NEFT Charges: NEFT refers to National Electronic Fund Transfer. The account holders can transfer funds from one bank branch to another or to another bank account. With a click of your fingertips, now you can access your bank statement or pay your mobile bill, and can even recharge your DTH (Direct To Home) connection.
This is possible due to online banking facility offered by the core banking system. Online banking includes NEFT as one of the methods for funds transfer, which will be discussed in this article.
Content in this Article
NEFT Charges, NEFT Timing, What is NEFT, NEFT Full Form
NEFT Charges
Please Note New RBI news on 1st January 2020 – There will be no charge from January 1, 2020 on National Electronic Funds Transfer (NEFT) used for online fund transfer (Net Banking). The Reserve Bank of India (RBI) has given this exemption for account holders with savings bank accounts.. This means that payments via NEFT would become either free or charges would be drastically reduced.
SO as per RBI– No Charges on NEFT Transaction by Internet Banking from 1st January 2020.
What is NEFT?
NEFT refers to National Electronic Fund Transfer. The account holders can transfer funds from one bank branch to another or to another bank account. NEFT transactions are accumulated together in batches and are executed in such batches. Hence as opposed to RTGS, NEFT transactions of various account holders are included in batches and processed in hourly time slots.
Process of NEFT
NEFT procedure is similar to RTGS, except for the processing of transactions. The Process flow of NEFT is explained as below.
Creation of beneficiary
The account holder will be prompted to create a beneficiary for making NEFT payment. Details such as account holders name, address, account number, IFSC code etc. You may receive the sms alert or mail confirming that you have applied for creation of beneficiary and that it will be activated once the bank approves the same.
Approval by the bank
As per time limit set by the bank, it may approve or reject the beneficiary creation. You will receive sms alert or mail saying that the beneficiary has been activated (if it is approved). Once you receive the activation alert, you can go ahead for making NEFT payment.
NEFT transfer
If you initiate your transaction within prescribed time slots, then your transactions will be clubbed in the batches and will be executed in hourly time slots.
Points to be kept in mind before making NEFT
- Please fill in vital details like beneficiary’s account number and IFSC code correctly. Invalid or wrong account number or IFSC code will just throw back your transaction or in worst cases, the funds will be directed to the wrong accounts.
- Please opt for OTP as your verification method for beneficiary creation. This is a very secure and safe way.
- Update your mobile numbers to get any transaction information on the go. This will reduce the chances of fraud or wrong debits from the accounts.
- NEFT processes the transactions in hourly batches, hence it is important to transfer funds within prescribed time limits, which are mentioned as below
from December 16 , NEFT facility for online transactions has started getting 24 hours seven days a week. According to a statement from the Reserve Bank, transactions under NEFT can be done every day including holidays. With this, you can transfer online up to Rs 2 lakhs at a time.
So Now you can make NEFT Transfer Anytime
If you happen to miss one settlement cycle, then you have no other option than to wait for another one.
- NEFT does not have upper cap or a minimum cap on the amount of funds to be transferred. However, the maximum amount per transaction is Rs. 50000. A Similar restriction is applicable for transfer to Nepal.
- Charges for the NEFT inward transaction is nil whereas, for outward transaction refer below table.
CONCLUSION
You can always resort to NEFT transactions for transfer of funds to account at another bank branch or to another bank accounts or to another person holding the account in same or different bank. Only thing to remember is proper inputs and adherence to time limits will speed up your NEFT.
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