NEFT- National Electronic Fund Transfer(Meaning) is a payment system in both modes online and offline for making Digital INDIA.
Nowadays, India is going to become a Digital India, and really it is possible if we try to make it Digital so you are thinking that how it will happen.
So I would like to show Why NEFT provides an important role to become digital and we should know all about Neft as meaning, timing, limit, maximum value, and minimum value, what is Neft, and How to do Neft.
Contents of this post
- How many ways of transfer funds in banking?
- What is the meaning of NEFT?
- What is the minimum transfer value for Neft?
- What is the maximum transfer value for Neft?
- What is the maximum limit of value in the offline mode of NEFT?
- What is the benefit of Neft?
- Why Neft is useful for you?
- What is NEFT Timing?
- What are the Neft charges?
- What is IFSC code for NEFT/ RTGS/ IMPS?
- Is online NEFT available 24/7?
- How to do NEFT online?
- How to do NEFT offline?
- How much time will take NEFT to receive/settle?
- What is the difference between NEFT, RTGS & IMPS?
How many ways of transfer funds in banking?
There are mainly three ways to transfer money from one account to another online easy and fast and these are
- NEFT- National electronic fund transfer
- RTGS- Real-time gross settlement
- IMPS- Immediate mobile payment service
other also available now for making Digital India
- Digital wallets
- UPI system
- Digital currency and more
Different payment and settlement systems in India have made the task of transferring money from one bank account to another easier and faster.
Now account holders don’t have to wait for days to receive money in their bank accounts. With the help of the latest digital payment systems, money can be sent and received in an instant anytime from anywhere.
A large number of banks, private companies, and government bodies along with others are adopting different payment and settlement methods.
This has helped in reducing the gap between the entities and their customers and other concerned people.
These methods are fast, convenient, and useful for documentation purposes.
What is the meaning of NEFT?
(NEFT) National Electronic Funds Transfer is a payment system that facilitates one-to-one funds transfer.
Using NEFT, people can electronically transfer money from any bank branch to a person holding an account with any other bank branch,
which is participating in the payment system.
Fund transfers through the NEFT system do not occur on a real-time basis and the fund transfer settles in 23 half-hourly batches.
NEFT, RTGS, and IMPS payment systems were introduced to offer convenience and flexibility to the account holders.
To use these online fund transfer services, the remitter must have the basic bank account details of the beneficiary.
The bank account details include the beneficiary’s name and the bank’s IFSC. Though all three payment systems are used for funds transfer, they exhibit a few differences.
What is the minimum transfer value for Neft?
If you want to transfer money to any other account holder then it also needs to know how much minimum money can be transferred.
The minimum transfer value/money is 1 Rs.
What is the maximum transfer value for Neft?
If you want to transfer money to any other account holder then it also needs to know how much maximum money can be transferred.
There is no limit to the maximum transfer value/money.
What is the maximum limit of value in the offline mode of NEFT?
In the case of offline mode if Neft is made by cheque then there is no limit but if made by cash then Neft’s limit is 50 thousand only.
What is the benefit of Neft?
Neft is very beneficial for money transfer from one place to another and more as
- No visit to the bank is required, as long as a person holds a valid bank account.
- Shortcomings of a physical instrument are easily overcome. This means that NEFT has completely omitted instances of physical damage to any monetary instruments, it’s theft or forging.
- NEFT is simple and efficient. It can be done in under a minute’s time and hardly involves any major formality.
- Confirmation of a successful transaction can be easily received and viewed through email and SMS notifications.
- Internet banking can be initiated and conducted from any place. This means that a person does not need to be present at a particular location to make NEFT transactions.
- Real-time transactions provide assurance to both parties.
- No physical presence of either party is required to conduct a transaction. Also, no physical instrument needs to be transferred at any point in time, between the conducting parties, to conclude the transaction.
- In the process of NEFT, you just have to enter the details of the beneficiary for the first time after which you can just select the beneficiary from the list, enter the amount and send it.
Why Neft is useful for you?
It is very useful for us because through Neft you can do many types of payment at home by online mode for an example
- Personal fund transfer
- payment of loans, EMI’S
- Creditors payment
- Have a legal record of a transaction that can be accessed at any time.
- This comes in use, in case of any dispute between parties or between authorities.
- Easy fund transfer
- Proof of evidence of payment and more.
- It is one of the most secure fund transfer options available
- You do not have to issue a DD or cheque
- The processing charges on NEFT transfers are very economical
- It is an online facility that is faster than any other option
What is NEFT Timing?
