With the advent of technology, Inter Bank Money Transfer has been simplified with the availability of electronic fund transfer. Presently, two primary systems are operating under Inter Bank Transfer – NEFT and RTGS. SBI enables its customers to use RTGS and NEFT facilities at the bank or by using SBI online banking for fund transfer. It should be noted that both RTGS and NEFT services are made available for the customers with a service charge levied by the bank. Let us know about SBI NEFT charges.
SBI NEFT Charges
In December 2019, the Reserve Bank of India (RBI) operationalized NEFT on a 24×7 basis and directed the banks to not to charge any fees on NEFT transactions done online via internet banking and/or mobile banking apps by savings account holders. Hence, no service charges are levied on NEFT transactions by SBI.
Earlier, the bank used to charge the following charges on NEFT transactions:
|Transaction Amount||Transaction Fee|
|Up to Rs.10,000||Rs.2|
|Above Rs. 10,000 to Rs.1 lakh||Rs.5|
|Above Rs.1 lakh to Rs.2 lakh||Rs.15|
|Above Rs.2 lakh||Rs.25|
This directive for waiving off NEFT and RTGS charges on online transactions has been initiated to give further impetus to digital retail payments.
Introduction to SBI NEFT
National Electronic Fund Transfer (NEFT) system is a nation-wide payment system smoothing one-to-one funds transfer. According to this scheme, individuals can transfer funds electronically from any bank branch to any individual having an account with any other bank branch participating in the scheme and located within the country. There is a certain processing fee that is calculated above a particular transfer amount which needs to be paid by the customer/remitter.
- In India, NEFT started in November 2005 and since then it has assisted individuals, firms, and corporates to transfer funds via electronic medium
- This process is basically achieved through electronic messages
- Unlike RTGS (Real Time Gross Settlement), NEFT is not processed on a real-time basis. But half-hourly batches are run to speed up the transactions
- State Bank of India (SBI), India’s largest banking and financial services company was among the early players who actively participated in the successful launch of the NEFT service
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SBI NEFT Facts
There are certain facts about SBI NEFT charges, transactions, and service model which should be understood and remembered for a hassle-free fund transfer experience. Below mentioned are some of the SBI NEFT facts:
- For NEFT transfers there are time limit restrictions. The transfer will proceed successfully within the same day if it is within the stated limit; or else it will take one more working day
- The minimum amount which can be transferred through NEFT is Rs. 1. SBI NEFT charges do not apply below an amount of Rs. 10,000
- There is no maximum transfer limit; however, RTGS is usually preferred to transfer fund values above Rs.2,00,000
- Each transaction via NEFT is processed on an hourly basis, and it takes a maximum of 2 hours
- The account holder can easily transfer & receive funds using NEFT. Furthermore, the non-customers are also allowed to deposit cash through NEFT up to Rs. 50, 000/- per transaction
- NEFT system is regarded as safe, simple, secure, and quick for transferring money online
- It is crucial to note that NEFT-enabled banks are only allowed to transfer & receive money online
- The remitter needs to keep the necessary details like account number, beneficiary name, account type, IFSC code etc. while processing an NEFT transaction
Benefits of SBI NEFT Service
For accessing this smart fund transfer service, the customers are certainly paying different SBI NEFT charges. This points out to the service being a reliable and efficient setup which is filled with several benefits. Let us analyze some of the prominent advantages of SBI’s NEFT service.
Safe and Effective- For a smooth movement of funds on the internet, you can surely select NEFT since it processes the money transfer action quite quickly
Low Processing Charges –NEFT is regarded as a flexible payment option which is quite economical. SBI NEFT charges are quite low and have even reduced significantly in the recent past. Such a low processing charge allows you to transfer any amount of money without giving a second thought
Extremely Dependable – SBI’s NEFT service is highly dependable when it comes to transferring payments or receiving funds over the internet. Not only SBI, but several banks in India are regulated under the efficient norms set by the Reserve Bank, and hence, you can count on the internet banking facility to be satisfyingly safe
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Limitations of SBI NEFT Service
Even though we trust this online service, but there are certain drawbacks which might restrict its usage to a limited group of people. Let us check the primary disadvantages of SBI’s NEFT service.
Slightly Technical –If we try to spot, then one of the major drawbacks of NEFT transfer in India is the highly technical process of funds transfer which might not be successfully operated for everyone. A person with little knowledge of computers or the internet might face problems accessing an internet banking account
Threats Involved with Online Payments –Although most banks in India do implement proper steps to secure an NEFT transaction, there are possibilities that your private information might get leaked to a hacker if you’re accessing an unsecured browser
SBI NEFT FAQs
Q. What is the minimum and maximum amount for NEFT transactions under SBI Retail Internet Banking?
No minimum amount is needed for NEFT transactions under SBI Retail Internet Banking. On the other hand, R. 10 lakh is the maximum transaction amount for the same.
Q. What are the SBI NEFT charges levied by the bank?
There are no service charges levied on NEFT transactions in SBI.
Q. What are the timings for SBI NEFT transactions?
NEFT and RTGS transactions are sustained by the Reserve Bank of India. NEFT transactions are sent to RBI on a 24×7 basis on all days of the week.
Q. If an NEFT fund transaction is not credited to a beneficiary account, does the money gets back to the Remitter?
The answer to this question is YES! In a situation when a beneficiary’s bank is unable to credit his/her account for any reason, then the money would be returned to the remitting bank within a period of 2 hours of completion of the batch during which the transaction was processed. Further, as the amount is received by the remitting bank, it would be credited to the remitter’s account.
Q. Is the customer informed about the SBI NEFT charges while making a transaction?
Every time while making an online fund transfer for a value above Rs. 10,000 a certain SBI NEFT charge would be reduced from the remitter’s account.
Q. What is the compulsory information required to make an NEFT payment?
For the successful dealing of an NEFT transaction, the remitter needs to supply the following information:
- Particular amount to be remitted.
- Remitting account number which would be debited
- Beneficiary bank name
- Beneficiary name
- Beneficiary account number
- Sender to receiver information, if any
- Destination bank’s IFSC code