The National Electronic Funds Transfer (NEFT) system is a popular method for online money transfer in India. Regulated by the Reserve Bank of India (RBI), NEFT operates according to guidelines set by the central bank. In this article, we will explore NEFT charges, the process of transferring funds through NEFT, and the benefits of using this payment facility.
NEFT is a one-to-one payment system that allows individuals and businesses to transfer funds electronically between bank accounts. Unlike real-time payment methods, NEFT transactions are processed in batches, which means they may take a few days to complete. However, NEFT offers the advantage of being available 24/7, making it convenient for users.
Charges applicable on NEFT transactions
Before January 2021, NEFT transactions incurred additional charges based on the transaction amount. Here is a breakdown of the charges:
| Transaction amount | Fee amount |
| Up to Rs. 10,000 | Rs. 2.5 |
| Rs. 10,000 to Rs. 1 Lakh | Rs. 5 |
| Rs. 1 Lakh to Rs. 2 Lakh | Rs. 15 |
| Equal to or more than Rs. 2 Lakh | Rs. 25 |
These charges were applicable until December 2021. However, in a move to promote digital transactions, the RBI removed all fees associated with online NEFT transactions from January 2021 onward. As a result, users can now transfer funds via NEFT without any additional charges.
Steps to transfer funds through NEFT
Transferring funds via NEFT is straightforward. Follow these steps:
- Log in to your internet banking account: Access your bank’s internet banking portal.
- Navigate to fund transfer: Look for the “Fund transfer” option on the main page.
- Select NEFT: From the drop-down menu, choose NEFT as the transfer method.
- Add beneficiary: If you have not already, add the beneficiary (recipient) to your account. Provide their details, including name, bank account number, and IFSC code.
- Confirm and authenticate: Confirm the beneficiary details and authenticate the transaction using the OTP sent to your registered mobile number.
- Processing time: It may take up to 24 hours to add a new beneficiary to your account.
- Select Beneficiary: Once the beneficiary is added, select their details from your list of beneficiaries to initiate the NEFT transfer.
Benefits of making transactions through NEFT
- Convenience: NEFT allows you to transfer funds at any time, even outside regular banking hours.
- No transaction limits: There are no limits on the amount you can transfer via NEFT.
- Secure: NEFT transactions are secure and regulated by the RBI.
- Cost-Effective: With no additional charges, NEFT is a cost-effective way to transfer money.
Conclusion
NEFT is a reliable and efficient method for transferring funds electronically. Whether you are paying bills, sending money to family, or conducting business transactions, NEFT provides a seamless experience without any extra charges. So go ahead, make your NEFT payments hassle-free.
