NEFT, National Electronic Funds Transfer is a way to transfer funds where you can electronically transfer money from one bank account to another. Users can transfer funds to other bank account holders in India using NEFT. It allows individuals to transfer money from their bank account to any other bank account in India. It is available for amounts as low as Rs 1 and there is no cap on the maximum number of transactions.
The main advantage of NEFT is that it provides instant and quick transfer of funds as compared to traditional methods like cheques or Demand Drafts (DDs). Moreover, it is a very safe and secure way to send money through net banking. In addition, there is no need to carry cash while making payments through NEFT.
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Can you use NEFT anytime?
Initially, your fund transfer could get an clearance only in the following two timeslots:
- Monday to Friday (Weekdays): Between 8am and 7 Pm
- Saturday (not Sundays): 8 am to 12PM
However, in December 2019, RBI made NEFT payments to be available for all days of the week and any time of the day. This move by RBI was primarily motivated by a desire to promote digital transactions in India and to allow global integration of the Indian and the international markets
So no users can use NEFT any time. Each time a request is initiated, the request is queued and an entire queue is cleared every hour.
Is there a transaction limit in NEFT?
There are no minimum or maximum transaction limits with NEFT. You can start transferring from Re1 and send as much as you need to. However, few banks do have their daily transaction limits. So you might want to check with your bank before you start transacting the heavy amounts.
Are there any additional charges on NEFT?
While there are no receiving charges there are outward charges applicable depending on the transfer amount
How to transfer money via NEFT?
Step1: Visit your bank home page and login into your account
Step2: On the home screen, the select Fund transfer option
Step 3: On the fund transfer page select the NEFT option instead of IMPS
Step 4: From the list of beneficiaries select the person to transfer the money
Step 5: You can also add a new beneficiary by selecting the Add beneficiary option and entering the following details:
- Account number
- Branch name
- Type of account
Step 6: Then select the confirm button
Step 7: After that enter the 4 digit OTP number that you receive on your registered mobile number
What are the benefits of NEFT?
Some of the most crucial benefits of NEFT include:
- The platform is very secure hence you don’t need to worry about your accounts security or for the security of your money
- It has lessened the dependence on demand draft and a cheque for transferring money
- You can initiate fund transfer online from the comfort of your home
- It can be used for transfer varying amounts of funds economically since there are no additional charges applicable
- You can use NEFT to pay for everything from challan 280 to buying shoes online. Hence it is one fix for many different types of problems.