What Is NEFT: Transaction Time, Limit Per Day, Charges and How It Works? (2024)

NEFT stands for National Electronic Funds Transfer. It is a technology for transferring money from one bank account to another. The RBI runs it to facilitate transactions throughout the year. This article discusses the key aspects of NEFT, such as NEFT transaction time, charges, and limits per day.

What is NEFT?

NEFT, or National Electronic Funds Transfer, is a fund transfer mechanism started by the RBI in 2005. Itsettles transactions in half-hourly batches. Organisations, companies and individuals can use it to transfer funds from one bank account to another. It isavailable 24/7 throughout the year. NEFT enjoys pan-India coverage.

You can do an NEFT transaction from the comfort of your home. There is no compulsion to visit your nearest bank branch for an NEFT process.

NEFT Timings

You can do aNEFT transaction 24/7 throughout the year. The transactions are settled in batches at half-hourly intervals.

NEFT Charges

RBI has capped the fees that banks can charge customers for NEFT transactions. The following are themaximum charges that can belevied for NEFT:

NEFT Limit Per Day

TheRBI has not placed any limits onNEFT transactions. However, anindividual bank may set up anNEFT transfer limit.

NEFT Form

To do anoffline NEFT transaction, you must fill out an NEFT form. You must fill out your account number, name, and address, along with the beneficiary details. Here’s anexample of what an NEFT form looks like:

How to Make an NEFT Transfer?

Here are thesteps to do anNEFT transferonline:

Step 1: Visit the website of the bank where you have created your account.

Step 2: Log in to the net banking portal with your credentials.

Step 3: Add the beneficiary by adding details such as IFSC, account number, account type, and name.

Step 4: Go to the section for initiating payments and select NEFT for the transfer.

Step 5: Choose the account from which money has to be sent.

Step 6: Select the beneficiary, enter the amount you wish to transfer and click on ‘Submit’.

Benefits of Using NEFT for Fund Transfer

Here are some of thebenefits of usingNEFT transfer for fund transfers:

• Available 24/7 throughout the year.
• It can be done entirely online.
• RBI has capped the maximum amount that banks can charge for NEFT transactions.
• Money can also be sent to Nepal.
• RBI has not imposed any NEFT limit per day.
• Funds can be transferred to NRE and NRO accounts.
• An NEFT transaction can even be done by someone without a bank account.

Details Required for Funds Through NEFT System

You will have toprovide the following details to initiate an NEFT transfer:

• Beneficiary’s name
• Name of beneficiary’s bank branch
• Beneficiary’s IFSC
• Beneficiary’s account type and number

How to Pay Credit Card Bills using NEFT?

You canpay your credit card bills using NEFT by following the below steps:

Step 1: Visit the bank website where you have your bank account.

Step 2: Add your credit card as a beneficiary by using the bank’s IFSC for credit card.

Step 3: Go to the section for fund transfers.

Step 4: Choose the NEFT option to transfer the funds.

Step 5: Choose the account from which you want to send the money and select the beneficiary.

Step 6: Enter the amount you want to transfer and click on ‘Submit’.

How to Add Credit Card as A Payee/Beneficiary for NEFT Credit Card Bill Payment?

Here’s how you canadd a credit card as a payee or beneficiaryfor NEFT credit card bill payment:

Step 1: Log in to your net banking portal

Step 2: Go to the section for adding beneficiaries.

Step 3: Enter details such as name, account number (card number), bank name, and IFSC (Credit card IFSC) and ‘Submit’.

The credit card will be added as a beneficiary to your account.

We have covered all the major aspects of using NEFT for banking transactions. The NEFT transaction time is 24/7x365 days a year. You can do an NEFT transaction once you have added the beneficiary details to your account, either online or offline.

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