National Electronic Funds Transfer, abbreviated as NEFT, is an online money transferring method that transfers money from one bank account to another.
For NEFT transfer, both the accounts, i.e., the account from which money is sent and the account which receives money, should be NEFT-enabled.
NEFT is a centralized payment system throughout India operated by the Reserve Bank of India (RBI). This payment system was started in 2005 and is maintained by the Institute for Development and Research in Banking Technology (IDRBT).
The payment service is convincing and safe and is available 24 hours a week; you can transfer money at any time from any place.
In this post, we will learn about NEFT online payment system.
What is NEFT Transfer Payment System?
NEFT payment is a centralized online money transfer system throughout India that facilitates fund transfers from one NEFT-enabled bank account to another. The Reserve Bank of India started this payment method in November 2005.
RBI’s aim in incorporating this payment system into the banking sector is to create an efficient, secure, reliable, and speedy electronic money transfer system that will facilitate fund transfer and settlement across India and help relieve pressure on existing paper-based funds transfer and settlement systems.
Presently more than 200 banks are participating in the NEFT payment system. Payments made through NEFT will be credited into the beneficiary account on the same or the next day after the settlement time.
There was a fixed time for NEFT before December 2019, during which transactions were processed.
Any transaction made via NEFT was processed only Monday to Friday from 08: AM to 06:30 PM, and on Saturdays-08: AM to 12:00 PM.
But, NEFT transactions can be performed 24 hours a day throughout the week from 2020.
NEFT Payment Transfer Time
NEFT online money transfer service is available 24 hours on all days of the week and throughout the year. The transactions are conducted in batches every 30 minutes throughout the day.
For example, if you make a transaction through this service at 8:00 AM, the transaction will likely be processed by 9:30 AM. Similarly, if a transaction is made at 9: 25 AM, the processing time for the transaction shall generally be by 9:30 AM.
What is NEFT Limit Amount?
RBI has not put any minimum or maximum limit on the amount transferred through NEFT; this means any amount can be transferred using this service. You can transfer from Rs.1 to any amount via NEFT.
Not having a limit on the transfer of minimum or maximum amounts is one of the reasons people choose this service to transfer money conveniently and according to their needs.
However, keep in mind that RBI sets no limit on the amount transferred through NEFT; banks maintaining your accounts may have put a limit on this amount.
For example SBI has following NEFT transaction limits on different types of account.
|Payment Type||Account Type||Min. Amount||Max. Amt. Per Transaction||Max. Amt. Per Day|
|Saral||No Limit||10 lacks||10 lacks|
|Vyapaa||No Limit||50 Crore||No Limit|
|Vistaar||No Limit||2000 crore||No Limit|
How to Do NEFT?
If you want to transfer money through NEFT, the below-mentioned steps will help you in doing so:
- First, you must add the beneficiary to whom you want to transfer money.
- If you have an internet banking facility activated on your account, log in and add a beneficiary.
- You can also use mobile banking apps such as Yono for SBIB bank, iMobile Pay for ICICI bank, and mPay for J&K bank to add a beneficiary.
- Log into Yono using your Mpin (for SBI)
- Click on Yono pay
- Click on transfer to own/other accounts a new page will open.
- At the bottom of the page, click on pay a new beneficiary.
- Enter your Profile password and click on submit
- Now select other banks.
- A new page will open where you must enter the beneficiary Name, Account number, IFSC Code of the branch, Maximum amount, and beneficiary Nickname.
- Click on Next
- Select the amount you want to send, purpose, and write remarks (if any) and pay
- Click on the terms and conditions and confirm
- Bank will send you OPT; enter that OTP, and your money will be sent to the beneficiary.
Now you added a beneficiary successfully, and in the future, if you want to send any amount to the beneficiary, you do not need to add him again; click on pay beneficiary, enter the amount and OTP and pay him.
Who Can Transfer Money Through NEFT?
Any individual account holder, corporate, or firm with an account in any bank in the country participating in NEFT can transfer money through this online payment system.
The sender and receiver accounts must be in NEFT-enabled bank branches. A sender needs an active internet connection and the receiver’s details such as Account number, IFSC code of the bank, contact details, etc.
There are more than 200 NEFT-enabled banks in India that are participating in the National Electronic Funds Transfer system; some of these banks are:
- State Bank of India
- ICICI Bank LTD
- HDFC Bank
- Axis Bank
- City Union Bank LTD.
- J&K Bank
- Punjab National Bank
- IDBI Bank
- Indian Overseas Bank
- Airtel Payments Bank Limited
- Ahmedabad Mercantile Cooperative Bank
- UCO Bank
- Yes Bank
- Australia and New Zealand Banking Group Limited
Advantages of Using the NEFT Payment System
- The NEFT payment system is an authorized payment system by RBI.
- The service is available round the clock, 24×7 a week throughout the year.
- The payment method is secure and convenient.
- Funds are securely transferred into the beneficiary account.
- Available throughout India
- Senders do not need to visit the bank to transfer money to the beneficiary. They can move the fund from their workplace or home via internet banking.
- SMS confirmation for both sender and receiver of sending and receiving funds
- No charges are levied on the transaction through NEFT.
- In addition to funding transfers, you can use NEFT to pay your credit card payments, loan EMIs, etc.
The national electronic funds transfer system facilitates individual account holders, corporate, and firms having accounts in NEFT-enabled bank branches to transfer money online using net banking.
Approved by the RBI, this payment system works throughout India and facilitates people to transfer money from one bank account to another without going to the bank in person.
The payment is convenient and secure, and can transfer as low as Rs.1 to any amount you desire. People in the country use the NEFT joyfully as they do not need to go to their respective branches to transfer money to their families and friends.