NEFT or National Electronics Funds Transfer is a fund transfer method using which users can transfer money from one bank account to another. These transfers can be made by any individual who has an account with an NEFT-enabled bank to another such bank account.
To perform an NEFT transaction, a user needs to add the recipient as a beneficiary by entering the IFSC code, name, and email address. The IFSC is an 11-digit alphanumeric code allotted to each bank branch which is a part of the NEFT network.
What is the NEFT Cut-off Time?
Until December 2019, RBI had fixed timings during which NEFT transactions could be processed. Any NEFT transaction would be processed only between 8:00 AM and 6:30 PM from Monday to Friday, and 8:00 AM to 12:00 PM on Saturdays.
However, from 2020, NEFT transactions can be performed 24*7. This was done to promote digital transactions and global integration of financial markets. It must be noted that NEFT uses quite a simple mechanism to perform the transfer of funds from one bank account to another. Explained below is the process of how NEFT works.
It must be noted that while the general time for NEFT transfers remains the same, all banks have different NEFT cut-off times. Apart from this, most banks do not offer fund settlement services on the 2nd and 4th Saturdays and all Sundays of every month, along with a few listed national holidays.
You Can Read More About NEFT Transfer Timings
List of NEFT Holidays
As per the rules of RBI, NEFT-enabled banks do not provide facilities for NEFT transactions on the following national holidays-
- 1 April (Annual closing of banks)
- Good Friday
- Ramzan Eid
- Bakra Eid
- Independence Day
- Muharram
- Mahatma Gandhi Jayanti
- Vijaya Dashmi
- Christmas
For More Information: List of NEFT Holidays
Additional Charges of NEFT Transactions
Until December 2021, NEFT transactions involved the following additional charges as money transfer fees:
| 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.
Amount Transfer Limit on NEFT
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.
