National Electronic Funds Transfer
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- India
- related
- RTGS
NEFT stands for National Electronic Funds Transfer. Started in November 2005, NEFT is an electronic funds transfer system set up and managed by the RBI. NEFT allows the online transfer of funds from one NEFT-enabled bank account to another.
Features #
The National Electronic Funds Transfer system is one of the various methods of online money transfer. It is regulated by the RBI and hence, works as per the guidelines laid down by RBI.
NEFT is a one-to-one payment facility
NEFT transactions can be processed only between the banks that offer NEFt-enabled services
Transactions made through NEFT do not take place in real-time; implying that it takes a few days for NEFT transactions to complete
Before December 2019, RBI had fixed timings during which NEFT transactions can be processed. Any NEFT transaction will 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
To transfer funds through NEFT, you must add beneficiaries on the internet banking portal of your required bank
There are no limits on the amount of NEFT transactions
There is a fee applicable on all NEFT transactions; the amount varies from Rs. 2.5 to Rs. 25, depending on the amount being transferred
As per RBI guidelines, the payments made via NEFT are processed and settled in batches of half-hour
Advantages #
Among all the other methods of online money transfer, here’s why you can opt for NEFT (National Electronic Funds Transfer)-
NEFT makes the transfer of funds easy, convenient and feasible
All NEFT transactions take place online; hence, there is no involvement of a third party
Owing to the involvement of RBI, NEFT transactions are completely safe and secure
The receiver and sender of the funds gets notified instantly upon completion of the transaction
NEFT does not require cheques or demand drafts while transferring money; hence, it is economical
Any account holder, whether an individual, firm or corporate can carry out NEFT transactions. The only required condition is that the banks of both the parties must be NEFT-enabled
Apart from transferring money, you can also use NEFT to pay your loan installments, credit card dues, EMIs, etc.
Charges Applicable on NEFT Transactions #
NEFT transactions involve the following additional charges as money transfer fee-
Transaction Amount Fee Amount Less than or equal to Rs. 10,000 Rs. 2.5 Between Rs. 10,000 and Rs. 1 Lakh Rs. 5 Between Rs. 1 Lakh and Rs. 2 Lakh Rs. 15 Equal to or more than Rs. 2 Lakh Rs. 25