (to whom you need to send the money) from your list of beneficiaries
- Enter the amount that needs to be transferred and confirm your transaction
- Click on ‘confirm’ and the amount will be transferred from your bank account to the other’s
What are the transaction limits for NEFT payments?
The following are the transaction limits that are placed on NEFT payments:
|Minimum payment||Re 1|
|Maximum payment||No upper limit|
|Payments made to Nepal||Rs 50,000 per transaction|
There are no transaction fees for NEFT! As a means to promote digital transactions, RBI has scrapped transaction fees for all NEFT transactions, irrespective of your bank.
Time limit for NEFT payments
At present, NEFT payments can be made between 8 am and 7 pm. But from December 2019 onwards, RBI will allow NEFT payments to be made round the clock.
NEFT payments are an extremely convenient form of transferring funds electronically. It is a quick and cost effective system for transferring funds, and it also accommodates transfers to NRE and NRO accounts. You can find out if your bank branch is NEFT enabled by checking their website.