What is NEFT?

by Jeremy

National Electronic Fund Transfer (NEFT) is an electronic fund transfer system maintained by the Reserve Bank of India (RBI). It was founded and supported in November 2005 by the Institute for Development and Research in Banking Technology (IDRBT). NEFT allows bank customers in India to transfer funds between any two NEFT-enabled bank accounts on any basis. This is done through electronic messages.

What is NEFT?

Unlike real-time gross settlement (RTGS), fund transfers through the NEFT system do not occur on a real-time basis. NEFT transfers funds in half-hour batches with 23 days, between 8:00, am and 6:30 pm on weekdays. There is no settlement on the second and fourth days of the month, Sundays, or public holidays.

Transaction Limits

  • Minimum amount: Rs 1
  • Maximum amount: no limit

Settlement Mechanism: Batch

Transfer Speed: 2 hours (subject to cut-off timing and batch)

Payment Option: Offline (Bank Branch) and Online (NetBanking)

Service Availability:

Weekdays: 12 batches (8:00 a.m. – 6:30 p.m.)

Saturday: 6 batches (8:00 a.m. – 1:00 p.m.)

Sunday Bank Holiday: unavailable

Transfer Charges:

  • Rs.10,000 तक – Rs.2.50
  • Rs.10,000 to Rs.1 Lakh – Rs.5
  • 1 Lakh to Rs.2 Lakh – Rs. 15
  • Rs.2 Lakh to Rs.5 Lakh – Rs.25
  • Rs.5 Lakh to Rs.10 Lakh – Rs. 50

National Electronic Fund Transfer (NEFT) is a nationwide payment system that allows the transfer of funds from one bank account to another bank account. With the increasing focus on online banking, NEFT has become one of the most popular fund transfer methods. Since it can transfer money electronically from any bank branch to an individual, it has eliminated the need to visit the bank branch to transfer funds.

What is the NEFT process? (What is NEFT Process?)

 

If a person wants to transfer money from his bank account to another person’s bank account, he can say that he can do it through the NEFT process and not in place of withdrawing money and then it in cash Or will pay by writing a check. The main advantage of NEFT is that it can transfer funds from any branch account to any other bank account located at any place. The only condition is that both the sender and receiver branches must be NEFT-enabled. You can see the list of NEFT-enabled bank branches on the RBI website or call your bank’s customer service to confirm the same.

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