With the advent of technology, Inter Bank Money Transfer has been simplified with the availability of electronic fund transfer. This service enables money from the account of the remitter maintained in one bank to reach a beneficiary account maintained with any other bank branch. Presently, there are two primary systems operating under Inter Bank Transfer – NEFT and RTGS. It is important to note that, both of these schemes are sustained by the Reserve Bank of India.
SBI NEFT Charges
|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|
- Every bank which offers NEFT service in India for electronic fund transfer does ask for a certain fee. SBI NEFT charges are based on different transfer amounts which can be viewed on the bank’s official website.
- Quite recently SBI NEFT charges for internet banking or mobile banking were revised in a move to support digital transactions. Fund transfers up to INR 10,000 through NEFT via the internet or mobile banking modes is charged at INR 2.50. Further, for NEFT transactions from INR 10,000 to INR 1 lakh, the customer needs to pay INR 5. Similarly, the bank has revised its fees for electronic fund transfers between INR 1 lakh and INR 2 lakh to INR 15 and INR 25 for NEFT transactions above INR 2 lakh.
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. However, unlike RTGS (Real Time Gross Settlement), NEFT is not processed on a real-time basis. But hourly batches are run so as 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.
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 the 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.
- 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 individual transaction via NEFT is processed in 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 a 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 a number of 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.
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 computer or the internet might face problem to access an internet banking account.
Threats Involved with Online Payments –Although most banks in India do implement proper steps to secure a 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
If a 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.
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.
What is the compulsory information required to make a NEFT payment?
For the successful dealing of a 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