Definition: The NEFT stands for National Electronic Funds Transfer. It is a prominent electronic fund transfer system wherein the money can be transferred to any account in one bank from any other bank account.
This system was started in India in 2005, that allowed the individuals, companies, firms and corporate to transfer the funds from any one location to anywhere in India without actually going in person.
It is the most suitable mode of online payment which is available at a cheaper rate and the settlement time is quite less as compared to other modes of payment. RBI has introduced this system to make the online transactions of small value at a much reasonable rate.
How to Transfer Money using NEFT
You need to have an access to the “Internet Banking” facility linked to your account in order to make a NEFT transaction.
The following details are necessary to carry out the transaction:-
- Name of the Account Holder (to whom money is to be transferred)
- Account Number
- Bank Branch IFSC Code
- Account Type – Savings or Current (in some banks only)
- Address (branch of the bank)
- Maximum limit of the money that can be transferred
After filling these details online, the beneficiary account will get added to whom the fund is to be transferred, and then you can start transferring the funds to the beneficiary’s account.
Minimum and Maximum Limit in NEFT
Currently, there is no maximum and minimum limit of money, that you can transfer through NEFT, in fact even Re 1 can be transferred using this facility. There are no charges for the inward payments but, however, some minimal charges have to be paid for the outward payments.
Charges for NEFT
For transactions up to Rs 10,000: Rs 2.50 (+ Service Tax)
For transactions between Rs 10,000 to Rs 1 lac: Rs 5 (+ Service Tax)
For transactions between Rs 1 lac and Rs 2 lac: Rs 15 (+ Service Tax)
For transactions above Rs 2 lac: Rs 25 (+ Service Tax)
What are the operating hours of NEFT?
(Monday to Friday) 8:00 AM to 6:30 PM
Saturdays 8:00 AM to 12:30 PM
Top 10 Banks that provide the facility of NEFT are:
- State Bank of India
- ICICI Bank
- Punjab National Bank
- Bank of Baroda
- Union Bank
- HDFC Bank
- Canara Bank
- IDBI Bank
- Axis Bank
- Union Bank of India
This shows that both the public banks and private banks offer NEFT services to its account holders.