We can now complete the majority of our banking requirements from the comfort of our homes thanks to advancements in banking technology. With the development of technology, it is also crucial that you have a foundational understanding of internet banking. Therefore, we will talk about NEFT today, one of the most popular ways to transfer money in India.
What is NEFT:
National Electronic Funds Transfer is known as NEFT. It’s a form of money transfer that makes it possible to make individual payments within India. You can transfer money between accounts through the NEFT service, which is owned and run by the Reserve Bank of India.
You are able to start transfers between your own two bank accounts or from your account to the accounts of other people at various banks. However, you can only do this kind of transaction if your bank supports NEFT.
Transaction timings:
There were specific times for clearance back when the RBI first introduced NEFT. The RBI modified the regulations in December 2019, allowing money transfers using NEFT to take place around-the-clock, throughout the year, even on bank and public holidays.
The recipient will get the funds after a half-hour from the moment you start the transaction because banks clear NEFT transfers on a half-hourly basis.
The limit on fund transfers:
Banks may, however, impose their own maximum daily transaction thresholds. Therefore, you should inquire about NEFT fund transfer restrictions with your bank.
Charges for NEFT transactions:
NEFT transactions made through online banking or mobile banking applications are free of charge. However, your bank may impose a small fee dependent on the transfer amount if you decide to carry out NEFT transactions through bank branches. The list of fees assessed for online transactions is provided below.
| Max Transaction amount in INR | Charges in INR |
| 10,000 | 2.5 + GST |
| 10,000 to 1,00,000 | 5 + GST |
| 1,00,000 to 2,00,000 | 15 + GST |
| 2,00,000 and above | 25 + GST |
How NEFT works?
The NEFT system makes it easy and convenient to transfer money. What you must do is as follows:
- Access your online banking account by logging in.
- Click ‘Fund transfer’ on the home page.
- Pick ‘NEFT’ from the drop-down option that appears.
- If you haven’t previously, please take note that you must ‘Add beneficiary’ to the beneficiaries list in your account.
- You must select the ‘Add beneficiary’ option on the page in order to add a new beneficiary.
- Enter the necessary information about the beneficiary, including his or her name, bank account number, IFSC, etc.
- ‘Confirm’ or ‘Add’ buttons should be clicked.
- You will be required to enter the OTP issued to your registered mobile number in order to verify this step.
- Your action would then be processed after that. About 24 hours will pass before a beneficiary can be added.
- You must choose the beneficiary’s information (to whom you need to send the money) from your list of beneficiaries after the beneficiary has been added to your account.
- Enter the necessary transfer amount, then confirm the transaction.
- The sum will be sent from your bank account to the other’s when you click “Confirm.”
Advantages of NEFT:
Let’s examine some of NEFT’s benefits now that its definition is apparent.
- Within India, money can be transferred from one account to another account at any bank that supports NEFT.
- This facility is open every day of the year, including holidays, at all times.
- A secure method of money transmission takes 30 minutes.
- SMS and email are used to notify the sender of the transaction’s confirmation.
- For online NEFT transfers, there are no fees to be paid.
- Demand draughts or checks are not required for these transactions.
- To transmit money with NEFT, you do not need to go to your bank’s branch.
- Additionally, you can use NEFT to pay your energy bills, credit card payments, loans, and EMIs.
To understand other popular fund transfer methods in India, you can also read about what is imps, what is upi, and what is rtgs and compare how each works.
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