National Electronic Funds Transfer has made daily banking extremely convenient for most customers. With NEFT, you have the option of making fund transfers online and offline using specified details of the beneficiary account and a unique 11 digit IFSC code provided to the payee. Currently, the funds transfer options available are RTGS, IMPS and UPI in addition to NEFT. However, NEFT is preferred by most customers because of the low processing charges, high NEFT Limit and fewer limitations on the funds transferred.
NEFT Transfer Limit
With NEFT transfers, the biggest advantage is that there is no cap on the minimum and the maximum amount that you transfer. The minimum amount transferred can be as low as Rs.1 while for other fund transfer option like RTGS, there is a minimum limit of Rs.2 Lakh.
There is no maximum amount assigned by the Reserve Bank of India (RBI) for NEFT Transactions. However, a limit may be specified by the bank that you hold your account with. For instance, HDFC Bank NEFT Transfer Limit is Rs.25 Lakh per day per customer ID via online NEFT Transfer.
For cash transactions, you can transfer a maximum of Rs.50000 in each transaction. However, there is no limit on the total amount you transfer.
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The Reserve Bank of India (RBI) has made the NEFT system available round the clock throughout the year on all days, i.e. 24x7x365 days. NEFT presently operates in batches on half-hourly intervals throughout the day.
- Earlier, NEFT facility used to operate from 8 AM until 7 PM on all working days (Except 2nd and 4th Saturday of the month). As mentioned above, NEFT works on a batch-wise clearing mechanism. This means that all the requests placed for NEFT get queued up and are cleared based on the settlement batches
- For requests placed during the after-hours of a Saturday, the next available slot would have been Monday morning, or in case of holidays the morning clearance slot of the next working day
How can you make NEFT Transfers?
NEFT Transfers can be made online using net banking account of the individual. NEFT follows a queue based clearing mechanism.
- First and foremost an individual or a firm needs to fill up a form with all the necessary details such as beneficiary account number, branch name for beneficiary, type of account of the beneficiary and the IFSC code of the branch
- The branch where the request originates will then deduct the amount and send a message to the Pooling Center of NEFT, also known as the NEFT Service Centre
- The message is then passed on to the Clearing Centre
- The Clearing Centre clears the requests based on destination banks and sends the message as well as the amount to the receiving bank
- The receiving bank then has to pass on the funds into the receiver’s account
Another option available is to make the transfer offline through any branch of the bank that you hold your account with.
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No charges are levied on NEFT transactions initiated online via internet/mobile banking. Based on the amount that you transfer, processing fees are levied on NEFT transactions as mentioned below:
- Inward transactions at destination bank branches (for credit to beneficiary account) – Free, no charges levied on beneficiaries.
- Outward transactions at originating bank branches – charges applied to the remitter as follows:
|NEFT Transfer Amount||NEFT Charges|
|For transactions up to Rs.10000||Not exceeding Rs.2.50 + GST|
|For transactions above Rs. 10000 to Rs. 1 lakh||Not exceeding Rs.5 + GST|
|For transactions above Rs. 1 lakh and up to Rs. 2 lakh||Not exceeding Rs.15 + GST|
|For transactions above Rs. 2 lakh||Not exceeding Rs.25 + GST|
You can get all the details of the charges applicable for any NEFT funds transfer via the RBI official website or from your bank.
What are the benefits of using NEFT?
There are several reasons which make fund transfers via NEFT a very compelling proposition.
- In order to send money to someone, you don’t have to do that via cheque or demand drafts or by physical mode
- You can initiate the process right from your phone or from the comfort of your home using net banking or phone banking
- You can get bank transactions done without having to visit a branch
- The convenience doesn’t stop at that, as the beneficiary doesn’t have to visit any bank branches to receive the money
- The RBI enforces certain mechanisms with the help of which both the sender and the receiver can receive notifications via SMS or email
- And the most important of all being that funds are available to the other party within an hour or so without you having to worry about the safety of the funds
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NEFT do not solely serve the purpose of transferring funds. In fact, you can do a lot more with the help of NEFT facility.
- You can pay for your credit card dues using NEFT facilities
- You can also pay for loan installments using NEFT payment
- RBI has policies in place that mandate banks to compensate users in certain cases
- If the NEFT funds are not deposited in the receivers account within the stipulated time or is not returned to the sender’s account within the specified time, the banks must compensate the respective parties
- In cases of delay in transmitting NEFT funds, the bank must pay an interest of 2 percent on the top of the existing RBI LAF Repo Rate
- What is more important is that RBI directs banks to do so as a proactive measure, unlike the traditional way of waiting for the client to file a complaint