What is NEFT : Many of you must have used NEFT before sending money but do you have the right information about what is NEFT? All these subjects must be updated regularly because the bank’s rules keep changing.
Ever since the advent of online banking or internet banking, people’s going to the banks has in a way ended, now they do all their work sitting at home. This does not waste much of their time and they get the job done easily.
There are three main ways to transfer funds online which are NEFT, RTGS and IMPS. A detailed explanation of NEFT will be provided today out of these. So if we talk about NEFT, it is such a medium to send money online, through which we can easily send or receive money online from one account to another.
So that is why today I thought that why you people will also get complete information about what is NEFT, how it works and what are its benefits. So without further delay let’s start and know what is NEFT.
What is NEFT ? NEFT Kya Hai
The full form of NEFT is National Electronics Fund Transfer or it is also called “National Electronic Fund Transfer” in Hindi. It is a nationwide electronic funds transfer system that allows money to be sent or received easily and securely from one bank account to another.
All NEFT settlements are handled in batch-wise format. In this, money is sent on an individual basis to all NEFT-enabled banks across India through this system.
Before initiating any NEFT transfer, it is very important to have IFSC code of the bank along with other details like bank account number, bank branch, name of the account holder.
The system of this fund transfer is operated by RBI. Which started from the year 2005. NEFT provides this facility to the customers of the bank in India so that the customer of the bank can easily transfer his capital to any other NEFT enabled bank account. It is also very safe.
Fund transfer through NEFT system is not on real time basis but on 1st, 3rd and 5th Saturday of NEFT week (batch) with 23 settlement in half hourly batches from 8:00 AM to 7:30 PM During the transfer of funds is decided. , Also there is no settlement on second and fourth Saturdays, Sundays or even public holidays of the month.
The facility of NEFT is mainly done in two modes, one is offline mode which is done at the branches of banks and the other is online mode which is available to the customers through online banking and is done in batches.
Since transactions can be made easily through online banking, NEFT is viewed as a time-saving and easy process, which makes it a popular alternative to RTGS and IMPS. Where your money sent in RTGS and IMPS gets deposited in the front bank account immediately. Whereas in NEFT your money is received by the bank in the time-table prescribed by the bank.
Step By Step NEFT Transfer Process
Here I will provide you guys information about two different processes of NEFT.
#1 Online Process for NEFT
Neft Online fund transfers can be completed by following the steps listed below
Step 1: First of all log in to your net banking account. If you do not have a net banking account, you can also register it through your bank’s website.
Step 2: After that you have to add the beneficiary as per the recipient. Here beneficiary means to whom you want to transfer the money. And to do this, you will also need to fill some details of the Beneficiary in the ‘Add New Payee’ section, which are as follows:
- Account Number.
- Name.
- IFSC Code.
- Account type.
Step 3: Once the payee is added, you have to select NEFT as per the fund transfer mode.
Step 4: Now you have to select the account where you want to transfer the money, here you have to select the recipient, after that enter the amount you want to transfer and then add comment (optional).
Step 5: Then click on submit.
#2 Offline Process for NEFT
Step 1: The first thing you need to do is go to the bank.
Step 2: Fill the NEFT/RTGS form there. After that provide the following details about your beneficiary in that form:
- Name.
- Account Number.
- Name of bank.
- branch.
- IFSC Code.
- Account type.
- Account Number.
- The amount you want to transfer.
Step 3: After that submit your filled form which they can authorize to transfer the money further.
How does NEFT work?
Here I have tried to explain you the general process of NEFT transfer, but these nuances may differ from bank to bank, yet the process is almost the same.
- As I have already told you that how to fill the form in details through online or offline mode you have to provide complete information about the beneficiary. Also how banks authorize it and process it further.
- Your bank then issues a message and then sends it to your NEFT service centre in Mumbai and is available at the next branch of the transaction.
- The NEFT Clearing Center then sorts all the fund transfer transactions according to their banks and decorates those entries in such a way that the banks where your money is supposed to go are sorted very easily. The NEFT service center then receives the message where they sort all the entries, as well as messages about the money from the NEFT clearing center, where they are instructed to send the money to the recipient’s account.
