NEFT Meaning

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.

Any individual, firm or corporate 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:

Online Banking

• Internet Banking
• Mobile Banking

Offline Banking

• Cash Deposit at NEFT enabled branches

How to do NEFT transfer?

You can make NEFT transfers using internet banking, mobile banking facility or visiting a NEFT enabled branch. To carry out NEFT transfer electronically, you will be required to follow the below-mentioned steps:

Step 1: Login 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?

NEFT charges as per the Reserve Bank of India are given below:

What is the NEFT transaction settlement timing?

From July 10, 2017 onwards, settlements of fund transfer in NEFT is done on half hourly basis. There are 23 half hourly settlement batches that are operational from 8 am to 7 pm on all working days of week (Except 2nd and 4th Saturday of the month).

 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).