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.
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.
|SBI||Up to Rs. 10 Lakhs||Up to Rs. 25 + Applicable GST||8 am to 7 pm on all days except 2nd & 4th Saturday and Sunday & holidays|
|HDFC||Up to Rs. 25 Lakhs||Up to Rs. 10 + Applicable GST||8 am to 6:30 pm from Monday to Saturday|
|ICICI Bank||Up to to Rs. 20 Lakhs||Up to Rs. 24.75 + Applicable GST||8 a.m. to 6.30 p.m. from Monday to Saturday|
|Axis Bank||No limit||Up to Rs. 25 + Applicable GST||24x7, 365 Days|
|Bank Of Baroda||Up to Rs. 5 Lakhs||Up to Rs. 25 + Applicable GST||9 a.m. to 6.15 p.m. on weekdays & 9.00 a.m. to 12.45 p.m. on Saturdays|
|Kotak Bank||Up to Rs. 10 Lakhs||Up to Rs. 40 + Applicable GST||8:00 AM to 6:00 PM on weekdays & 8 AM to 12 PM on Saturdays|
|RBL Bank||Up to Rs. 6 Lakhs||Up to Rs. 50 + Applicable GST||Runs 24X7 in batches of 30 minutes|
|PNB||Up to Rs. 5 Crores||Up to Rs. 25 + Applicable GST||8 am to 7 pm on weekdays and six settlements from 8 am to 1 pm on Saturdays|
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.
The NEFT transfer process is mentioned below:
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.
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:
|Amount of NEFT Transfer||Charges|
|Up to Rs.10,000||Up to Rs.2.50 + GST|
|Above Rs. 10,000 to Rs. 1 Lakh||Up to Rs.5 + GST|
|Above Rs. 1 Lakh and up to Rs. 2 Lakhs||Up to Rs.15 + GST|
|Above Rs. 2 Lakhs||Up to Rs.25 + GST|
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.
Below are the steps to make your credit card bill payment through NEFT:
No, there is no specific limit set by RBI on fund transfers through NEFT.
Yes, the charges for NEFT transactions can be up to Rs. 25 plus applicable taxes based on the bank and amount of transfer.
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.
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.
Yes, ICICI Bank accepts part-payment of home loan through 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.
NEFT transfers can be done 24x7 through Mobile Banking, Retail Internet Banking, and Corporate Internet Banking.