Introduction to NEFT, India's electronic funds transfer system www.deekpay.com

About NEFT

India's National Electronic Funds Transfer (NEFT) is a programme of theReserve Bank of India (RBI) An electronic funds transfer system is maintained. It was started in November 2005 and is set up and maintained by the Institute of Banking Technology Development (IBTD). NEFT enables bank customers in India to make one-to-one transfers between any two NEFT-enabled bank accounts. This is done through electronic messaging.

Unlike real-time full settlement, fund transfers through the NEFT system do not occur in real time. Previously, the NEFT system batch settled funds transfers on an hourly basis, with 23 settlements occurring between 00:30 to 00:00 hours.

From 16 December 2019, there will be 48 half-hour batches between 00.30am and 00.00am every day, holiday or otherwise.

As on 30th November 2019, NEFT facility is available at 1,48,477 branches/offices of 216 banks across the country and can be used online through the websites of NEFT enabled banks. NEFT has gained popularity for its ease and efficiency in transactions.

There is no limit to the amount of funds that can be transferred using NEFT (either minimum or maximum).

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The National Electronic Funds Transfer System (NEFTS) of India is one of the many ways to transfer funds online. It is subject toReserve Bank of India (RBI)regulation, and therefore in accordance with theReserve Bank of India (RBI) Operate within the guidelines established.

NEFT is a one-to-one payment tool NEFT transactions can only be made between banks offering NEFT services Transactions via NEFT do not occur in real time; meaning that NEFT transactions take several days to complete Till December 2019, RBI has fixed processing hours for NEFT transactions. Any NEFT transaction will be processed only between 8:00 a.m. to 6:30 p.m. from Monday to Friday and 8:00 a.m. to 12:00 p.m. on Saturday. However, from 2020 onwards, NEFT transactions can be conducted 24/7 To transfer funds through NEFT, you have to add the beneficiary on the online banking portal of the desired bank There is no limit to the amount of NEFT transaction All NEFT transactions are subject to fees; the amount ranges from Rs. 2.5 to Rs. 25, depending on the amount transferred As per Reserve Bank of India (RBI) guidelines, payments made through NEFT will be processed and settled in batches within half an hour vantage

Here are the reasons why you can choose NEFT (National Electronic Funds Transfer) among all other online money transfer methods:

NEFT makes fund transfers simple, easy and feasible All NEFT transactions are conducted online; therefore, there is no third party involvement NEFT transactions are completely safe and secure due to the involvement of RBI Recipient and sender of funds are notified immediately after the transaction is completed NEFT does not require a cheque or demand draft to transfer funds; therefore, it is economical Any account holder, be it an individual, a company or a business can make NEFT transactions. The only requirement is that both banks must support NEFT Apart from money transfers, you can also use NEFT to pay for loan instalments, credit card charges, EMIs, etc. Learn more: NEFT vs RTGS: What's the difference?

How NEFT works

Transferring money through NEFT is easy and convenient. Here's what you need to do-

Log in to your online banking account Click on "Funds Transfer" on the homepage. Select "NEFT" from the drop-down menu that appears. Please note that if you have not yet added "Add Beneficiary" to your account's list of beneficiaries, you will need to do this To add a new beneficiary, you need to click on the "Add Beneficiary" option on the page Enter the required information about the payee, such as name, bank account number, IFSC, etc. Click "Confirm" or "Add". In order to validate this step, you will be asked to enter the OTP sent to your registered mobile number. Once this is done, your action will be processed. It takes approximately 24 hours to add beneficiaries After adding the beneficiary to your account, you need to select the beneficiary details (to whom you need to send money) from the list of beneficiaries Enter the amount to be transferred and confirm your transaction Click "Confirm" and the amount will be transferred from your bank account to the other party's bank account.

NEFT Transaction costs

The NEFT transaction involves the following additional charges as remittance fees.

Transaction AmountFee AmountLess than or equal to Rs. 10,000Rs. 2.5Between Rs. 10,000 and Rs. 1 LakhRs. 5Between Rs. 1 Lakh and Rs. 2 LakhRs. 15Equal to or more than Rs. 2 LakhRs. 25Transaction fees for NEFT, India's electronic funds transfer system