NEFT (National Electronic Funds Transfer) is an electronic funds transfer system maintained by RBI. Started in November 2005, the setup was established and maintained by Institute for Development and Research in Banking Technology. It enables bank customers in India to transfer funds between any two National Electronic Funds Transfer-enabled bank accounts on a one-to-one basis. It is done via electronic messages.
Minimum and Maximum Limit in NEFT
Currently, there is no limitation of money, that you can transfer through NEFT, in fact, even Rs 1 can be transferred using this facility. There are no charges for the inward payments but some minimal charges have to be paid for the outward payments.
Timings of National Electronic Funds Transfer
It works on a round-the-clock basis i.e. 24×7, 365 days. Earlier, NEFT transactions were available from 8:00 AM to 6:30 PM from Monday to Friday only. However, RBI has regularised that NEFT transactions will be available 24*7 on all days of the year, including holidays.
Also, after usual banking hours, NEFT transactions are expected to be automated transactions initiated using ‘Straight Through Processing (STP)’ modes by the banks.
How to Fund Transfer through NEFT
One needs to follow the procedure given below to transfer funds using NEFT-
- Log in to your online banking account using your login ID and password.
Go to the NEFT Fund Transfer Section.
- Add beneficiary by entering his/her name, bank account number, and IFSC Code.
- Once the beneficiary is successfully added, you can initiate an NEFT transfer. Just enter the amount to be remitted and send.
Charges of National Electronic Funds Transfer
- There are no charges associated with inward transfers i.e. no charges for recipient/beneficiaries
- Fund transfer via National Electronic Funds Transfer initiated online via internet/mobile banking channels is not chargeable
- Fund transfer charges applicable to remitter are: (GST excluded)
- Rs. 2.50 on transfers up to Rs. 10,000
- Rs. 5 on the transfer of Rs. 10,000 to Rs. 1 Lakh
- Rs. 15 on the transfer of Rs. 1 Lakh to Rs. 2 Lakh
- Rs. 25 on the transfer of more than Rs. 2 Lakh