What is NEFT - Full Form, Meaning , Timings and How to Transfer Money
If you are into online transactions, then you must have heard of NEFT. This article is for you if you don't know what NEFT is. In this article, we will discuss what NEFT is and the prerequisite knowledge you need to carry out NEFT transactions.
Further, we will be talking about the NEFT timings, its charges, and who can conduct an NEFT transaction. Lastly, we will be talking about how to go about the process of NEFT transfer and the transfer limit under NEFT.
What Is NEFT?
NEFT's full form in banking is National Electronic Fund Transfer. It enables digital one-to-one bank transfers between people, groups, and businesses. If both of your bank accounts are NEFT-enabled, you can effortlessly deposit money into your recipient's bank account regardless if you and the receiver belong to separate banks.
The good thing is that it would be difficult to find a bank account that does not support NEFT in today's digitally-driven world. There is no minimum or maximum amount for transactions with NEFT. However, If you send money within India in person with cash, there is a limit of ₹50,000.
Benefits Of Using NEFT For Fund Transfer
Numerous advantages come with NEFT. Let's examine some of these:
- The method enables the one-way transfer of payments across international borders from India to Nepal. This falls under the scheme for the Indo-Nepal Remittance Facility.
- It gets rid of the requirement for a physical tool to transmit money.
- Even on weekends and holidays, money can be transferred using NEFT.
- You can start an internet banking session from anywhere in the world.
Prerequisite Knowledge For NEFT Transactions
In the past, when someone needed to pay someone, they were first required to withdraw money, which they had to either pay with checks or cash. However, through the NEFT procedure, a person can move funds straight from their bank account to another person's bank account.
After NEFT meaning, knowing this prerequisite knowledge for NEFT transactions is necessary:
- Money can be transferred through NEFT from any bank account at any bank branch to any other bank account in any location.
- You can visit the RBI's website, where the list is listed, to see if your bank is NEFT enabled, or you can confirm this by contacting your bank's customer care.
- The sender's and receiver's accounts must be NEFT enabled to complete the NEFT process.
- The NEFT mechanism encourages the one-way cross-border movement of payments from India to Nepal. This provision falls under the scheme for the Indo-Nepal Remittance Facility.
What Are The NEFT Transfer Timings?
The NEFT transfer service is accessible to users 24 hours a day, seven days a week, as determined by the authorities after considering the system's popularity and usage patterns.
Customers can purchase this every day of the year, including holidays. Few people know that NEFT transactions beyond banking hours in India are automated transactions initiated by banks using the "Straight Through Processing (STP)" mechanisms.
What Charges Are Imposed While Using NEFT?
Many individuals think there are many fees associated with the NEFT facility. However, this is untrue. There are no fees associated with the inward transactions meaning neither the recipients nor the beneficiaries are charged. However, there are the following fees that apply when registering:
- ₹ 2.50 for transfers up to ₹ 10,000
- ₹ 5 for transfers of ₹ 10,000 to ₹ 1 Lakh
- ₹ 15 for transfers of ₹ 1 Lakh to ₹ 2 Lakh
- ₹ 25 for transfers of more than ₹ 2 Lakh
Many people also think NEFT's services are restricted to personal fund transfers. That's not quite the case, though. The use of NEFT extends beyond simple money transfers between bank accounts. Using the NEFT option, you could pay your loan, credit card, and EMI balances.
Who Can Make A NEFT Transaction?
The Reserve Bank of India publishes the authorized bank branches that support NEFT. The authorized list indicates that only these bank branches can be used to conduct NEFT transactions.
Any person, business, or corporation with a bank account with a participating branch can use NEFT at any time, as has already been mentioned.
However, suppose someone does have a bank account. In that case, they can also deposit cash at a branch that supports NEFT as long as they supply the bank with all necessary information, including their address, phone number, email id, and other details. Such NEFT transfers are restricted to a single ₹ 50,000 limit.
Details Required For Funds Transaction Through NEFT System
The beneficiary information needed for fund transfers using the NEFT framework is- name, account number and type, bank name and branch name and branch's IFSC code.
How To Go About The Process Of NEFT Transfer?
Step 1: Open your bank's internet banking website.
Step 2: Select the "Fund Transfer" option from the home screen.
Step 3: On the page for transferring funds, select "NEFT."
Step 4: Pick the recipient from the list to whom you want to send money.
Step 5: Click the "Add Beneficiary" option on the page if you want to add a new beneficiary. Enter information about the account, including the account number, IFSC, name, bank branch, and type.
Step 6: Check and confirm the information you entered.
Step 7: Enter the 4-digit OTP you received on the registered mobile number to verify the beneficiary addition.
Step 8: The registered beneficiary will be prepared for fund transfers after the allotted time has passed.
Step 9: To begin the transaction, pick the recipient, choose the bank account from which money must be transferred, enter the desired amount, and press the "Confirm" button.
How to Transfer Funds through NEFT Offline
You must fill out an NEFT form in your bank's branch in order to complete the offline NEFT process. The form is filled out completely before being given to the banking representative. Let's go over the specifics in more detail:
- When conducting an offline NEFT transaction, the sender must fill out a form with both their information and the beneficiary's information.
- Bank name, account number, account name, branch name, IFSC code, and account type for both parties are necessary information.
- When starting the transaction, the sender must present his or her PAN card if the transaction is more than ₹ 50,000.
How To Track NEFT Transaction Status
By contacting the NEFT Customer Facilitation Center of their respective banks, the sender and the beneficiary can keep track of the progress of the NEFT transaction.
On the website of their particular bank, the customer can obtain information about the NEFT CFC of that institution.
The consumer must give the relevant bank a little information about the transaction, such as the Unique Transaction Reference (UTR), date of the transaction, number/transaction reference number, etc., if they wish to follow it quickly.
How to Pay Credit Card Bill Using NEFT
You can follow the following steps to your pay credit card bill using NEFT:
Step 1: Access your bank's online banking system.
Step 2: The second step is adding the credit card as a beneficiary. You must be aware of your credit card's IFSC code to do this.
Step 3: Continue to input the account number, other necessary information, and the credit card number.
Step 4: Select "NEFT Funds Transfer" and make a fund transfer to your credit card by inputting the bill amount once the credit card has been set up as a payee.
What Is The Transfer Limit Under NEFT?
NEFT transfers of funds are not subject to any higher or lower limits. You can start with as little as one rupee and work up to any amount you like. However, there is only one restriction: the maximum amount for a single cash transaction is ₹ 50,000. Different banks, though, have their particular set of guidelines.
Therefore, each transaction's timings and settlement period may vary based on the individual banks. The procedure may be finished in a fraction of a second when money is transferred to the same bank account. If the bank accounts are different, the same transaction might take a few minutes.
NEFT enters the picture not as a facility but as a requirement in today's society, where people seldom have time to make things happen through their presence due to how busy life has become.
NEFT has become a crucial component of the digital world by enabling anything from paying online purchases to repaying large loans and EMIs.