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 –
Those using internet banking for NEFT or RTGS transactions need to activate third-party transactions. After that you will be able to transfer funds.
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.
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.
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|
|Almora Urban Co-Operative Bank ltd|
|Ambarnath Jaihind Co-Op Bank Ltd Ambarnath|
|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|
|Bandhan Bank Limited|
|Bank Internasional Indonesia|
|Bank of America|
|Bank of Bahrein and Kuwait|
|Bank of Baroda|
|Bank of Ceylon|