NEFT is a popular fund transfer system that can be used by an individual to make the transfer of money from any bank and any branch of that bank, to another bank’s branch within the country. Many people tend to overlook the need to use and understand such payments methods, citing that they happen to be too complex for them. However, there is no such case with NEFT. It is a very simple procedure and entails the least amount of formalities. Moreover, there are abundant benefits that one can reap by using NEFT for fund transfer. Take a look at some of them:
- There is no need to stand in long queues to withdraw cash from an ATM or else to deposit the same in someone else’s account. The amount can be transferred in a very few simple steps
- The process of fund transfer takes place much faster through NEFT as the entire process takes place digitally, without the use of any paper. Therefore, there are no money instruments involved in the process or manual errors that could delay the process of fund transfer
- NEFT is a very convenient method of handling fund transfer requests as it can be initiated from any place, whether you are at home or the office. All it requires is an internet connection, which is not very hard to find
What are the charges associated with NEFT payments?
Like every service, even NEFT entails a service charge, which is quite meagre but has to be paid nevertheless. The Reserve Bank of India (RBI) has directed all the banks to not levy any charges on NEFT transactions initiated online via internet banking and/or mobile banking. However, NEFT initiated at the bank branch is charged with a nominal amount. Following is the structure of such charges:
- Amount up to Rs. 1,00,000 – Rs. 2 + Applicable Charges
- Amount Above Rs. 1,00,000- Rs. 10 + Applicable Charges