Now the NEFT timing is available according to the bank that you hold an account. you can get the latest timing from your bank by visiting your branch.
Now the timing is 8 am to 6.30 or 7 pm from Monday to Friday And 8 am to 1 pm on Saturday and in some banks, 8 am to 6.30 pm except 2nd and 4th Saturday
What are the Neft charges?
The Neft charges for the online channels means Neft initiated through online modes such as internet banking, mobile banking, pocket app, etc. is NIL
But in the case of a Branch visit, you will be charged for NEFT
|Amount up to Rs 10000
|Rs. 2.25 +GST
|And amount 10000 to 1 lakh
|Rs. 4.75 +GST
|Amount 1 lack to 2 lakh
|Rs. 14.75 +GST
|The amount above Rs 2 lakh
|Rs. 24.75 +GST
What is IFSC code for NEFT/ RTGS/ IMPS?
Indian Financial System Code (IFSC) means a unique code of Eleven digits of NEFT/RTGS enabled Branches.
Normally, this code will be printed on the cheque books OR it may be obtained from the branch where the account is maintained.
It is also available on the RBI website. In case the IFSC of the beneficiary bank is not known, the same can be obtained by selecting the Bank and Branch while registering the beneficiary.
Is online NEFT available 24/7?
Online NEFT can be done 24X7 but after the below-mentioned cut-off time, the funds will be transferred to the beneficiary bank on the next working day.
|Monday to Friday
|8 am to 6.30 or 7 pm
|8 am to 7 pm except for 2nd and 4th Saturday
How to do NEFT online?
You can do easily Neft online through the steps are given below:
- First of all, Log on to the bank’s official net banking website using your user name and password in which your bank account is available if you do have no user name or password then Firstly get it from your branch bank or in some cases online creation of user name or password is available.
- The second step- go to add & manage beneficiary then choose the same bank or another bank beneficiary create an option and create beneficiary by entering detail like Name, Account No, Address, Limit, Ifsc code, Mobile No. and accept terms and condition and click on submit button and verify by OTP and wait for 3 to 4 hours if not activated on time.
- And the third step- after login goes to option payment/ fund Transfer>other bank transfer Then choose created active beneficiary for NEFT.
- And now a select Neft payment option enters Neft amount and select purpose and click on submit and authorize by transaction password or mobile OTP and your NEFT is complete.
- You will get msg for an alert on your registered mobile no for Neft.
How to do NEFT offline?
NEFT fund transfer by online banking has acquired huge popularity in India. The availability of smartphones in today’s time has assisted in the active usage of online NEFT transfer. However, the availability of offline fund transfers through NEFT is easily provided by a number of banks across the nation.
For the offline NEFT process, the possession of an NEFT form from your bank branch is important. All the necessary details are filled in this form which is later handed over to the bank official.
The later procedure is similar to the NEFT online mode since the request is forwarded by the officials through the internet.
Points to remember
While aiming for a successful NEFT transaction, the remitter should maintain necessary information such as the bank account number from which the fund has to be debited, the beneficiary’s account number, the IFSC code of the beneficiary’s bank, and obviously the fund transfer amount.
All of these details need to be filled in in the offline NEFT form available at the bank branch.
Always keep a check that the destination bank branch, as well as the remitting bank branch, is part of the NEFT network across India.
And for fund transfer amounts over Rs. 2 lakh by offline route, the remitting customer needs to attach a cheque leaflet along with the filled NEFT form.
How much time will take NEFT to receive/settle?
Neft will take the time of half an hour to 4 hours to show in your bank account after initiating NEFT.
Because Neft transfers are settled half our watches between 8 am to 7 pm from Monday to Saturday except 2nd and 4th Saturday.
What is the difference between NEFT, RTGS & IMPS?
|National electronic fund transfer
|Real-time gross settlement
|immediate mobile payment service
|Payment option available
|online and offline both
|online and offline both
|Min. transfer value
|2 lac Rs
|max transfer value
|5 lac Rs
|8 am to 7 pm on all working days
|8 am to 6 pm
|24/7 and 365 days
|Inward transaction charges
|Depends on banks’ norms and decision
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An Accountant, GSTP, GST blogger, Website Creator, SEO Builder & Co-founder of the website https://gstportalindia.in for the help of GST Taxpayers of India. Having a perfect accounting experience of more than 10 years in a Private Ltd Company.