NEFT

National Electronics Fund Transfer or NEFT is an electronic fund transfer system used country-wide for sending money instantly from one bank account to another in a safe and hassle-free manner.

What is NEFT?

NEFT means National Electronic Fund Transfer. It is an online payment platform used nation-wide by most of the banks. NEFT banking allows instant and hassle-free transfer of funds from one bank account to another. It eliminates the need to visit banks for transferring funds as you can easily transfer funds online from anywhere.

All NEFT settlements are done in a batch-wise format. Using this system the money is sent to all NEFT-enabled banks in the country on an individual basis.

To begin NEFT transfer, you must have a bank IFSC Code along with other details like bank branch, bank account number, account holder’s name, etc.

Top Banks Offering NEFT Money Transfer Facility

BankLimitChargesTimings
SBIUp to Rs. 10 LakhsUp to Rs. 25 + Applicable GST8 am to 7 pm on all days except 2nd & 4th Saturday and Sunday & holidays
HDFCUp to Rs. 25 LakhsUp to Rs. 10 + Applicable GST8 am to 6:30 pm from Monday to Saturday
ICICI BankUp to to Rs. 20 Lakhs Up to Rs. 24.75 + Applicable GST8 a.m. to 6.30 p.m. from Monday to Saturday
Axis BankNo limitUp to Rs. 25 + Applicable GST24x7, 365 Days
Bank Of BarodaUp to Rs. 5 LakhsUp to Rs. 25 + Applicable GST9 a.m. to 6.15 p.m. on weekdays & 9.00 a.m. to 12.45 p.m. on Saturdays
Kotak BankUp to Rs. 10 LakhsUp to Rs. 40 + Applicable GST8:00 AM to 6:00 PM on weekdays & 8 AM to 12 PM on Saturdays
RBL BankUp to Rs. 6 LakhsUp to Rs. 50 + Applicable GSTRuns 24X7 in batches of 30 minutes
PNBUp to Rs. 5 CroresUp to Rs. 25 + Applicable GST8 am to 7 pm on weekdays and six settlements from 8 am to 1 pm on Saturdays

NEFT Timing

Earlier, the NEFT timing for transactions was between 8 a.m. And 6 p.m. from Monday till Friday and 8 a.m. to 12 p.m. on Saturdays for most banks was. However, since 16th December 2019, you can transfer money 24x7 via NEFT. Now you can also transfer money via NEFT on Sunday as well as holidays.

Additional Info: Also, check Axis Bank Net Banking service.

Fund Transfer Process of NEFT

The NEFT transfer process is mentioned below:

  • Login to your net banking account first. Register for it on your bank’s website if you do not have an account.
  • Add the beneficiary name as a payee by entering the following details about the beneficiary under the ‘Add New Payee’ section:
    • Account Number
    • Name
    • IFSC Code
    • Account Type
  • After adding the payee, choose NEFT as your mode of Fund Transfer.
  • Then select the account from which you want to transfer the money, the payee to whom you want to send money, enter the amount you want to transfer, and add remarks (optional).
  • Now click on the Submit button to make NEFT payment.

NEFT Transfer Limit

There is no specific cap on the NEFT minimum amount and maximum amount limit of NEFT transfer. You can transfer a minimum amount as low as Rs.1. For other fund transfer options like RTGS, there is a minimum transfer limit of Rs. 2 Lakhs. There is no maximum limit assigned by the RBI for NEFT transfer or transaction. However, the bank with which you hold your account may have a specified limit. For instance, the limit for NEFT SBI is up to Rs. 10 Lakhs. 

NEFT Transaction Charges

There are no charges on NEFT transactions done online through internet or mobile banking. However, processing fees are levied on NEFT transaction based on the amount that you transfer as mentioned below:

  • No charges for inward transactions at destination bank branches.
  • For outward transactions at originating bank branches:
Amount of NEFT TransferCharges
Up to Rs.10,000Up to Rs.2.50 + GST
Above Rs. 10,000 to Rs. 1 LakhUp to Rs.5 + GST
Above Rs. 1 Lakh and up to Rs. 2 LakhsUp to Rs.15 + GST
Above Rs. 2 LakhsUp to Rs.25 + GST

Difference between NEFT, RTGS, and UPI

Below is the difference between RTGS and NEFT and UPI:

UPI: UPI or Unified Payment Interface Unified Payments Interface is an instant real-time payment system facilitating inter-bank peer-to-peer and person-to-merchant transactions. The most important benefit of UPI is that you are not required to feed the bank account details for transferring the money. There are many UPI platforms available in India, including WhatsApp, Google Tez, Phone Pe, BHIM app, and so on. You can use the UPI for various purposes such as shopping, money transfer to friends, merchants, etc. To get the UPI service, you need to have access to the bank account, mobile number which is linked with the bank account, and debit card for re-setting MPIN.

NEFT: NEFT or National Electronic Fund Transfer is an electronic funds transfer system maintained by the Reserve Bank of India. Unlike UPI, There is no fixed limit on how much can be transferred through NEFT. The charges levied on NEFT are minimal, up to Rs. 25, plus applicable taxes.

RTGS: RTGS or Real Time Gross Settlement is an online fund transfer mode which is based on the gross settlement where the transactions are settled after an instruction is issued to do so. In RTGS, the minimum amount of transaction should be Rs. 2 Lakhs. Unlike the NEFT, these transactions can be done anytime. Charges for RTGS are capped at Rs. 55, plus applicable taxes. The main diff RTGS and NEFT are settlement timings. 

Credit Card Payment Through NEFT

Below are the steps to make your credit card bill payment through NEFT:

  • Login to your net banking account.
  • Then go to the 'add beneficiary' section.
  • Choose the bank from the given list of banks in the menu.
  • Choose the city and branch. 
  • Add the correct IFSC code.
  • Now provide the 16 digit credit card number to make the payment.

NEFT FAQs

Is there a limit on fund transfers?

No, there is no specific limit set by RBI on fund transfers through NEFT.

Are there any charges for NEFT transactions?

Yes, the charges for NEFT transactions can be up to Rs. 25 plus applicable taxes based on the bank and amount of transfer.

Are there provisions for international NEFT transactions?

Yes, you can use NEFT for transferring funds from/to NRE and NRO accounts in India. However, this is subject to the adherence of the provisions of FEMA or the Foreign Exchange Management Act, 2000 and Wire Transfer Guidelines.

Which is better: NEFT or RTGS?

There is not much difference between NEFT and RTGS. If you want to make a transaction above Rs. 2 Lakhs, RTGS is faster than NEFT. However, for payments of lower amounts, NEFT is more efficient than RTGS.

Can I make a part pre-payment on my Home Loan Account through NEFT with ICICI Bank?

Yes, ICICI Bank accepts part-payment of home loan through NEFT.

What information is required to do an NEFT transaction?

  • Beneficiary bank name.
  • Amount to be remitted.
  • Beneficiary name.
  • Information to be received.
  • Mobile number of the remitter.

What are the transaction limits for NEFT?

There is no transaction limit on NEFT. However, each bank may have its own specific limit. For instance the maximum NEFT limit per day at HDFC is Rs. 25 Lakhs.

What are the channels through which I can initiate an NEFT fund transfer?

NEFT transfers can be done 24x7 through Mobile Banking, Retail Internet Banking, and Corporate Internet Banking.

What are the advantages of using NEFT system?

  • NEFT is an economical and secure platform for money transfer.
  • You don’t need to use a cheque or a demand draft for money transfer.
  • No need to visit the bank branch.
  • Funds transfer can be done instantly online.
  • It is convenient to use.