What is NEFT: Many of you may have used NEFT earlier to send money, but do you have the right information about what NEFT is? Because the rules of the bank change day by day, it is very important to have updated information in all these subjects. Ever since online banking or internet banking has come, since then people have gone to the banks in a way, they now do all their work sitting at home. This does not waste much of their time and they work smoothly.
There are three main ways of online fund transfer, namely NEFT, RTGS, & IMPS. Today we will get detailed information about NEFT. So if we talk about NEFT, then it is one such means of sending money online, through which we can easily send or receive money online from one account to another. So today I thought, why don’t you guys also get complete information about what NEFT is, how it works and what are our benefits. Then without delay let’s start and know about what NEFT is.
What is NEFT ?
NEFT has the full form of National Electronics Fund Transfer. It is a nationwide electronic fund transfer system whereby money is sent and received easily from one bank account to another bank account. All NEFT settlements are handled in a batch-wise format. In this, money is sent through this system to all NEFT-enabled banks all over India on an individual basis. Before starting any NEFT transfer, it is very important for the bank to have an IFSC code, along with with it other details such as bank account number, bank branch, account holder name are also very important.
The system of fund transfer is operated by RBI (RBI). Which started in 2005. NEFT provides this facility to the bank’s customers in India, so that the bank’s customer can very easily transfer his capital to another NEFT enabled bank account. It is also very safe.
Fund transfers through the NEFT system don’t happen on a real-time basis but a half-hour batch with 23 settlements occurring on the primary, third and fifth Saturdays of the NEFT week between 8:00 am and 7:30 pm ( batch) to transfer money. aside from this, there’s no settlement on the second and fourth Saturday of the month, on Sunday or maybe on public holidays.
The facility of NEFT has especially wiped out two types, one is that the offline mode is completed in branches of banks and therefore the other is Online mode which is out there to customers by online banking and wiped out batches. thanks to the time saving and straightforward process through NEFT, it’s very fashionable because its transactions are often done very easily through online banking. If seen, NEFT is slightly different from other measures like RTGS and IMPS. Where your money sent to RTGS and IMPS is instantly credited to the checking account of the person ahead. within the NEFT, your money is received by the bank within the time-table set by the bank.
Step By Step Guide NEFT Transfer Procedure
Online Procedure for NEFT:
Follow the steps given below to transfer funds through online
Step 1: First log in to your net banking account. If you are doing not have a net banking account, then you’ll also register it through your bank’s website.
Step 2: then, you’ve got to feature beneficiary consistent with a payee. Here beneficiary means to whom you would like to transfer money. And to try to to this, you’ll even have to fill some details of Beneficiary within the ‘Add New Payee’ section, which is:
- Account Number.
- IFSC Code.
- Account Type.
Step 3: Once the payee is added, then you’ve got to settle on NEFT consistent with the fund transfer mode.
Step 4: Now you’ve got to pick an account where you’ve got to transfer money, here you’ve got to pick payee, then enter amount as you would like to transfer then add comments (optional).
Step 5: Then click on submit.
Offline Procedure for NEFT:
Step 1: attend the bank first.
Step 2: Fill the NEFT / RTGS form there. Then provide the subsequent details about your beneficiary therein form:
- Account Number.
- Bank Name.
- IFSC Code.
- Account Type.
- Account Number.
- Amount the maximum amount as you’ve got to transfer.
Step 3: then submit your filled form in order that they will further authorize to transfer the cash .
How does NEFT Work?
Here I have tried to explain to you the generic process of NEFT transfer, but these specifics can vary in different banks, yet this process is almost the same.
- As I have already told you how you have to fill the form in details through online or offline mode, you have to provide complete information about the beneficiary. With this, how the bank authorizes it and processes it further.
- After this, your bank issues a message then sends it to their NEFT Service Center.
- NEFT forwards this message from your bank to NEFT Clearing Center which is operated by National Clearing Cell and is a part of Reserve Bank of India in Mumbai and includes it next available. branch of transaction.
- After this NEFT Clearing Center sorts all the fund transfer transactions according to its banks and decorates those entries in such a way that the bank on which your money is going to be sorted very easily. NEFT Service Center then receives messages where they get all the entries sorted, along with this they also get messages about money from NEFT Clearing Center, where they are instructed to send funds to the receiver’s account.
NEFT Transfer Fees & Charges
The thing to notice here is that the recipient bank doesn’t charge you any fees for the NEFT transaction. except for a sender, sending bank charges them for NEFT Transaction. you’ll get the below information about what proportion they charge.
|Transaction Amount||NEFT Charges|
|Amounts Rs 10000 up to||Rs 2.50 + Applicable GST|
|Amounts above Rs 10000 and up to Rs 1 lakh up to||Rs 5 + Applicable GST|
|Amounts above Rs 1 lakh and up to Rs 2 lakh up to||Rs 15 + Applicable GST|
|Amounts above Rs 2 lakh and up to Rs 5 lakh up to||Rs 25 + Applicable GST|
|Amounts above Rs 5 lakh and up to Rs 10 lakh up to||Rs 25 + Applicable GST|
Note : – These charges vary from time to time. Therefore, consult your bank before sending NEFT.
Who can transfer funds through NEFT?
Any Firm, Individual, Corporation can use NEFT to transfer funds from one checking account to a different checking account but the thing to notice is that they ought to have a checking account therein Bank Branch and NEFT therein Bank Branch Facility should even be Enable / Available.
Apart from this, also know that it’s not compulsory to possess a checking account . If someone doesn’t have a checking account within the Bank Branch and still if he wants to transfer funds through NEFT, then fund transfer are often done by filling the NEFT Instruction Slip. But to transfer funds during this manner through NEFT, only Amount up to Rs 50,0000 are often transferred during a Transaction.
Who can receive funds through NEFT?
These individuals, Firm, Corporation who have a checking account within the Bank Branch, then they will all receive the funds sent by NEFT. except for this, it’s mandatory for the Beneficiary customer to possess a checking account within the bank branch during which NEFT facility is enabled / available.
What are the benefits of NEFT
- Through NEFT, any Firm, Individual, Corporation, etc. can easily send money from one account to a different.
- Here the Beneficiary Customer (to whom money is sent) doesn’t get to attend the Bank Branch to receive funds nor do any paper formalities.
- The fees in NEFT are very low.
- Fund transfer is often done from anywhere and anytime using Internet Banking. they’re very safe and secure. And if for a few reasons your Transaction isn’t complete, then you are doing not need to panic because in such a situation your money isn’t lost anywhere but goes back to the account sent.
- It is more useful for low-value transactions.
- Here the Receiver doesn’t need to pay any additional cost.
- Each Batch here is of 1 hour.
Top Banks that provide NEFT facility
- Indian Overseas Bank (IOB) NEFT
- Syndicate Bank NEFT
- ICICI NEFT
- SBI NEFT
- Punjab National Bank (PNB) NEFT
- Union Bank of India NEFT
- HDFC NEFT
- Axis Bank NEFT
- Central Bank of India NEFT
- Bank of Baroda NEFT