What is NEFT and how to send money & Benefits ?

What is NEFT and how to send money?

Many of you have used NEFT to send money before, but do you have the right information about what is NEFT? Since the rules of the bank are changing day by day, it is very important to have updated information in all these subjects. Since online banking or internet banking has come, people have gone to the banks in a way that they do all their work when they sit at home. This does not hurt much of their time and they work smoothly.

There are three main ways to transfer online funds, which are NEFT, RTGS and IMPS. Of these, today we will get detailed information about NEFT. So if we talk about NEFT, then it is a medium to send money online through which we can easily send or receive money online from one account to another. So, today I thought why people would get full information about what the NEFT is doing, how it works and what causes it to die. Then let's start without delay and know about what is NEFT .

What is NEFT (NEFT in English)

The NEFT's full form is the National Electronics Fund Transfer or it is also called "National Electronic Funds Transfer" in English. It is a nationwide electronic fund transfer system, where money is easily and safely sent or received from one bank account to another. All NEFT settlements are operated in the batch-wise format. Money is sent through this system in all the NEFT-enabled banks across India in individual basis. Before starting any NEFT transfer, it is very important to have the Bank's IFSC Code, along with other details such as bank account number, bank branch, account holder name is also very important.

The system of this fund transfers is operated by the RBI. Which started in 2005. NEFT provides this facility to the bank's customers in India, so that the customer of the bank can easily transfer their capital to another NEFT-enabled bank account. It is also very safe.

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Fund transfer through NEFT system is not based on real time but instead of half-hour batch with 23 settlements occurring from 8:00 am to 7:30 pm on the first, third and fifth Saturday of NEFT week The transfer of money is decided in the batch. Apart from this, there is no settlement on the second and fourth Saturday of the month, on Sundays or on public holidays.

The facility of NEFT is mainly done in two types, one is the offline mode which is done in the branches of banks and the second is online mode which is available to customers by online banking and is done in batch. This is very popular because of the time saving and easy process of NEFT, because in this transaction can be easily done by online banking. If seen, NEFT is slightly different from other measures like RTGS and IMPS. Where the money sent to RTGS and IMPS is credited to the front bank account immediately. In the NEFT, your money is found in the time-table set by the bank.

Step by Step NEFT Transfer Procedure

Here I will provide you information about two different procedures of NEFT.

For Online Procedure NEFT:
Follow the steps given below to transfer funds through online

Step 1: Login to your net banking account first. If you do not have a net banking account, you can also register it through your bank's website.

Step 2: After that you have to add the beneficiary according to the payee. Here the beneficiary means that they want to transfer money to you. And to do this, you will also have to fill some details of Beneficiary in the 'Add New Payee' section, which is:

• Account Number
• Name
• IFSC Code
• Account Type

Step 3: Once the payee is added, you have to choose NEFT according to the Fund Transfer mode.

Step 4: Now you have to select the account where you have to transfer the money, here you have to select a payee, then enter the amount as you want, transfer and then add remarks (optional).

Step 5: Then click submit above.

For Offline Procedure NEFT:

Step 1: First visit the bank.

Step 2: Fill in the NEFT / RTGS form. After that, provide these following details about your beneficiary in that form:

• Name
• Account Number
• Bank Name
• Branch
• IFSC Code
• Account Type
• Account Number

The amount you want to transfer is Amount.
Step 3: After that, submit your completed form which can be further authorized to transfer money.

How does NEFT work?

Here I have tried to explain the generic process of NEFT transfer, but these nuances can vary in different banks, yet this process is almost identical.

1. As I have already told you how to fill the form in the details through online or offline mode, you have to provide complete information about the beneficiary. With this, the bank processes it further by authorize it.

2. After that, your bank issues a message and then sends it to their NEFT Service Center.

3. NEFT forwards this message from your bank to NEFT Clearing Center which is operated by the National Clearing Cell and it is part of it with the Reserve Bank of India in Mumbai and it is included in it next available In branch of transaction

4. After this, the NEFT Clearing Center sort out all the funds transfer transactions according to its bank and some of those entries are decorated in such a way that the banks on which your money needs to go should be sorted easily. NEFT Service Center then receives messages where they get sorted in all the entries, and they get messages from NEFT Clearing Center about money, where they are directed to send funds to the receiver's account.