NEFT transfer fees and charges
The point to note here is that the receiving bank does not charge you any fee for NEFT transactions. But for a sender, the sending bank charges them for the NEFT transaction. You will get information about how much they charge below.
| Transaction Amount | NEFT Charges |
| Amounts Rs 10000 तक | Rs 2.50 + Applicable GST |
| Amounts above Rs 10000 and up to Rs 1 lakh | Rs 5 + Applicable GST |
| Amounts above Rs 1 lakh and up to Rs 2 lakh | Rs 15 + Applicable GST |
| Amounts above Rs 2 lakh and up to Rs 5 lakh | Rs 25 + Applicable GST |
| Amounts above Rs 5 lakh and up to Rs 10 lakh | Rs 25 + Applicable GST |
Note: These charges are subject to change from time to time. So consult your bank before sending NEFT.
NEFT Transaction Timings
As of now, NEFT operates in hourly batches, so it is consistent with the operating hours of the service centers (from 8:00 am to 7:00 pm on normal weekdays and 8 am to 1 pm on Saturdays). works between
There are 8 to 6 batches to work with it one after the other. Hence money transfer is done from 8:00 am to 6:30 pm from Monday to Saturday (except 2nd and 4th Saturdays of the month). Apart from this, NEFT transactions also do not work in public and bank holidays.
Public Holidays when NEFT Transactions cannot be completed Republic Day, Good Friday, Annual Closing of Banks, RBI Annual Account Closure, Ramzan ID (Eid-ul-Fitr) / Rath Yatra, Independence Day, Dussehra / Vijaya Dashami and Muharram.
Who can transfer funds through NEFT?
Any firm, individual, corporation can use NEFT to transfer funds from one bank account to another, but the point to be noted is that they should have a bank account in that bank branch and NEFT in that bank branch Should be. The feature should also be enabled/available.
Apart from this, also know that it is not mandatory for you to have a bank account. Even if one does not have a bank account in a bank branch and still if he/she wants to transfer funds through NEFT then fund transfer can be done by filling NEFT instruction slip. But A single transaction can only transfer up to Rs 50,000 through NEFT.
Who can get money through NEFT?
If this work is done by individual, firm, corporation who have bank account in bank branch, then all of them can receive the money remitted by NEFT. But for this it is mandatory for the beneficiary customer to have a bank account in that bank branch in which NEFT facility is enabled/available.
What are the benefits of NEFT?
Let us now know about the benefits of NEFT.
- Through NEFT, any firm, individual, corporation etc. It is easy to move money between accounts.
- Here the beneficiary customer (to whom the money is sent) does not need to visit the bank branch to receive the money, nor does he need to do any kind of paper formalities.
- Fees in NEFT are very less.
- Funds can be transferred from anywhere, anytime using Internet Banking. They are very safe and secure. And if for some reason your transaction is not completed, then you do not need to panic because in this case your money is not lost anywhere, but it is also returned to the sent account.
- A low-value transaction would benefit from it more.
- Here the recipient does not have to pay any extra charges.
- Here each batch is of one hour.
Top Banks that provide NEFT facility
| ICICI NEFT | Central Bank of India NEFT |
| SBI OIL | Bank of Baroda NEFT |
| Punjab National Bank (PNB) NEFT | Union Bank of India NEFT |
| HDFC NEFT | Axis Bank NEFT |
| Indian Overseas Bank (IOB) NEFT | Syndicate Bank NEFT |
FAQ :-
Q. How long does NEFT take?
All fund transfer transactions are processed in batch-wise format and money is credited within 2 working days.
Q. Is it mandatory for all NEFT transactions to have IFSC code?
The answer is yes. IFSC code is very important for any NEFT transaction.
Q. Is NEFT facility available in all banks?
No, NEFT facility is not available in all banks.
Q. How does NEFT work?
You can get all the information about which banks are NEFT-enabled from the website of Reserve Bank of India (RBI).
what did you learn today
I sincerely hope that I have given you complete information about what is NEFT and I hope you have understood about NEFT. My request to all of you readers is that you also share this information in your neighborhood, relatives, your friends, which will bring awareness among us and it will benefit everyone a lot. I For more new information to be passed on, I would appreciate your cooperation.
It has always been my endeavor that I always help my readers or readers from all sides, if you people have any doubts, then you can feel free to ask me.
I will definitely try to clear those doubts. You read this article What is NEFT? And how does it work? How did you like it, do tell us by commenting so that we too get a chance to learn something from your thoughts and improve something.
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