NEFT or National Electronic Funds Transfer is a money transfer system that allows individuals to transfer money from one bank account to another, using both online and offline mediums. Among the other modes of money transfer, such as IMPS, RTGS and UPI, NEFT is the preferred method owing to its low processing cost, high NEFT amount transfer limit and fewer conditions on the transfer of funds.
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Even though any individual, corporate, firm, or company having NEFT-enabled bank accounts can transfer money through NEFT, the user’s bank must be a part of the NEFT network. Additionally, it is a prerequisite for the user to have active internet banking status. It must also be noted that to perform any NEFT transaction, the sender must know the receiver’s bank account details, contact details and the IFSC code.
NEFT Transfer Limit
One of the major reasons that people choose NEFT to transfer funds from one bank account to another is that RBI levies absolutely no NEFT amount transfer limit. This means that there is no minimum or maximum amount required to make transactions through NEFT.
An individual can transfer as low as Re. 1 through NEFT. There is also no cap on the maximum amount that can be transferred through this mode of funds transfer.
However, it is important to note that while RBI may not have any limitations on NEFT amount transfers, specific banks may have imposed certain restrictions.
Timings for NEFT Transfer
NEFT service is now available 24/7, which means you can transfer money at any time, any day of the year. Transactions are processed in batches every 30 minutes throughout the day. For example, if you make a transaction at 11:02 am, it will likely be processed by 11:30 am. This change allows for faster and more convenient money transfers through NEFT.
Read further details of NEFT Transfer Timings
Charges on NEFT Transactions
Until December 2021, NEFT transactions involved the following additional charges as money transfer fee-
| Transaction Amount | Charges (Maximum) |
|---|---|
| Up to Rs. 10,000 | Rs. 2.50 (+ GST) |
| Above Rs. 10,000 and less than Rs. 1 Lakh | Rs. 5 (+ GST) |
| Above Rs. 1 Lakh and less than Rs. 2 Lakh | Rs. 15 (+ GST) |
| Above Rs. 2 Lakh | Rs. 25 (+ GST) |
However, from January 2021, RBI has removed all the applicable charges on online NEFT transactions. This initiative was taken to promote digital transactions. RBI stated that with effect from 1 January 2020, no banks shall levy any charges from their savings account holders on online fund transfers done through NEFT (National Electronic Funds Transfer) system.
How to Transfer Money Through NEFT?
Transfer of funds via NEFT is simple and convenient. Here’s what you need to do-
Step 1: Log in to your internet banking account.
Step 2: On the main page, locate and click on the ‘Fund Transfer’ option.
Step 3: From the drop-down menu that appears, select ‘NEFT’.
Step 4: If you haven’t added the beneficiary to your account already, you need to do so. Click on the ‘Add beneficiary’ option on the page.
Step 5: Enter the required information of the beneficiary, such as their name, bank account number, IFSC code, etc.
Step 6: Click on ‘Confirm’ or ‘Add’ to proceed.
Step 7: To authenticate this step, you will receive an OTP on your registered mobile number. Enter the OTP when prompted.
Step 8: After completing the authentication, the action will be processed. It may take around 24 hours to add a beneficiary to your account.
Step 9: Once the beneficiary is added, select their details from the list of beneficiaries.
Step 10: Enter the amount you wish to transfer and confirm the transaction.
Step 11: Click on ‘Confirm’ and the amount will be transferred from your bank account to the beneficiary’s account.
