On this page, We are going to learn about the full form of NEFT and the meaning of NEFT, As well as the meaning, definition, abbreviation, and acronym for NEFT in different categories. So you should read this post till the end.
The Full Form of NEFT: National Electronic Funds Transfer
NEFT stands for National Electronic Funds Transfer. NEFT is a system that facilitates the electronic transfer of funds from one bank account to another. that enables customers of participating banks to transfer funds between accounts.
You can do so without having to visit a branch of the bank. NEFT is a quick and efficient way to transfer funds, and it is available for use 24 hours a day, seven days a week.
Transfers made using NEFT are typically processed within a few hours, but the time frame may vary depending on the participating bank. Banks may also have their own limits on the maximum amount that can be transferred using NEFT. In order to use NEFT, you will need the following information:
- The name of the recipient bank
- The recipient’s account number
- The IFSC code of the recipient bank
- The amount of money you wish to transfer
Step By Step NEFT Transfer Procedure
There are two types of NEFT, one in offline mode, which is done in bank branches, and the other in online mode, which is done via online banking. NEFT has two different procedures that I will discuss here.
Procedure For Online NEFT
- Login to your net banking account. In case you do not have a net banking account, you can register one online through your bank’s website.
- Next, you need to add the beneficiary based on the payee. The beneficiary is the person to whom you want to transfer money. In the ‘Add New Payee’ section, you will need to fill in some details about the Beneficiary, including:
i. Account Number.
iii. IFSC Code.
iv. Account Type.
- You need to select NEFT as the fund transfer method after adding the payee.
- In this step, you must select the account to which you will transfer money, then choose the payee, and then enter the amount. Then you can add remarks (optional).
- Once you have done that, click on submit.
Procedure For Offline NEFT
- The first thing you need to do is go to the bank.
- There is an NEFT/RTGS form to fill out. Then, fill out the form with the following details about your beneficiary:
- Account Number.
- Bank Name.
- IFSC Code.
- Account Type.
- Account Number.
- The amount you need to transfer.
- Then you need to submit your filled-out form so that the funds can be transferred.
Fees and Charges of NEFT Transfer
The recipient bank does not charge you any fees for NEFT transactions. But, Senders for NEFT transactions are charged by the sending bank. These charges change from time to time. So Consult your bank before sending NEFT. Their rates are listed below.
|Transaction Amount||NEFT Charges|
|Up to Rs 10000||Rs 2.50 + Applicable GST|
|Amounts above Rs 10000 and up to Rs 1 lakh||Rs 5 + Applicable GST|
|Amounts above Rs 1 lakh and up to Rs 2 lakh||Rs 15 + Applicable GST|
|Amounts above Rs 2 lakh and up to Rs 5 lakh||Rs 25 + Applicable GST|
|Amounts above Rs 5 lakh and up to Rs 10 lakh||Rs 25 + Applicable GST|
Timings of NEFT Transactions
Through the NEFT system, funds are not transferred on a real-time basis. The settlements are made in half-hourly batches on the 1st, 3rd, and 5th Saturdays of NEFT week between 8:00 a.m. and 7:30 p.m. Each batch decides how much money to transfer.
The settlement does not occur on Sundays, public holidays, or the second and fourth Saturdays of the month.
Who can transfer funds through NEFT?
NEFT Fund Transfer can be used by any firm, individual, or corporation. but some points to keep in your mind
- There should be a bank account in that bank branch
- NEFT facility should also be enabled / available in that bank branch.
- It is not mandatory for you to have a bank account. Even if one does not have a bank account in a bank branch, a fund transfer can be done through NEFT by filling out the NEFT instruction slip.
- This method of transferring funds through NEFT can only transfer funds up to Rs 50,000.
Who can receive funds through NEFT?
All of these individuals, firms, and corporations will be able to receive funds sent by NEFT if they have bank accounts in their bank branches. However, the Beneficiary Customer must have a bank account at the bank branch in which the NEFT Facility is enabled/available in order to take advantage of this feature.
What are the benefits of NEFT?
- Through NEFT, you can easily send money from one account to another.
- The beneficiary does not need to go to the bank branch to receive funds.
- To receive the fund, some kind of paper formalities have to be done.
- Fund transfer fees of NEFT are very low.
- Fund transfers can be done from anywhere, anytime using Internet Banking.
- They are very safe and secure.
- In case your transaction is not completed due to any reason, the money is returned to the account.
- It is more useful for Low-Value Transactions.
- The receiver does not have to pay any additional cost.