NEFT: Transaction Time, Charges & Transfer Limit?

What is NEFT in Banking?

The full form of NEFT is National Electronic Funds Transfer, is an electronic payment system developed by the Reserve Bank of India (RBI) to facilitate the transfer of funds between banks in India. It is a secure, economical, and efficient method for transferring money without visiting a bank branch. To use NEFT, log in to your online banking account, select the NEFT option, and enter the beneficiary’s name, account number, bank name, branch, and IFSC code. The transfer is processed in hourly batches and credited to the beneficiary's account.

How does NEFT work?
 

When electronic transactions are concerned, NEFT has cemented its significance. Earlier, NEFT transfers were only possible during specific hours on working days. So, if a bank had ten customers executing NEFT transfers of varied amounts, all these transactions would culminate concurrently when the bank finally sent out the funds. While the sender's account would be debited immediately upon initiating an NEFT transfer, the receiver would only see the credit after a certain interval.

Thanks to relentless enhancements driven by the RBI, NEFT now operates with a swifter clearance cycle, settling payments every hour, and the service is available 24x7. With other immediate transfer modalities available, one might wonder about the relevance and prominence of NEFT. Let's delve deeper -

Cost-efficiency
 

NEFT outshines many electronic transfer mediums in terms of cost. For businesses with high transactional volumes, NEFT proves economical. Fees as low as Rs.2.5 are levied for amounts up to Rs 10,000, and at the higher end, a maximum of Rs 25 is charged for transfers beyond Rs 2 lakhs. It's noteworthy that these fees are inclusive of GST.

Flexibility in transaction limits
 

For sizable transactions, especially those beyond Rs 2 lakh, the NEFT system is unparalleled. While many digital transaction methods cap the transfer amount, NEFT is devoid of such constraints, accommodating transfers without any upper ceiling. Simultaneously, its lack of a lower limit ensures its utility for all.

Prompt and secure processing
 

NEFT's evolution has reduced its clearing times from once daily to hourly. This acceleration ensures transactions are as expedient as other methods. Plus, the robust architecture of NEFT, anchored on the RBI's secure platform, acts as a formidable deterrent against potential fraud.

So, NEFT, or National Electronic Funds Transfer is a vital pillar of financial infrastructure, bridging banks and facilitating transactions for millions. When one initiates an NEFT transfer, they're leveraging a time-tested, RBI-approved system that ensures money moves safely and promptly between accounts. Amidst a financial ecosystem teeming with numerous transfer methods, NEFT distinguishes itself for its blend of reliability, affordability, and flexibility. As digital banking continues to progress, the pivotal role of systems like NEFT remains undiminished, representing a seamless fusion of traditional banking and modern digital convenience.

How to do NEFT transfers?
 

NEFT operations can be conducted both via online and traditional methods. Online NEFT transfers utilise internet and mobile banking channels. When utilising the Metra Trust’s mobile app, users can pick the NEFT transfer option to move their money. Metra Trust ensures that the NEFT transaction process is smooth, streamlining the fund movement effectively.

On the other hand, if one prefers tangible methods, one can opt for offline NEFT. This would entail a visit to the bank's physical branch to undergo the NEFT process. Additionally, some ATMs and financial kiosks extend support for NEFT-based operations.

While newer payment methods have come up in this digital age, enhancing transactional flexibility, NEFT stands its ground as the most trusted mode, especially for significant transactions surpassing Rs 2 lakh.

NEFT Transfer charges and fees.
 

NEFT transfer includes a nominal charge from the sender for transferring money. The beneficiary, on the other hand, doesn’t need to pay any fee. However, no fee is applicable on the fund transfer initiated via online banking or mobile banking. The sender needs to pay the following charges depending on the amount they transfer.

The charges may vary from bank to bank, and you must check your bank rates before proceeding. Metra Trust offers Zero-Fee Banking* for your convenience and, you don’t need to pay fund transfer charges whatsoever. You can enjoy zero fees on 28 commonly used savings account services, including fund transfers, and save more on daily banking. 

Benefits of using NEFT for fund transfers
 

Since its inception, the NEFT fund transfer method has developed greatly and offers a secure way to transfer money online. It is a quick and reliable method for sending money from one bank account to another. Here are some benefits of sending money through NEFT.

