The full form of NEFT is National Electronic Funds Transfer.
With the digitalization in India, NEFT become popular in the area of fund transfer. One can able to transfer funds electronically from any bank to any individual.
You don’t need to visit bank to transfer your funds. NEFT allows you to make payments nation-wide.
In this article, you will learn different operations, benefits related to NEFT.
When any person wishes to transfer his/her money from their bank account to the bank account of other person, they can opt for NEFT. You don’t need to withdraw cash and submit it to the specific bank account.
- In NEFT, you can avail the benefit of transferring the funds from any bank account to any other person’s bank account irrespective of location.
- To have the benefits of NEFT service, the sender and receiver both must have NEFT-enabled bank account.
- You can easily get bank branches of NEFT-enabled on RBI’s website or by calling the bank you have bank account to confirm.
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Revised timing of NEFT is 24*7, 365 days from 15th December. Previous timing of NEFT was from 8:00 AM to 6:30 PM, from Monday to Friday i.e. only four days in a week.
Transaction through NEFT is initiated by automatic transaction with the help of Straight Through Processing (STP) modes by banks.
Steps involves in NEFT
You must follow the specific procedure to transfer funds successfully through NEFT as:
Step 1: Do login to your bank account with the help of your ID and Password.
Step 2: Click on to the NEFT fund transfer option.
Step 3: Enter some basic details of beneficiary such as name, bank account number and IFSC code.
Step 4: You can able to perform transaction through NEFT after adding the beneficiary successfully. Now, you need to enter the bank account number to send and click on the send option.
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Eligibility for transaction through NEFT
Those banks can perform NEFT transaction which are NEFT-enabled are included in the list of Reserve Bank of India. We have mentioned earlier that any firm/ organization or individual having bank account in NEFT-enabled bank can do NEFT transaction, 24*7, 365 days.
In case of, you don’t have any bank account, can also make payment through NEFT in the NEFT-enabled branch. You need to provide your address, e-mail ID, contact no, and other details to the bank. In this case, you can only transfer a maximum of Rs. 50,000.
Transfer through NEFT
You can transfer any amount you want through NEFT i.e. there is no limitation on the amount from Re 1 to any amount. The only limitation you may face is, in cash mode, funds can be transferred Rs. 50,000 at a time.
Different banks offer different timings and settlement period for a transaction. Generally, if you are transferring the funds from an account of bank to the same bank then it takes only few seconds. But if your transaction is between the different banks, it will take some longer time.
- No inward charge is applicable through NEFT that means recipients/beneficiaries can avail this service totally freely.
- No charges will be applied if you transfer via NEFT via internet/mobile banking in online platform.
- Amount of charges to be paid by remitters are as follows:
|Upto Rs. 10,000||Rs. 2.50|
|Rs 10,000 to Rs. 1 lakh||Rs. 5.00|
|Rs 1 lakh to Rs. 2 lakh||Rs. 15.00|
|More than 2 lakh||Rs. 25.00|
Need of NEFT
Apart from personal fund transfer, NEFT is used to perform certain operations such as payments of loan, EMIS, credit card dues and many more. Therefore, the service of NEFT is one of the useful product of RBI.
Benefits of NEFT
Once you have added the beneficiary, you just need to select the beneficiary from the prepared beneficiary list, type the amount and then click on the send button.
In the following points, we have given the benefits of a NEFT in our daily basis transaction.
- Both the remitter and recipients need not to be present physically during transaction.
- No need to use any instrument at any point of transaction to make it successful.
- If you have an authentic bank account, then you don’t need to visit bank.
- If it is done online, then any kind of physical error can be overcome.
- It is very easy to operate and can transfer funds within a very short period of time.
- You will be notified through e-mail and SMS as soon as the transaction is done successfully.
- You can use this service at any place that mean your location is not any factor to perform in this operation.
More Full Forms:
FAQs Regarding Full Form of NEFT
Q1. What is the lower and upper limit for NEFT?
Ans: For transaction through NEFT platform, nowhere it is mention the lower and upper limit. But, there are some banks like HDFC, sets their maximum transaction limit to Rs. 10 lakhs.
Q2. Can we avail the service of NEFT for 24*7?
Ans: Yes, including holidays, you can avail the service of NEFT for 24*7, 365 days.
Q3. Is it possible to avail NEFT service from NRE and NRO accounts?
Ans: Yes, you can avail NEFT service from NRE and NRO accounts as well with restrictions under Foreign Exchange Management Act 2000 (FEMA) and Wire Transfer Guidelines.
Q4. Can anyone initiate a NEFT transaction to withdraw/ get funds from any other accounts?
Ans: No, you don’t have the authority to perform such operations as it is a credit-push system. That means it can only be done by the sender/ remitter/ payer.