An electronic fund transfer system controlled by the apex body of RBI, NEFT is a highly safe and fairly simple to understand mode of payment where transfer happens directly from one bank account to another bank account.
This post talks about NEFT meaning, NEFT charges and time taken for transfers, NEFT limit, NEFT full form and more. Let’s commence.
How NEFT works?
NEFT is an electronic system of transferring funds from one bank account to another bank account. The funds are transferred directly via RBI and thus carry thick security wraps.
Let’s understand how a transaction via NEFT is processed step-by-step:
- NEFT request is made either online (mobile banking or net-banking) or offline at the branch.
- The bank (where the sender’s account is) furthers this request to its pooling centre, or NEFT Service Centre.
- From NEFT Service Centre (of the respective bank) then forwards this message/request to the NEFT Clearing Centre. This is controlled by RBI.
- The request is then checked and sorted by the NEFT Clearing Centre. Next, this is forwarded to the receiver (beneficiary) bank’s NEFT Service Centre.
- Upon receiving the request to inward remittance request (i.e. the clearance to transfer funds in the beneficiary’s bank account), the requested amount is credited to the beneficiary customer’s account.
This entire process takes around 30-60 minutes and seldom go up to 4 hours. There are 48 half-hourly NEFT batches in a day.
NEFT Bank Timings
NEFT or National Electronic Funds Transfer, is a system that operates on a 24×7 basis. This means that you can make an NEFT request at any time. However, there’s a small catch here – this round the clock NEFT window is open only for online requests. As soon as you make the NEFT request online, the money request is debited from your account and it takes no more than 2 hours to reflect in the beneficiary’s bank account.
If you want to make an NEFT request at the branch or in cash, you need to visit your branch only during the banking hours.
How to use NEFT?
There are two ways to make an NEFT payment:
- Offline (At the branch)
This can be done via cheque or cash. If done in cash, there is a limit of Rs. 50,000 per transaction. For both the options of cheque and cash, you need to submit a duly filled NEFT form available at the branch.
Here’s the list of participating banks for NEFT by RBI – https://www.rbi.org.in/scripts/neft.aspx
- Online
- Net-Banking
- Mobile Banking
For either mobile banking or netbanking mode, NEFT window is open 24×7, i.e. throughout the day, irrespective of any holiday.
For online NEFT, you need to add a beneficiary to whom the transfer is to be done. This process takes minutes but to add a beneficiary, it may take around 30-60 minutes.
Most of the banks have almost the same process for online NEFT. We are listing some of the popular banks below. Please click to check their NEFT process and more:
NEFT Transfer Limit
There are no transaction limits set for transfers done using the NEFT System. This is as per the RBI directives. However, banks are given the liberty to impose restriction on the maximum amount that can be transacted at one go. This is based on the bank’s risk sensitivity; i.e. how much risk it can take.
For cash transactions at the bank – Rs. 50,000 per transaction
If you want to transfer a higher amount at the branch, you can use the RTGS mode of payment. Apart from the minimum transfer limit, there are other significant differences between an RTGS and IMPS mode of payment. Compare these two and see which methods suits your needs the best.
Information Required for NEFT Transaction
Customers are required to provide the following essential details for using the NEFT system, apart from the amount to be remitted:
- Remitting customer’s account details
- Beneficiary’s Name
- Beneficiary’s Bank & Branch Name
- Beneficiary’s Bank IFSC
- Beneficiary’s Account Number
- Beneficiary’s Account Type
- Remarks (Transfer description)
Eligibility Criteria – Who Can Use NEFT?
Individuals, firms and corporates having accounts with an NEFT participating bank can use the NEFT system for transfer or receipt of funds. Such transfers can be made within the same bank and to another bank as well.
Did You Know?
You can transfer money in cash to someone else’ bank account using the NEFT system, even if you do not have a bank account.
How to track NEFT transactions?
If you need to check the status of your NEFT request, please contact your bank’s NEFT Customer Facilitation Centre (CFC). This information is displayed on your bank’s official website.
Alternatively, you can check the RBI website for the updated list of CFCs.
NEFT Charges
As per the RBI, there are no charges levied on online NEFT done by savings account customers. Also, RBI does not levy any charges to banks to carry out NEFT transactions.
