NEFT - National Electronic Funds Transfer

National Electronics Fund Transfer (NEFT) is a nationwide electronic funds transfer system to send money from one bank account to another in a secure and hassle-free manner.

All NEFT settlements are done in batch-wise format. Using this system money can be sent on an individual basis to all NEFT-enabled banks in India.

To initiate a NEFT transfer, the bank IFSC code is required along with other details like bank account number, bank branch and name of the account holder.

NEFT Benefits

NEFT timings

NEFT Transaction Limits

Safe And Secure

Economical

Reliable and error-free

Organized and batch-wide settlement

Paperless

24×7

No minimum or maximum transaction limits

However, the per transaction limit is Rs 50,000

National Electronic Funds Transfer (NEFT) is a payment platform used by many banks across the country. It allows easy and hassle-free transfer of money from one bank account to another. As the world is slowly moving towards online banking, the concept of NEFT has become very popular in the country and is an easy way to transfer funds. This eliminates the need to go to the bank to transfer funds, because you can transfer funds sitting at home.

NEFT - Transaction Timings

Fund transfer through NEFT service can be used at any time and on any day of the year. NEFT services are conducted in batches every 30 minutes throughout the day and are processed by 9:30 am for any transactions made before this time.

How to transfer NEFT?

The process of National Electronic Fund Transfer (NEFT) is mentioned below:

Step 1: First of all log in to your net banking account. If you do not have a net banking account then register for it on your bank’s website.

Step 2: Add beneficiary as payee. To do this, you need to enter the following details about the beneficiary in the ‘Add New Payee’ section:

Step 3: Once the payer is added, select NEFT as the fund transfer method.

Step 4: Select the account you want to transfer money from, the payee, enter the amount you want to transfer, and add comments (optional).

Step 5: Click on Submit.

Requirements for making NEFT transfer

You must fulfill the below mentioned criteria before making NEFT transfer:

NEFT Transfer Fees and Charges

If you are receiving funds, no fees are charged. However, if you are sending money, the bank will charge a fee. Depending on the bank, the charges levied will vary. The charges charged by ICICI Bank and HDFC Bank are given below:

ICICI Bank

Transaction Amount

NEFT Charges

Amounts up to Rs 10,000

Rs.2.25 + Applicable GST

Amounts Over Rs 10,000 and up to Rs 1 lakh

Rs.4.75 + Applicable GST

Amounts Over Rs 1 lakh and up to Rs 2 lakh

Rs.14.75 + Applicable GST

Amounts Over Rs 2 lakh and up to Rs 5 lakh

Rs.24.75 + Applicable GST

Amounts Over Rs 5 lakh and up to Rs 10 lakh

Rs.24.75 + Applicable GST

HDFC Bank

Transaction Amount

NEFT Charges

Amounts up to Rs 10,000

Rs.2.25 + Applicable GST

Amounts Over Rs 10,000 and up to Rs 1 lakh

Rs.4.75 + Applicable GST

Benefits of using NEFT for fund transfer

There are many advantages to NEFT. Here are a few of these to consider:

This system allows one-way cross-border transfer of funds from India to Nepal. This is under the India-Nepal Remittance Facility Scheme.
With NEFT, you can easily transfer funds from one bank account to another in any branch.
This avoids the need for any physical device to transfer funds.
There is no need for any physical presence of the parties.
NEFT is easy, simple, and efficient.
Money can be transferred through NEFT even on holidays and weekends.
You can start internet banking from any location.
Transaction confirmation will be received through email and SMS notifications
Real time transactions of NEFT provide assurance to both the parties.

Who can use NEFT?

Benefits of NEFT Service Individuals, corporates and firms having an account in any bank can use NEFT service. An individual, corporate, and firm can transact through NEFT with another individual, firm, or corporation having an account in the same bank or any other bank.

Details required for funds through NEFT system

Following are the beneficiary details required for fund transfer through NEFT framework:

How to pay credit card bill using NEFT?

Step 1: Log in to your bank’s Internet Banking account

Step 2: The credit card must then be added as a beneficiary. You must be aware of your credit card’s IFSC code in order to do this.

Step 3: Continue by providing the credit card number along with any other necessary information.

Step 4: Once the credit card is registered as a payee, go to the ‘NEFT Fund Transfer’ option and transfer funds towards your credit card by entering the bill amount.

How to add credit card as payee/beneficiary for NEFT credit card bill payment?

Description

Process

Recipient Name

Recipient/Beneficiary name will be the same as printed on the credit card

Recipient account number

This will be the credit card number printed below the name

Bank name

Name of your bank

IFSC code

This will be the credit card number printed below the name

What is NEFT inward?

The RBI website describes the NEFT process as a payment system that allows one-to-one money transfer. Under the NEFT facility, you can transfer funds electronically from one bank branch to another. You can also make NEFT payment to any firm or corporate which has an account with any bank branch in India.
If you don't have a bank account, you can still deposit money using the NEFT option. These cash transfers will have a Rs 50,000 maximum cap per transaction.
Fund transfer requests in the NEFT system can be settled every half hour. Note that there are twenty-three half-hour settlement batches and these run from 8:00 AM to 7:00 PM every working day of the week (except the second and fourth Saturday of every month).
The recipient will receive the amount for the NEFT transaction within two business hours.