1. What is NEFT?
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals can electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country participating in the Scheme.
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2. Who can transfer funds using NEFT?
Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals who do not have a bank account (walk-in customers) can also deposit cash at the NEFT-enabled branches with instructions to transfer funds using NEFT. However, such cash remittances will be restricted to a maximum of ₹ 50,000/- per transaction. Such customers have to furnish full details including complete address, telephone number, etc. NEFT, thus, facilitates originators or remitters to initiate funds transfer transactions even without having a bank account.
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3. Who can receive funds through the NEFT system?
Individuals, firms or corporates maintaining accounts with a bank branch can receive funds through the NEFT system. It is, therefore, necessary for the beneficiary to have an account with the NEFT enabled destination bank branch in the country.
The NEFT system also facilitates one-way cross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme. A remitter can transfer funds from any of the NEFT-enabled branches in India to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees.
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4. Is there any limit on the amount that could be transferred using NEFT?
No. There is no limit, either minimum or maximum, on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to ₹ 50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.
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5. Operating Hours for NEFT:
Presently, NEFT operates in hourly batches:
- 8 am to 7 pm on week days
- 8 am to 1 pm on Saturdays (Except 2nd and 4th Saturday and bank holidays)
6. Charges for NEFT:
a. upto Rs. 10,000 - Rs. 2.50 + applicable GST
b. Rs. 10,001 to 1,00,000 - Rs. 5.00 + applicable GST
c. Rs. 1,00,001 to 2,00,000 - Rs. 15.00 + applicable GST
d. more than Rs. 2,00,000 - Rs. 25.0 + applicable GST
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7. What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effected?
The remitting customer has to furnish the following information to a bank for effecting a NEFT remittance:
i. Amount to be remitted
ii. Remitting customer's account number which is to be debited
iii. Name and IFS Code of the beneficiary bank
iv. Name of the beneficiary customer
v. Account number of the beneficiary customer
vi. Sender to receiver information, if any
vii. Mobile number / email id (for NEFT to receive credit confirmation)
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