NEFT : What is NEFT? How it works?
You must have heard about the NEFT word. And if you use internet banking, you will be well aware of this terms. Because you will need to NEFT. And if you do not know what the NEFT is and how it works. So let’s talk about this.
What is NEFT?
In fact, the full name of NEFT is ‘National Electronic Funds Transfer’ and it is a method which works through any bank to send money to the account holder in any other bank. This facility was started on November 2005. And in today’s time, you can take advantage of this facility at almost every national level bank.
RBI has offered two alternatives to electronic transfer of money from one bank account to another account. Which are – NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settelment). Through both of these you can be done through the fund transfer internet banking facility. According to the RBI,
“There is a nation-wide payment system which is meant for money transfer between one and the other. And even if the account holder does not keep his account in any bank. “
NEFT is a multi-dimensional way through which you can transfer money to any customer or your client in very short time by electronic means. Although it takes time, but even then this time is very less in view of the facility. This is very different from RTGS because the transfer of money in RTGS happens in real time. However, according to a fixed time batch, that means your money is transferred after a certain time interval.
How does NEFT work?
It is easy to send money from NEFT. But to understand how NEFT works, you need to understand the following steps –
Activation
Those using internet banking for NEFT or RTGS transactions need to activate third-party transactions. After that you will be able to transfer funds.
Beneficiary
The man who has to send the money, it is necessary to add it as a beneficiary. Also, the bank account of that person should also be known. Under this, it is important to know the name of the beneficiary account holder, account number, bank and branch name and the branch in which the money is to be sent.
Processing
It takes 12-24 hours for the bank to check the Debit of Bank Beneficiary. However, now check bank details very soon. Once the investigation is completed, the new beneficiary gets activated. After which the fund can be transferred to the respective account.
Transfer
First choose the transfer option (NEFT or RTGS). Then present the details of the name, amount and transfer of the Beneficiary. After entering the details and the security transaction password transfer is processed. NEFT is in the transfer batch, which means it takes a little longer. While RTGS transfers are real time bases immediately.
What are the charges for NEFT
For each NEFT, each bank charges a fixed fee. The details of which are as follows –
Transaction Amount NEFT Charges
UP to ₹ 10,000 (not exceeding) Rs 2.50 (+ Service Tax)
Above ₹ 10,000 up to ₹ 1 lakh (not exceeding) Rs 5 (+ Service Tax)
Above ₹ 1 lakh and up to ₹ 2 lakhs (not exceeding) Rs 15 (+ Service Tax)
Above ₹ 2 lakh and up to ₹ 5 lakhs (not exceeding) Rs 25 (+ Service Tax)
Above ₹ 5 lakhs Rs 25 (+ Service Tax)
Note – In these prescribed fees, changes in the condition of changes in the rules of the bank and the bank are possible. At the same time, the beneficiary who receives the money should not be charged any fee. Whereas, the payment rates are payable to the bank in the manner of the sender.
Some Important Fact about NEFT :
1. The amount of at least Rs 2 lakh can be transferred through RTGS. There is no such limit for NEFT.
2. Transfer of funds through NEFT is within the stipulated time frame of RBI. RTGS transactions are instant settled.
3. Fund transfer through NEFT and RTGS can also be done through bank branch.
4. Timings – We have talked about NEFT that this batch is completed in the process and you can also call it Settlement Timing. This is done by batch hour and timing is something like this – Monday to Saturday (Except 2nd and 4th Saturday) – 8:00 AM to 6:30 PM
5. If any transaction is started after the scheduled time. So it completes the next working day.
How Much Time Does It Take?
Through NEFT, you can transfer funds from Monday to 8:00 AM to 6:30 PM. Also, access to money in the account of Beneficiary takes an average of 3 hours. Occasionally it takes longer.
