NEFT (National Electronic Funds Transfer) is a nationwide digital payment system that allows individuals, businesses, and banks to send money electronically from one bank account to another within India.
It is regulated by the Reserve Bank of India (RBI) and is widely used for transferring funds between banks in a secure and reliable manner.
Key Features of NEFT
| Feature | Details |
|---|---|
| Availability | 24×7, 365 days a year (including holidays) |
| Settlement | Half-hourly batches (usually settles in 30 mins) |
| Transfer Limit | No minimum; maximum varies by bank (commonly ₹10L/day) |
| Where to Use | Internet banking, mobile banking, or at the branch |
| Transfer Speed | Typically 30 minutes to 2 hours |
| Cost | Free for personal users in most banks |
What You Need to Make an NEFT Transfer
To send money via NEFT, you must have:
- The recipient’s full name
- Bank account number
- IFSC code of the recipient’s bank branch
- Type of account (e.g., savings or current)
If using online banking, you’ll need to add the recipient as a “beneficiary” and wait for activation (usually 30 minutes to 4 hours depending on the bank).
NEFT vs RTGS vs IMPS
| Feature | NEFT | RTGS | IMPS |
|---|---|---|---|
| Settlement | Batch (every 30 mins) | Real-time | Real-time |
| Speed | 30 mins–2 hours | Seconds–30 mins | Instant |
| Minimum Limit | No minimum | ₹2 lakh | ₹1–₹5 lakh |
| Best For | General transfers | High-value transfers | Instant personal payments |
| Available | 24×7 | 24×7 | 24×7 |
Where Can You Use NEFT?
NEFT can be used through:
- Online banking / mobile app of your bank
- Bank branches (fill NEFT form physically)
- UPI apps may also use NEFT as backend in some cases
Pro Tips
- Always double-check the IFSC code—wrong entries may lead to delays.
- Add beneficiaries early if you’re planning a large payment.
- NEFT is ideal for:
- Bill payments
- Freelance payouts
- School fees
- Rent or EMI transfers
- While most NEFT transfers are free for personal accounts, charges may apply for bulk/corporate transfers from current accounts.
FAQs
Is NEFT safe?
A. Yes—NEFT is encrypted and regulated by RBI, making it safe and reliable.
Can NEFT fail?
A. Yes, if the IFSC or account number is incorrect. The money usually reverses within 2–4 working days if rejected.
Can I cancel an NEFT transfer?
A. No. Once processed, NEFT transfers cannot be canceled. You must contact your bank if a wrong transfer was made.
How to track NEFT?
A. You can check your transaction status in:
Net banking “Transfer History”
Reference number (UTR) can be used if you call customer care
Final Summary
NEFT is a trusted, RBI-approved fund transfer system that’s ideal for day-to-day payments between banks. It’s safe, works 24/7, and is free for most users. With a simple IFSC + account number, you can send money anywhere in India—anytime.
