National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of India (RBI). This nation-wide payment system facilitating one-to-one funds transfer was started in November 2005. 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. Unlike Real-time gross settlement (RTGS), fund transfers through the NEFT system do not occur in real-time basis. NEFT settles fund transfers in half-hourly batches with 23 settlements. NEFT facilities are available at more than 75,000 branches offices of 101 banks across the country. In the recent time, NEFT has gained popularity due to its saving on time and the ease.
Prerequisites for NEFT
- An active net banking account
- Internet connection
Procedure of performing NEFT
- Login to your net banking account:
- Add the beneficiary as a payee: Enter the following details about the beneficiary (account you wish to transfer money to) in the ‘Add New Payee’ section:
- Account Number
- Name
- IFSC Code
- Account Type
- Go to Fund Transfer and select NEFT.
- If you have multiple accounts, select the account you wish to transfer money from.
- Select the payee and enter the amount that you wish to transfer.
- Review the details before you hit Submit.
Fee & charges for NEFT Transfer
There are no charges whatsoever for the recipient.
However, the sender might have to pay the following charges based on the amount they are sending-
| Amount |
Charges |
| < 10,000 |
Rs 2.50 + Applicable GST |
| 10,000 to 1 Lac |
Rs 5 + Applicable GST |
| 1 Lac to 2 Lac |
Rs 15 + Applicable GST |
| 2 Lac to 5 Lac |
Rs 25 + Applicable GST |
| 5 Lac to 10 Lac |
Rs 50 + Applicable GST |
Timings for NEFT Transactions
- Fund transfers through the NEFT system do not occur in real-time basis.
- NEFT settles fund transfers in half-hourly batches with 23 settlements occurring between 8:00 AM and 7:30 PM on weekdays and the 1st, 3rd and 5th Saturday of the calendar month.
- Transfers initiated outside this time period are settled at the next available window.
- No settlements are made on the second and fourth Saturday of the month, or on Sundays, or on public holidays.
How NEFT is Different from RTGS
| NEFT |
RTGS |
| Real Time |
Settled in Batches |
Minimum Amount: Rs.1
Maximum Amount: No limit |
Minimum Amount: Rs 2 lakh
Maximum Amount: Rs 10 lakh |
| 2 hours (subject to cut-off timings and batches) |
Instantly (30 minutes) |
How to Pay Credit Card Bill using NEFT
- Log in to your bank’s internet banking account
- Add the credit card as a beneficiary.
- Enter the credit card number as the account number and other details
- Go to the ‘NEFT Funds Transfer’ option and perform a fund transfer towards your credit card by entering the bill amount.
FAQs about NEFT
Q. If an NEFT transaction is not credited to a beneficiary account, does the Remitter get back the money?
A. Yes. If the money cannot be credited for any reason, the beneficiary’s bank will return the money within next two batches to the remitting bank. Once this amount is received back by the remitting bank, the amount is credited to the Remitter's account by the remitting bank.
Q. Whom I can contact, in case of non-credit or delay in credit to the beneficiary account for NEFT transaction?
A. You can contact your bank/branch or the receiver bank/branch or the Customer Facilitation Service center of the banks.
Q. How would one know the IFSC code of the receiving / beneficiary branch?
A. The remitting customer can obtain the IFS of receiving branch from his bank branch. The IFSC code is also available on the RBI website.