NEFT Enabled Banks – 5 May, 2019
 | Abhyudaya Cooperative Bank |
| Abu Dhabi Commercial Bank |
| Aditya Birla Idea Payments Bank |
| Ahmedabad Mercantile Cooperative Bank |
| Ahmednagar Merchants Co-op Bank Ltd |
| Airtel Payments Bank Limited |
| Akola Janata Commercial Cooperative Bank |
| Allahabad Bank |
| Almora Urban Co-Operative Bank ltd |
| Ambarnath Jaihind Co-Op Bank Ltd Ambarnath |
| Andhra Bank |
| Andhra Pragathi Grameena Bank |
| Andhra Pradesh Grameena Vikas Bank |
| Apna Sahakari Bank Ltd |
| Australia and New Zealand Banking Group Ltd |
| AU Small Finance Bank Limited |
| Axis Bank |
| Bandhan Bank Limited |
| Bank Internasional Indonesia |
| Bank of America |
| Bank of Bahrein and Kuwait |
| Bank of Baroda |
| Bank of Ceylon |
| Bank of India |
| Bank of Maharashtra |
| Bank of Tokyo Mitsubishi Ltd |
| Barclays Bank |
| Bassein Catholic Co-Op Bank Ltd |
| Bhagini Nivedita Sahakari Bank Ltd Pune |
| Bharat Cooperative Bank Mumbai Ltd |
| BNP Paribas Bank |
| Canara Bank |
| Capital Small Finance Bank Ltd |
| Commonwealth Bank of Australia |
| Catholic Syrian Bank |
| Central Bank of India |
| Chinatrust Commercial Bank |
| CITI Bank |
| Citizen Credit Cooperative Bank |
| City Union Bank Ltd |
| Commonwealth Bank of Australia |
| Corporation Bank |
| Credit Agricole Corporate and Investment Bank |
| Credit Suisse AG |
| DBS Bank Ltd |
| DCB Bank Ltd |
| Deogiri Nagari Sahakari Bank Ltd. Aurangabad |
| Dena Bank |
| Deposit Insurance and Credit Guarantee Corporation |
| Deustche Bank |
| Development Bank of Singapore DBS |
| Dhanalakshmi Bank |
| DICGC |
| DMK Jaoli Bank |
| DOHA Bank |
| Doha Bank QSC |
| Dombivli Nagari Sahakari Bank Ltd |
| Durgapur Steel Peoples Co-Operative Bank Ltd |
| Emirates NBD Bank P J S C |
| Esaf Small Finance Bank Limited |
| Equitas Small Finance Bank Limited |
| Export Import Bank of India |
| Federal Bank Ltd |
| Fincare Small Finance Bank Ltd |
| FINO Payments Bank |
| Firstrand Bank Ltd |
| First Abu Dhabi Bank PJSC |
| G P Parsik Bank |
| GS Mahanagar Co-operative Bank Limited, Mumbai |
| Gurgaon Gramin Bank Ltd |
| HDFC Bank Ltd |
| Haryana State Co-Operative Bank |
| Himachal Pradesh State Co-Operative Bank Ltd |
| HSBC Bank |
| HSBC Bank Oman Saog |
| ICICI Bank Ltd |
| IDBI Ltd |
| IDRBT |
| IDFC First Bank Ltd |
| Idukki District Co-Operative Bank Ltd |
| Indian Bank |
| India Post Payment Bank |
| Indusind Bank Ltd |
| Indian Overseas Bank |
| Industrial and Commercial Bank of China Ltd |
| Industrial Bank of Korea |
| Irinjalakuda Town Co-Operative Bank Ltd |
| Jalgaon Janata Sahkari Bank Ltd |
| Jammu and Kashmir Bank |
| Janakalyan Sahakari Bank Ltd |
| Jana Small Finance Bank Ltd |
| Janaseva Sahakari Bank (Borivli) Ltd |
| Janaseva Sahakari Bank Ltd |
| Janata Sahakari Bank Ltd (Pune) |
| Jio Payments Bank Limited |
| JP Morgan Chase Bank NA |
| Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd |
| Kalyan Janata Sahakari Bank Ltd |
| Kalupur Commercial Cooperative Bank |
| Kapol Cooperative Bank |
| Karnataka Bank Ltd |
| Karnataka Vikas Grameena Bank |
| Kaveri Grameena Bank |
| Karur Vysya Bank |
| KEB Hana Bank |
| Kerala Gramin Bank |
| Kotak Mahindra Bank |
| Kozhikode District Cooperative Bank Ltd |
| Krung Thai Bank PCL |
| Laxmi Vilas Bank |
| Mahanagar Cooperative Bank Ltd |
| Maharashtra Gramin Bank |
| Maharashtra State Cooperative Bank |
| Mahesh Sahakari Bank Ltd Pune |
| MashreqBank PSC |
| Mizuho Bank Ltd |
| MUFG Bank Ltd |
| Nagar Urban Co-Operative Bank |
| National Bank for Agriculture and Rural Development |
| National Bank of Abu Dhabi PJSC |
| Nagpur Nagrik Sahakari Bank Ltd |
| National Australia Bank |
| Nav Jeevan Co-Op Bank Ltd |
| New India Co-operative Ban Ltd |
| NKGSB Co-operative Bank Ltd |
| North East Small Finance Bank Limited |
| North Malabar Gramin Bank |
