NEFT is an abbreviation for "National Electronic Funds Transfer". The NEFT is a nation wide payment system facilitating one-to-one funds transfer. It operates on a deferred net settlement (DNS) basis and settles transactions in batches. The settlement takes place with all the transactions received before a certain cut-off time. NEFT is not available on the bank holidays, RBI holiday and Sunday.
- Minimum amount - Rs. 1
- Maximum amount - No limit, but generally RTGS is used for transfer of Rs 2,00,000
- Transaction charges - Not more than Rs 2.5/- plus service tax for any transfer up to Rs 10000, not more than Rs 5/- plus service tax between Rs 10000 and Rs 1 lakh, not more than Rs 15/- plus service tax between Rs 1 lakh and Rs 2 lakh and not more than Rs 25/- plus service tax for those above Rs 2 lakh.
- Time limit - The transactions are processed in hourly batches. There are 12 settlements from 8 A.M. to 7 P.M. on the weekdays (Monday - Friday) and also on working Saturdays i.e. Saturdays other than 2nd & 4th Saturdays.
Benefits of NEFT Transfer
- Funds transfer through NEFT is a safe and secure process.
- Funds get transferred very fast i.e. usually in a few minutes.
- You need not draw the physical cheque or send demand draft to the beneficiary for fund transfer from your account.
- The beneficiary will not have visit his bank branch to deposit the cheque/ DD in his account.
- No fear of loss/ theft of cheque/ DD.
- It saves cost and time.
- The customer can make intrabank as well as interbank payments.
- You get notified about the credit confirmation via SMS.