However, banks can levy NEFT charges when done at the branch. Check the table below for the maximum charges any bank can levy on offline NEFT transactions, as directed by RBI:
| Transaction Amount | Charges (+ Applicable GST) |
| Up to Rs. 10,000 | Less than or equal to Rs. 2.50 |
| Above Rs. 10,000 – Up to Rs. 1 lakh | Less than or equal to Rs. 5.00 |
| Above Rs. 1 lakh – Up to Rs. 2 lakhs | Less than or equal to Rs. 15.00 |
| Above Rs. 2 lakhs | Less than or equal to Rs. 25.00 |
While RTGS payments incur charges of Rs 25 and Rs 50 (maximum), IMPS charges are decided by the respective banks. Check our comparison study of NEFT vs IMPS to understand which mode suits you the best.
Note: Charges on such transactions incur GST as well.
Benefits of NEFT
There are many advantages to using NEFT system for transferring funds from one bank account to another, viz.:
- Available 24×7 all around the year (online)
- Accessible Pan-India
- Regulated by RBI, thus highly safe
- No minimum or maximum transaction limit set by RBI (banks may add capping on the maximum amount per transaction)
- No charges for online NEFT
- Payment of credit card bill, loan EMI, etc. can be done via NEFT
- Transfers to/from NRE and NRO accounts in India possible (subject to FEMA, 2000 guidelines)
- Transferred amount reflected within 2 hours in the beneficiary’s account
Difference between NEFT, IMPS and RTGS
How is NEFT different from RTGS or IMPS? Is NEFT safer than RTGS and IMPS? Which is the best mode of fund transfer – NEFT, RTGS or IMPS? Check the answers to these questions in the table below:
| Factors/Mode of Transfer | NEFT | RTGS | IMPS |
| Min. Transaction Amount | Re 1 | Rs 2 lakhs | Re 1 |
| Max. Transaction Amount | No Capping | No Capping | Rs 5 lakhs (except for SMS and IVR mode of transfer) |
| Online/Offline | Both | Both | Both |
| Time Taken to Transfer | Maximum 2 hours | Immediate | Immediate |
| Availability | Pan-India | Pan-India | Pan-India |
| Processing Charges | Online – No charges At the branch – max. Rs. 25 per transaction | Max. Rs. 49.50 per transaction | Vary from bank to bank |
For detailed comparison, read this: NEFT vs RTGS vs IMPS
Also check NEFT processes for other banks from the table below:
NEFT – FAQs
NEFT full from – National Electronic Funds Transfer.
NEFT limit per day is defined as such:
· Minimum limit – None
· Maximum limit – None by RBI; banks may specify as per their risk perception
· Cash transaction for those not having a bank account – Rs. 50,000 per transaction
Online NEFT – No charges to be levied as directed by RBI.
At the branch – Ranging from Rs. 2.50 to Rs. 25 per transaction. Click for detailed list of NEFT charges.
Online NEFT – 24×7 all around the year
At the branch – As per the bank timings
Yes, you can use the online NEFT system for fund transfers on Sunday. For at the branch transfer, visit your branch at its working hours only.
No. Not all the branches provide the NEFT mode to transfer funds. Please check the updated RBI list of participating banks here.
NEFT service is not extended for NRI customers having an account in a foreign country. However, transfers to and from NRE or NRO accounts can be done using the NEFT system.
While both NEFT and RTGS are electronic and centralized payment systems, the major difference lies in their transfer limits and time taken to transfer funds. NEFT – No transfer limit within 2 hours of time taken; RTGS – Min. transfer value of Rs. 2 lakhs (no max. amount capping) with immediate transfer of funds.
Yes. NEFT is a completely safe mode of transferring funds as every transaction through this system is regulated by the RBI clearing system. Is there’s any discrepancy, customers may directly write to RBI describing the issue with all the details and seek resolution.
Yes, you may contact the NEFT Helpdesk by RBI at:
Customer Facilitation Centre of RBI,
Primary Data Centre (PDC), RBI
CBD Belapur, Navi Mumbai
Maharashtra – 410210.
The amount is debited instantly from the sender’s account and it takes maximum 2 hours to reflect in the beneficiary’s account.
All NEFT transaction requests are regulated by the Reserve Bank of India.
Yes. You can transfer funds to a beneficiary’s bank account (member bank only) using the NEFT system. You will be asked to attach the necessary documents to support your transfer request which will inclide ID & Residence Proof along with your contact details. You can make a maximum cash transaction of Rs. 50,000 in such cases.
Yes. PAN is a mandatory requirement for carrying out the NEFT transactions. Your bank account is already linked to your PAN and if you go for cash transaction, you will be asked to provide your PAN in the list of documents required.
