Banking awareness : National Electronic Funds Transfer (NEFT)

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Banking awareness : National Electronic Funds Transfer (NEFT)


What is NEFT?

National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.

key features of NEFT

    • Batch Processing Settlement

The settlement of fund transfer requests in the NEFT system is processed in batches on a half-hourly basis and not on a real-time basis like Real-Time Gross Settlement (RTGS).

There are 23 half-hourly settlement batches in all that run from 8:00 am to 7:00 pm on all working days including working Saturdays of the week In case if the transaction is received after the cut-off time, it gets processed on the next working day.

    • Settlements are cleared through a central clearing centre

The settlement of funds between two bank accounts situated in any geographical area within the country takes places centrally at Mumbai through the NEFT Clearing Centre (operated by National Clearing Cell, Reserve Bank of India, Mumbai).

    • No Transactional limits and Nominal Fees Charged:

Although there is no minimum or maximum limit on the amount of funds that could be transferred using NEFT, there is a limit of Rs 50,000/- per transaction for cash-based remittances within India and for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.

Charges

Inward Transaction  Free

Outward Transaction Slab Charges not exceeding
Upto Rs.10,000/- Rs. 2.00 per transaction
Upto Rs.1 lakh Rs. 4.50 per transaction
Above 1 lakh to 2 lakh Rs. 14.50 per transaction
 Rs.2 lakh and above  Rs. 25.00 per transaction