NEFT (National Electronic Funds Transfer) is one of the most widely used electronic money transfer systems in India. It allows individuals and businesses to send money from one bank account to another across the country, safely and at low cost. Here is a clear guide to how NEFT works, its limits, timings, and when to use it.<\/p>\n
NEFT stands for National Electronic Funds Transfer. It is a payment system operated by the Reserve Bank of India that enables one-to-one fund transfers between bank accounts. Transactions are settled in batches and processed throughout the day.<\/p>\n
NEFT is available to account holders of any bank that is part of the NEFT network. As of now, virtually all scheduled commercial banks, cooperative banks, and regional rural banks in India participate in NEFT.<\/p>\n
1. The sender initiates a NEFT transfer through internet banking, mobile banking, or at a bank branch.
\n2. The transaction enters the NEFT system.
\n3. The RBI sorts and batches the transactions.
\n4. Batches are settled in hourly cycles throughout the day.
\n5. The recipient’s account is credited after the batch is processed.<\/p>\n
Since December 2019, NEFT operates 24×7, 365 days a year, including Sundays and public holidays. Earlier, it operated only on working days during specific hours.<\/p>\n
– **Minimum:** Rs. 1 (no minimum limit in practice, though some banks may set their own minimum).
\n– **Maximum:** No upper limit for NEFT. However, individual banks may set internal limits based on account type. For large transfers, RTGS may be more appropriate.<\/p>\n
As per RBI guidelines, banks cannot charge customers for inward NEFT transactions (money received). For outward NEFT (money sent), charges are minimal:<\/p>\n
– Up to Rs. 10,000: Rs. 2.5 per transaction.
\n– Rs. 10,001 to Rs. 1 lakh: Rs. 5 per transaction.
\n– Rs. 1 lakh to Rs. 2 lakhs: Rs. 15 per transaction.
\n– Above Rs. 2 lakhs: Rs. 25 per transaction.<\/p>\n