Karnataka Bank Limited, a prominent ‘A’ Class Scheduled Commercial Bank in India, has been an integral part of the country’s financial landscape since its establishment on February 18, 1924, in Mangaluru. Karnataka Bank is a leading financial institution known for its diverse and tailored products and services, catering to both individual and business customers. This article explores the details and workings of Karnataka Bank NEFT Form, a crucial component of modern banking in India. It offers insight into its functioning, charges, timings, and frequently asked questions.
Details to be filled in the Karnataka Bank NEFT form
To initiate a funds, transfer through the Karnataka Bank NEFT system, you need to go through a fillable NEFT form of Karnataka Bank with specific details.
Here is a breakdown of the information you’ll be required to provide on the Karnataka Bank NEFT Form:
- Beneficiary Name: Specify the name of the person or entity to whom you intend to send the funds.
- Account Type: Indicate the type of account held by the beneficiary (e.g., savings, current, etc.).
- Account Number: Provide the beneficiary’s account number where the funds are to be credited.
- Beneficiary Bank Branch with IFSC Number: Mention the branch of the beneficiary’s bank and its unique IFSC to ensure accurate routing.
- Authorisation: As the remitter, you authorise your bank to debit your account for the specified amount and remit it to the beneficiary.
- Contact Details: Provide your complete address and telephone number. This information is essential for refunding the money in case the transaction faces issues or is rejected.
How does the Karnataka Bank NEFT system operate?
The operation of the Karnataka Bank NEFT system involves several steps, allowing individuals, firms, and corporate bodies to transfer funds efficiently.
Here’s a breakdown of how the NEFT system operates:
Step 1
- Those wishing to initiate or transfer funds through NEFT need to complete an application form. This form should include details such as the beneficiary’s name, account type, account number, the beneficiary bank branch, and the IFSC number of the bank branch.
- Karnataka Bank NEFT form PDF is available to download from the Karnataka Bank NEFT form download section, or else application forms are available at the originating bank branch.
- The account holder authorises the branch to debit from their account and remit the specified amount to the beneficiary.
- Customers with net banking can initiate the funds transfer online. Additionally, certain banks provide NEFT services via ATMs.
- Walk-in customers must provide additional contact details, their complete address and telephone number to the branch. This information is essential for refunding the money in case the credit cannot be afforded to the beneficiary’s bank account or if the transaction is rejected or returned for any reason.
Step 2
- The originating bank branch prepares a message containing the transaction details.
- This message is then sent to the pooling centre, which is also known as the NEFT service centre.
Step 3
- The pooling centre forwards the message to the NEFT clearing centre, which is operated by the National Clearing Cell at the Reserve Bank of India, located in Mumbai.
- The message is included in the next available batch of transactions.
Step 4
- At the clearing centre, the funds transfer transaction messages are sorted destination bank-wise.
- Set-off entries are prepared to receive funds from the originating banks and provide funds to the destination banks.
Step 5:
- The bank-wise remittance messages are then forwarded to the destination banks through their respective pooling centres.
- The destination banks receive these remittance messages from the Clearing Centre and proceed to credit the beneficiary accounts.
Karnataka Bank NEFT Charges
Inward Transactions at Destination Bank Branches
- These are transactions where funds are credited to the beneficiary’s account.
- There are no charges imposed on the recipients. The service is entirely free.
Charges for the Sender on Outward Transactions at Originating Bank Branches
The charges for remitters (those sending money) are based on the transaction amount:
- For transactions up to Rs. 10,000: A fee of Rs. 2.25 plus applicable GST (Goods and Services Tax).
- For transactions ranging from above Rs. 10,000 to Rs. 1 lakh: A fee of Rs. 4.75 plus GST.
- For transactions ranging from above Rs. 1 lakh to Rs. 2 lakhs: A fee of Rs. 14.75 plus GST.
- For transactions above Rs. 2 lakhs: A fee of Rs. 24.75 plus GST.
Additional charges are applicable under the Indo-Nepal Remittance Facility Scheme
- For remittances up to Rs. 5,000: A charge of Rs. 50.
- For remittances above Rs. 5,000: An amount of Rs. 75.
Karnataka Bank NEFT timings
Transactions can be initiated on weekdays (Monday to Saturday) from 8 a.m. to 7 pm.
What is the processing time for NEFT in Karnataka Bank?
Weekdays (Monday to Saturday): If you make a transaction between 8 am and 7 pm, the receiver should get the credit within two hours. Let’s say a transaction is made at 8 a.m. The bank of the receiver has to process it within 2 hours. That’s called B+2. If there are any returns, they must be remitted to the sender’s bank within B+2, which is before the 11 a.m. batch.
Karnataka Bank NEFT Form FAQ’s:-
For a bank branch to be part of the NEFT fund transfer system, it needs to be NEFT-enabled and have an IFS code. By November 2009, about 62,000 branches from 94 banks out of roughly 75,000 bank branches were ready for NEFT.
Anyone with a bank account can use NEFT. This includes individuals, businesses, and corporations.
NEFT lets you clear credit card bills. It uses a particular Transaction CodeĀ (No. 52). This code makes paying your credit card bills to member banks easy. If you want to use NEFT for bill payments, you need to know your card bank’s IFSC.
No, NEFT works like a credit-push system. This means you can only start transfers to send money to a certain receiver.
No, NEFT cannot be used for international remittances. However, there is an option to send outward remittances to Nepal through the Indo-Nepal Remittance Facility Scheme.