• NEFT fund transfer is economical to use as it charges low fees on fund transfers. With an Metra Trust account, NEFT fund transfers are completely free of charge.
• It offers a secure environment to send money online. Since it is regulated and monitored by RBI, NEFT is a trusted way to send money online.
• It makes cheque and DD transfers obsolete as it offers a faster transfer mode.
• You receive SMS alerts and email updates for every transaction.
• The facility is available on public and bank holidays round-the-clock, which makes it convenient for customers.  
• NEFT is versatile, accommodating both high-value transactions and smaller ones, ensuring flexibility for all kinds of users.

Who can use NEFT?
 

National Electronic Fund Transfer is a convenient method to transfer money online. It is available for any individual holding a bank account. Whether it is corporate, small, and medium businesses, individuals, etc., anyone can use NEFT transfer mode to send and receive money online.

Through NEFT, funds can be transferred within the bank accounts of the same bank as well as accounts of different banks. However, the user must hold an active bank account to send or receive funds through NEFT. For sending money through online banking, you can log into your bank account, choose NEFT as your fund transfer mode, and enter the beneficiary’s account details and the amount to be transferred. NEFT is an efficient way of sending money to bank accounts, where you can omit lengthy transfer processes and paper checks at bank branches.  

Details required for fund transfer through the NEFT system?
 

When transferring money through NEFT, the sender needs to enter a few details pertaining to the beneficiary’s bank account. Here are the details you need to fill out in an NEFT fund transfer online form.

• Beneficiary’s bank account name
• Beneficiary’s bank account number and type
• IFSC code
• Bank name and branch

Net banking and mobile apps offer the facility to add beneficiary details to a favourite list to help them with recurring payments. Adding beneficiaries to this list helps accountholders to avoid adding details every time they transfer money.

How to pay credit card bills through NEFT?
 

You can use NEFT to pay your credit card bills conveniently. To use this facility, you need to log into your online bank account, add your credit card as beneficiary, and proceed with payment as mentioned below.

1. Sign into your net banking using your username and password.

2. Choose the ‘add beneficiary details’ option. You will get a form to enter beneficiary details.

3. Enter your credit card details in the field provided. You must know the IFSC code of your credit card.

4. Enter the credit card number in the field provided for account number and other details as required.

5. After your credit card is registered as a payee, you can then choose NEFT fund transfer mode, choose the billing amount, and proceed with payment.

Once the payment is completed, you will receive an SMS and e-mail update for payment receipt.

What are the permitted timings to make an NEFT transaction?
 

Earlier, the NEFT fund transfer method was available during a specified duration on weekdays. The timings were –

• 8 AM to 7 PM from Monday to Friday
• 8 AM to 12 noon on Saturdays

Now, NEFT is available round-the-clock on weekdays as well as weekends. In December 2019, The Reserve Bank of India introduced the all-new NEFT fund transfer which remains active 24*7, 365 days, including bank and public holidays. This continuous accessibility greatly enhances the flexibility and usability of the NEFT system for the public.

By offering non-stop NEFT services, the RBI not only aligns with global banking practices but also ensures that individuals and businesses can manage their finances without time constraints. Whether it's a pressing financial obligation at an odd hour or a business transaction on a national holiday, the extended NEFT service caters to all such needs.

Does NEFT come with a transfer limit?
 

The RBI has not declared an upper limit on the amount you can transfer using NEFT. However, the upper limit can vary from bank to bank. You can send a minimum of Re 1 through NEFT.  For cash transactions, the bank transfers a maximum of Rs. 50,000 per transaction.

If you wish for higher daily transactions, opt for an Metra Trust account as it offers fund transfer limits starting from a minimum of Re. 1 to a maximum limit of Rs. 20 lakhs. Additionally, NEFT transfers are completely free of charge at the bank branch or through online banking, irrespective of the amount being transferred. 

*Disclaimer: The zero fee banking service is applicable on Rs 10,000 AMB Savings Accounts and higher account variants, subject to AMB maintenance. These services are being offered free in good faith. In case of abuse, the bank reserves the right to charge fees as per market norms.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.