National Electronics Fund Transfer or commonly known as NEFT is a fund transfer system used in India and is maintained by the Reserve Bank of India. The system of payment was introduced back in the year of 2005 to promote safe and hassle-free payment transfers from one bank account to another. NEFT can be used to transfer money between any two NEFT enabled bank accounts and it is done via electronic messaging on a one to one basis. The payments are processed on a batch basis. Reasons why users prefer NEFT are it is safe, secure, economical, reliable, paperless, and mostly error-free. NEFT has gained a lot of traction in recent years and is one of the major payment systems in India.
Timings for NEFT
The payments via NEFT are processed via banks between 8:00 AM to 7:00 PM on a daily basis except for the 2nd and 4th Saturday and the public holidays. It is also to be noted that the payment requests made after 6:30 PM will be processed the following day in the closest possible window.
Note:- Net Banking is mandatory for NEFT.
How to Transfer Funds or Money Through NEFT
1. Login to your net banking account from which you want to transfer funds.
2. Find and click Add Beneficiary button and enter the required details such as Name, Account Number (Reciever’s), IFSC Code, Account type (savings/current).
3. After the addition of Beneficiary, choose NEFT as a mode of payment and proceed with the on-screen instructions.
4. Enter the amount you would like to transfer and fill in the required info in the remarks section.
5. Click on the submit button and your NEFT transaction will be processed within the next available window.
This is the process to transfer money using NEFT. Please note that these steps may vary from bank to bank.
Most of the banks charge the following amount from your account for NEFT Transactions.
|Up to Rs.10,000||Rs. 2.50 + GST|
|Rs. 10,000 to Rs. 1 Lakh||Rs. 5.00 + GST|
|Rs. 1 Lakh to Rs. 2 Lakhs||Rs. 15.0 + GST|
|Above Rs. 2 Lakhs||Rs. 25.0 + GST|
These are the general charges levied by the Banks. Please note that these charges may vary from bank to bank and account type.