NEFT

NEFT or National Electronic Fund Transfer is a nation-wide electronic fund transfer system that lets you transfer money from one bank account to another. It is a safe and hassle-free process monitored by RBI. All NEFT settlements are made in a batch-wise manner. Funds can be sent through NEFT to the accounts of all Indian NEFT-enabled banks. To initiate a NEFT transfer, you would need the account number and name of the receiver along with the name of the bank branch and its IFSC Code.

NEFT Benefits	NEFT Timings	NEFT Transaction Limits
Safe and secure Economical Paperless Reliable and error free Organized and batch-wise settlement	9.00 a.m. - 7.00 p.m. (weekdays) 9.00 a.m. to 1.pm (Saturdays)	No minimum or maximum transaction limit Maximum Rs.50,000 per transaction

NEFT Fund Transfer Procedure

Here is the procedure for transferring funds through the NEFT method:

Follow this procedure to transfer funds via NEFT online:

1: Login to your net banking account using your ID and password.

2: Add the beneficiary as a payee in the 'Add New Payee' section. Enter the following details about the beneficiary :

• Account Number.
• Name.
• IFSC Code.
• Account Type.

3: After the payee is added, select NEFT as the mode of Fund Transfer.

4: Choose the account you wish to transfer money from. Select the beneficiary, enter the amount and add remarks if you wish to.

5: Click on submit.

NEFT Transfer: Charges

The sender has to pay a nominal charge for making NEFT transfers. The recipient need not pay anything. Here are the charges for sending money using NEFT:

Transaction Amount	NEFT Charges
Up to Rs 10,000	Rs.2.50 + GST
Above Rs 10,000 and up to Rs 1 lakh	Rs.5 + GST
Above Rs 1 lakh and up to Rs 2 lakh	Rs.15 + GST
Above Rs 2 lakh and up to Rs 5 lakh	Rs.25 + GST
Above Rs 5 lakh and up to Rs 10 lakh	Rs.25 + GST

NEFT Transfer: Timings

NEFT functions in hourly batches currently. Hence, the facility is available during the service centers operational hours. Eight batches of transaction operate between 8 AM to 7 PM on weekdays and six batches on Saturdays between 8 AM to 1 PM. NEFT doesn't function on the 2nd and 4th Saturdays, which are bank holidays or on any other public or bank holiday.

However, the sender can queue in the transaction and wait for NEFT to pick it up on their next working hour and day.

Here are the timings for NEFT in popular banks:

Name of the Bank	Monday to Friday NEFT Timing	Saturday Timing
State Bank of India	8:00 AM - 7:00 PM	8:00 AM - 1:00 PM
HDFC Bank	8:00 AM - 6:00 PM	8:00 AM - 6:00 PM
ICICI Bank	8:00 AM - 6:30 PM	8:00 AM - 6:30 PM
CitiBank	8:00 AM - 7:00 PM	8:00 AM - 1:00 PM
Kotak Mahindra Bank	8:00 AM - 6:00 PM	8:00 AM - 12:00 PM
Bank of Baroda	9:00 AM - 6:45 PM	9:00 AM - 6:45 PM
Yes Bank	9:00 AM - 4:30 PM	9:00 AM - 12:00 PM
Union Bank	8:00 AM - 6:30 PM	8:00 AM - 6:30 PM
Punjab National Bank	8:00 AM - 5:00 PM	8:00 AM - 12:00 PM

NEFT transactions are unavailable on Sundays, 2nd and 4th Saturdays and all bank holidays. Here is a list of the days when you cannot avail these facilities:

Date	Holidays	Day	States
Jan 2	Mannam Jayanti	Tuesday	Kerala
Jan 14	Bhogi/Pongal	Sunday	Several states
Jan 15	Sankranti	Monday	Several states
Jan 16	Uzhavar Tirunal	Tuesday	Tamilnadu & Puducherry only
Jan 26	Republic Day	Friday	National Holiday
Feb 14	Maha Shivaratri	Wednesday	Several states
Mar 2	Holi	Thursday	Several states
Mar 18	Ugadi	Sunday	Across Andhra Pradesh and Karnataka
Mar 26	Rama Navami	Monday	Several states
Mar 29	Mahaveer Jayanti	Thursday	Several states
Mar 30	Good Friday	Friday	Several states
Apr 14	Ambedkar Jayanti	Saturday	Several states
Apr 18	Basava Jayanti	Wednesday	Karnataka only
May 1	May Day	Tuesday	Several states
May 7	Rabindranath Tagore's Birthday	Monday	West Bengal, Tripura
Jun 8	Ramadan	Friday	Several states
Aug 15	Independence Day	Wednesday	National Holiday
Aug 22	Bakrid	Wednesday	Several states
Aug 24	Onam	Friday	Kerala
Sep 13	Ganesh Chaturthi	Thursday	Several states
Oct 2	Gandhi Jayanti	Tuesday	National Holiday
Oct 8	Mahalaya Amavasya	Monday	Several states
Oct 18	Ayudha Pooja	Thursday	Mostly south Indian states
Oct 19	Durga pooja/Vijayadashami	Friday	Several states
Nov 6	Naraka Chaturdashi	Tuesday	Karnataka
Nov 7	Deepawali	Wednesday	Many states
Dec 25	Christmas	Tuesday	All states

The Difference between NEFT and RTGS

NEFT and RTGS are both regulated and managed by the RBI. NEFT is essentially used for lower value fund transactions that are not settled immediately and the services are not available on bank holidays. The transactions are settled in eleven batches on weekdays and six batches on Sundays. NEFT transactions do not have a minimum limit but one can use this facility to transfer up to Rs.50,000. IMPS transaction facility can be availed on a 24/7 basis, even on bank holidays, unlike NEFT and RTGS. This facility can be used for transferring up to Rs.2 lakh.

On the other hand, RTGS transactions are settled on a real-time basis. There is no specified maximum limit, but a minimum limit is capped at Rs. 2 lakh. Banks usually have the discretion to set their own upper limit for RTGS as the RBI hasn't set any ceiling cap.

Paying Credit Card Bills using NEFT

• Log in to your bank's net banking account.
• Add the credit card account as a beneficiary using the IFSC code of the credit card issuer.
• Enter the account number (the credit card number) and other required details.
• Wait for the credit card to be registered as a payee.
• Select the 'NEFT Funds Transfer' option; make a fund transfer by entering the bill amount

Step	Detail	Process
1	Payee name	The name printed on the credit card
2	Payee account number	The credit card number printed below the name
3	Bank name	The name of credit card issuer/ bank
4	IFSC code	IFSC of the credit card issuer/bank

FAQs

What is NEFT?

NEFT stands for National Electronic Funds Transfer. NEFT is an RBI-operated electronic fund transfer process. It can be used for transferring money from one bank account to another.

Is the IFSC code mandatory for all NEFT transactions?

Yes, the IFSC, code along with other details, is mandatory to initiate fund transfers.

Do all banks provide NEFT facility?

No, only those banks that are part of the NEFT network.

How can one find out if a bank is part of the NEFT work?

The RBI website has a list of all NEFT-enabled banks.

How long does it take the banks to settle NEFT transactions?

All fund transfer transactions are processed in a batch-wise format. It may take maximum 2 working days.