| NSDL Payments Bank Limited |
| Nutan Nagarik Sahakari Bank Ltd |
| Oman International Bank |
| Oriental Bank of Commerce |
| Paytm Payments Bank Ltd |
| Pragathi Krishna Gramin Bank |
| Prathama Bank |
| Prime Co-Operative Bank Ltd |
| PT Bank Maybank Indonesia TBK |
| Punjab and Maharashtra Cooperative Bank Ltd |
| Punjab and Sind Bank |
| Punjab National Bank |
| Qatar National Bank SAQ |
| Rabobank International |
| Rajarambapu Sahakari Bank Ltd |
| Rajgurunagar Sahakari Bank Ltd |
| Rajkot Nagarik Sahakari Bank Ltd |
| RBI PAD, Ahmedabad |
| RBL Bank Limited |
| Reserve Bank of India |
| Reserve Bank Of India, Pad |
| Sahebrao Deshmukh Co-Op. Bank Ltd |
| Samarth Sahakari Bank Ltd |
| Sant Sopankaka Sahakari Bank Ltd |
| Saraswat Co-operative Bank Ltd |
| SBER Bank |
| SBM Bank India Limited |
| SBM Bank Mauritius Ltd |
| Shikshak Sahakari Bank Ltd |
| Shinhan Bank |
| Shivalik Mercantile Co Operative Bank Ltd |
| Shri Chhatrapati Rajashri Shahu Urban Co-Op Bank Ltd |
| Shri Veershaiv Co-Op Bank Ltd |
| Sir M Visvesvaraya Co Operative Bank Ltd |
| Small Industries Development Bank of India |
| Societe Generale |
| Solapur Janata Sahkari Bank Ltd |
| South Indian Bank |
| Standard Chartered Bank |
| State Bank of India |
| State Bank of Mauritius Ltd |
| Sumitomo Mitsui Banking Corporation |
| Surat National Cooperative Bank Limited |
| Suryoday Small Finance Bank Limited |
| Sutex Cooperative Bank Ltd |
| Syndicate Bank |
| Tamilnad Mercantile Bank Limited |
| Telangana State Coop Apex Bank |
| Textile Traders Co-Operative Bank Ltd |
| The A.P. Mahesh Co-Op Urban Bank Ltd |
| The Akola District Central Co-Operative Bank |
| The Andhra Pradesh State Coop Bank Ltd |
| The Bank of Nova Scotia |
| The Baramati Sahakari Bank Ltd |
| The Cosmos Cooperative Bank Ltd |
| The Delhi State Cooperative Bank Ltd |
| The Gadchiroli District Central Cooperative Bank Ltd |
| The Greater Bombay Co-operative Bank Ltd |
| The Gujarat State Co-Operative Bank Ltd |
| The HASTI Co-Operative Bank Ltd |
| The Jalgaon Peoples Co-Op Bank |
| The Kangra Central Cooperative Bank Ltd |
| The Kangra Cooperative Bank Ltd |
| The Karad Urban Co-op Bank Ltd |
| The Karanataka State Co-Operative Apex Bank Limited |
| The Kerala State Co-Operative Bank Ltd |
| The Kurmanchal Nagar Sahkari Bank Ltd |
| The Mehsana Urban Cooperative Bank Ltd |
| The Mumbai District Central Co-Op Bank Ltd |
| The Municipal Co Operative Bank Ltd, Mumbai |
| The Nainital Bank Ltd |
| The Nasik Merchants Co-Op Bank Ltd |
| The Navnirman Co-Operative Bank Limited |
| The Pandharpur Urban Co Op. Bank Ltd. Pandharpur |
| The Rajasthan State Cooperative Bank Ltd |
| The Royal Bank of Scotland N.V. |
| The Seva Vikas Co-Operative Bank Ltd |
| The Shamrao Vithal Cooperative Bank Ltd |
| The Sindhudurg District Central Coop Bank Ltd |
| The Surat District Co Operative Bank Ltd |
| The Surath Peoples Co-Op Bank Ltd |
| The Tamilnadu State Apex Cooperative Bank |
| The Thane Bharat Sahakari Bank Ltd |
| The Thane District Central Co-Op Bank Ltd |
| The Thane Janata Sahakari Bank Ltd |
| The Urban Co-operative Bank Ltd |
| The Varachha Co-Op. Bank Ltd |
| The Vijay Co-Operative Bank Limited |
| The Vishweshwar Sahakari Bank Ltd |
| The West Bengal State Cooperative Bank Ltd |
| The Zoroastrian Cooperative Bank Limited |
| Thrissur District Co-Operative Bank Ltd |
| TJSB Sahakari Bank Ltd |
| Tumkur Grain Merchants Cooperative Bank Ltd |
| UCO Bank |
| Ujjivan Small Finance Bank Limited |
| Union Bank of India |
| United Bank of India |
| United Overseas Bank |
| Utkarsh Small Finance Bank |
| Vasai Janata Sahakari Bank Ltd |
| Vasai Vikas Sahakari Bank Ltd |
| Vijaya Bank |
| Westpac Banking Corporation |
| Woori Bank |
| Yes Bank Ltd |
| Zila Sahkari Bank Ltd Ghaziabad |
Source : RBI Database
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