NEFT, also known as National Electronic Funds Transfer is an electronic payment system which facilitates one-to-one funds transfer. It helps in the transfer of money from one bank to another or one branch to another. Customers can only transfer funds electronically to NEFT enabled banks in the country. To understand NEFT meaning, you should know about the National Payments Corporation of India, which played the key role in developing this electronic transfer method that operates today.
NPCI or National Payments Corporation of India is an organization which looks after all the retail payments in India. The Reserve Bank of India (RBI) and Indian Banks Association (IBA) played a major role in the introduction of NPCI.
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Any individual, firm or corporation with a bank account can transfer funds electronically using NEFT. Any individual without a bank account can also transfer funds by visiting the bank branch and depositing cash at the NEFT enabled branches. Now that you are aware of NEFT meaning, let us check the modes with which we can use the NEFT service below:
- Cash Deposit at NEFT enabled branches
How to do NEFT transfer?
You can make NEFT transfers using internet banking, mobile banking facility or visiting an NEFT enabled branch. To carry out NEFT transfer electronically, you will be required to follow the below-mentioned steps:
Step 1: Log in to your bank net banking or mobile banking
Step 2: After successful login, click on “Transfer” and select add beneficiary
Step 3: Provide details like Beneficiary Name, Account Number, Address, IFSC code and other such required information in the provided fields
Step 4: Now tick the button next to “Accept Terms of Service (Terms & Conditions)” and click on “Confirm”
Step 5: A security password will be sent to the registered mobile number to validate the beneficiary
Step 6: Post 30 minutes of validation (approx.), the beneficiary would reflect in your internet banking or mobile banking app
Step 7: Once added, you can easily transfer funds to the beneficiary account using NEFT by selecting NEFT as transfer mode. Post this, select the beneficiary you wish to transfer funds to and enter the amount that you wish to transfer
Step 8: Click on ‘accept Terms of Service (Terms & Conditions)’ and press to confirm
Step 9: You can also transfer funds without adding beneficiary by clicking on One Time Transfer.
What are the NEFT Charges?
The Reserve Bank of India (RBI) has directed all banks to not levy any charges on NEFT transactions initiated online via internet/mobile banking channels. However, a nominal fee is charged on NEFT transactions carried at the bank. NEFT charges as per the Reserve Bank of India are given below:
|Inward transactions at destination bank branches (for credit to beneficiary accounts)|
|Free of cost, no charges to be applied to such transactions on beneficiaries|
|Outward transactions at originating bank branches (charges applicable for the remitter)|
|Up to Rs.10000||Not more than Rs.2.50 (Plus Applicable GST)|
|Above Rs.10,000 and up to Rs.1 lakh||Not more than Rs.5 (Plus Applicable GST)|
|Above Rs.1 lakh and up to Rs.2 lakh||Not more than Rs.15 (Plus Applicable GST)|
|Above Rs.2 lakh||Not more than Rs.25 (Plus Applicable GST)|
What is the NEFT transaction settlement timing?
The Reserve Bank of India (RBI) has made NEFT system available round the clock throughout the year on all days, i.e., on a 24x7x365 basis. Settlements of fund transfer in NEFT is done on a half-hourly basis. Prior to this change, NEFT timings were:
|Weekdays (Except 2nd & 4th Saturday of the month)||8 am to 7 pm|
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What is the NEFT Limit?
Now that you know about NEFT meaning, charges and settlement timing, you should also be aware of NEFT limit. However, there is no minimum or maximum limit with NEFT transfers, but every customer will be restricted to a maximum of Rs.50000 per transaction.
Major Banks providing NEFT Facility
Now that you know what is NEFT meaning, let us check the major banks which fall under the list of NEFT enabled banks provided by the Reserve Bank of India (RBI).
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|Major Banks providing NEFT Facility|
|State Bank of India||HDFC Bank|
|Axis Bank||ICICI Bank|
|Kotak Mahindra Bank||Punjab National Bank|
|Yes Bank||IndusInd Bank|
|Union Bank of India||Indian Bank|
|Canara Bank||Bank of India|