Customer Charges Levied by Bank for NEFT Transactions

What is NEFT?

NEFT, or National Electronic Funds Transfer, is an electronic payment system introduced by the Reserve Bank of India (RBI) in November 2005. It serves as a convenient and secure method for electronically transferring funds between bank accounts across India. Operating on a deferred net settlement (DNS) basis, NEFT processes transactions in batches at scheduled intervals throughout the day. This system enables seamless and efficient fund transfers, enhancing the overall banking experience for individuals and businesses alike....

How NEFT Work?

1. Sender logs in to their net banking account....

Features of NEFT

1. Round-the-Clock Availability: NEFT offers the convenience of 24×7 availability, allowing users to transfer funds at any time of the day or night. This gives people freedom and ease of access, so they can do business whenever it’s convenient for them, regardless of banking hours....

Advantages of NEFT

1. Available 24×7: NEFT operates round-the-clock, providing users with the flexibility to initiate fund transfers at any time, even outside traditional banking hours. This ensures convenience and accessibility for users, allowing them to conduct transactions according to their schedules....

How NEFT System Operate?

1. Initiation: The NEFT transaction begins when the senders initiate the transfer through Internet banking, mobile banking, or by visiting the bank branch. The sender provides the necessary details such as the beneficiary’s account number, IFSC code, and the amount to be transferred....

Who can use NEFT?

1. Individuals: NEFT can be used to send money to anyone with a bank account at a bank that is part of the NEFT network. NEFT makes it easy and safe for people to send and receive money for personal transactions, bill payments, and other financial needs....

How to Initiate NEFT Transaction?

1. Internet Banking: Users can initiate NEFT transactions conveniently through the bank’s internet banking portal. After logging in, they can go to the fund transfer section and select the NEFT option. They need to provide the beneficiary details, such as account number, IFSC code, and transfer amount, and confirm the transaction....

Information Required to Transfer Funds through NEFT

To initiate a NEFT transfer, the following information is required:...

NEFT Timings

NEFT, or National Electronic Funds Transfer, operates on a 24×7 basis, providing users with the flexibility to initiate transactions at any time, including holidays and weekends. The system settles transactions every half hour throughout the day and night. This means that transactions are grouped together and settled periodically, rather than processed individually in real-time. For example, if a transaction is initiated at any point during the day, it will be included in the next available batch for processing. These batches are scheduled at regular intervals, ensuring that transactions are processed efficiently and promptly. As a result, funds transferred through NEFT are typically credited to the beneficiary’s account within a short timeframe, making it a convenient option for users requiring timely fund transfers. The round-the-clock availability and batch-wise processing of transactions contribute to the accessibility and efficiency of the NEFT system, enabling seamless electronic fund transfers for individuals, businesses, and organizations across the country, at any time of the day or night....

NEFT Transfer Limit

While there is no specific limit set by the RBI, individual banks may impose their own limits based on their risk perception. the transfer limits for NEFT transactions can vary across different banks. Here’s a table illustrating the NEFT transfer limits for some major banks:...

Customer Charges Levied by Bank for NEFT Transactions

The charges levied by banks for outward NEFT transactions are capped by the RBI. The charges depend on the transaction amount,...

Difference between NEFT, UPI, and RTGS

Basis NEFT UPI RTGS Maximum Transfer Value There is no maximum limit imposed on the transfer value for NEFT, allowing users to transfer any amount UPI transactions are capped ₹2 lakh per transaction, providing a limit for individuals to transfer RTGS does not impose any maximum limit on the transfer value, enabling high-value transactions Minimum Transfer Value NEFT transactions can be initiated with a minimum transfer value of ₹1, facilitating small-value transfers UPI transactions have a minimum transfer value of ₹1, allowing users to transfer small amounts conveniently RTGS require a minimum transfer value of ₹2 lakh, making it suitable for high-value transfer Transfer Timing NEFT transactions are processed in batches at a half-hourly intervals, with funds typically credited within 30 minutes to 2 hours UPI transactions are immediate, with funds transferred instantly to the beneficiary’s account RTGS transactions are also immediate, providing real-time settlement of funds between accounts Payment Mode NEFT transactions can be initiated both online (through internet banking) and offline (at bank branches) UPI transactions are primarily conducted online mobile apps Similar to NEFT, RTGS transactions can be initiated both online and Offline Details Required Account number and IFSC Code VPA of beneficiary, QR Code, or Account number and IFSC Account number and IFSC Code Beneficiary Registration Beneficiary needs to be registered in advance to receive funds through NEFT transaction UPI transaction do not require beneficiary registration Beneficiary’s need to be registered in advance to receive funds through RTGS...

Frequently Asked Questions (FAQs)

1. What is NEFT?...