The National Electronic Funds Transfer (NEFT) is a money transfer system that allows the customers to transfer money, electronically, from their accounts to other accounts in the same bank or any other networked bank. Apart from individuals, Corporate organizations and firms can also use the facility of National Electronic Funds Transfer system for transferring funds from one account to another.
The basic requirement of transferring fund through NEFT is a conducting bank and a destination bank. Most of the banks are allowed to carry out NEFT transactions, as per RBI regulations. RBI organizes the records of banks that carry of NEFT transactions, through a centralized database. In order to be able to make NEFT transactions through net banking, you have to register the beneficiary first. For the same, a customer is supposed to provide his/her basic information such as, name, bank’s name, account number, IFSC code and so on. Only after providing these information, the fund transfer can authorized and processed.
Features of NEFT
- Maximum amount per transaction is limited to Rs.50,000/-
- NEFT operates batches per hourly.
- There are 12 settlements in a day between 8:00am to 7:00pm on weekdays (Mon ~ Fri).
- There are 6 settlements on Saturday between 8:00am to 1:00pm
Through Net Banking, National Electronic Funds Transfer transactions can be made anytime, even on public holidays except for Sundays. But the settlement will be done as per the RBI published timing, listed above.
Recommended Read (Reserve Bank of India Website Links):
- National Electronic Funds Transfer (Guidelines and Details)
- List of NEFT enabled bank Branches
- Frequently Asked Questions (RBI Website)