NEFT Transfer Fees and Charges

The point here is that the recipient bank does not charge you any fee for the NEFT transaction. But for a sender, sending bank charges them for NEFT Transaction. You will get the following information about how much they charge.

Transaction Amount                                                       NEFT Charges
Amounts Rs 10000 to Rs 2.50 + Applicable GST
Amounts Rs 10000 up and up to Rs 1 lakh                        Rs 5 + Applicable GST
Amounts Rs 1 lakh up and up to Rs 2 lakh                        Rs 15 + Applicable GST
Amounts Rs 2 lakh up and up to Rs 5 lakh                        Rs 25 + Applicable GST
Amounts Rs 5 lakh up and up to Rs 10 lakh                        Rs 25 + Applicable GST

Note: - These charges vary from time to time. Therefore, consult your bank before sending the NEFT.

Timings of NEFT Transactions:

If you talk about the time now, NEFT works in hourly batches, so these work centers work between operational hours which are (8:00 AM to 7:00 PM in normal weekdays and 8 am to 1 pm Saturdays In). It consists of 8 to 6 batches, one to do one after another. Hence the money is transferred from Monday to Saturdays (except for 2nd and 4th Saturday of the month) from 8:00 AM to 6:30 PM. In addition, NEFT transactions are not available in public and bank holidays.

Public Holidays When NEFT transactions can not be completed, it is like Republic Day, Good Friday, Annual Closing of Banks, RBI's Annual Closing of Accounts, Ramzan Id (Id-ul-Fitr) / Ratha Yatra, Independence Day, Dasara / Vijaya Dashami and Muharram

Who can transfer funds through NEFT?

Any Firm, Individual, Corporation can use NEFT to transfer funds from one bank account to another bank account, but the point of attention is that they should have a Bank Account in that bank branch and NEFT in that Bank Branch. Facility must also be enabled / available.

Also know that you do not have to have a Bank Account. If no one has a bank account in the bank branch and even if he wants to fund transfer through NEFT, NEFT Instruction Slip can be funded and fund transfer. But in the form of funds transfer through NEFT, the amount can be transferred to a maximum amount of Rs 50,0000 in a transaction.

Who can receive funds by NEFT?

These works can be received by individual NEFT, such as Individual, Firm, Corporation, which has a Bank Account in the Bank Branch. But it is mandatory for the Beneficiary Customer to have a Bank Account in that Bank Branch, in which the NEFT Facility is enabled / Available.

What are the benefits of NEFT?

• Through NEFT, any firm, individual, corporation etc. can send money from one account to another.
• Here, the beneficiary customer (who are sent money) does not have to go to the bank branch to receive the fund and neither do any kind of paper formalities.
• Fees are very low in the NEFT.
• By using Internet Banking, and anywhere, fund transfer can be done. They are very safe and secure. And if your transaction is not completed for any reason, then you do not need to panic, because in such a way your money is not lost anywhere but also sent back to the account sent.
• This is more useful for Low Value Transaction.
• There is no additional cost to the receiver here.
• Here every Batch is one hour.

NEFT FAQs

1. What is NEFT?
The full form of NEFT is National Electronic Funds Transfer, this is the process of an electronic fund transfer, through which money can be easily transferred from one bank account to another.

2. Is the IFSC code mandatory for all NEFT transactions?
the answer is yes. It is very important to have an IFSC code for any NEFT Transaction.

3. Are all banks having NEFT facility?
No. NEFT is not available on all the banks.

4. How can a customer know whether his bank or payee bank is part of NEFT or not?
Banks are NEFT-enabled from all of these information, you can get all this information from the Reserve Bank of India website.

5. How much time does NEFT transactions take to settle?
All fund transfer transactions are processed in the batch-wise format and the money is credited within 2 working days.

Top banks who provide NEFT facility

• ICICI NEFT
• SBI NEFT
• Central Bank of India NEFT
• Bank of Baroda NEFT
• HDFC NEFT
• Axis Bank NEFT
• Punjab National Bank (PNB) NEFT
• Union Bank of India NEFT
• Indian Overseas Bank (IOB) NEFT
• Syndicate Bank NEFT