What Is NEFT | Timings & Difference In RTGS And NEFT

If you do banking-related transactions then you must have heard about NEFT, but if you do not have complete info on this topic, then in this post we will tell you in detail about what is NEFT and how it works. Huh. Currently, everyone is using Digital Payment, whether it is to transfer money from one account to another or make different kinds of payments.

The banking system has changed a lot since the introduction of digital payments. Now people can easily do all their banking-related work easily sitting at home so that they do not need to go to the bank anymore.

There are ways to transfer funds online, NEFT, RTGS, and IMPS. In this post, we are going to give complete information related to NEFT. So let’s know about it in a little detail.

What Is NEFT?

NEFT is a process through which you can transfer money from one bank account to another bank account electronically. With the help of NEFT, you can transfer funds from a minimum of 1 rupee to a maximum, and for this, you can use both online and offline methods with the help of Net Banking. It takes at least 2 to 3 hours to transfer money from NEFT and with the help of this, you can transfer your money to another account in a very secure way or receive money from another account to your account. The facility of NEFT is made available to the bank customers of India and this fund transfer system was started in the year 2005. This fund transfer system is operated by RBI (Reserve Bank of India), due to which it is also quite safe.

NEFT Full Form – National Electronics Fund Transfer

How does NEFT Works?

You can complete NEFT in two ways, one is online and the other is offline. In the offline method, you have to go to the bank and fill out a form in which you have to give your Beneficiary Account details. In the same online method, you have to activate Net Banking first and after that, you have to add any person to whom you want to transfer funds as Beneficiary in your account and for this, you have that person’s Bank Details and IFSC Code, etc. It is necessary be When you transfer funds to someone through NEFT, it takes some time to transfer which can be up to 2 to 5 hours. But if your fund is above 2 lakhs then you can transfer it through RTGS because the fund is transferred immediately in RTGS.

What Is NEFT

Ways to Transfer NEFT Funds

We will give you complete information about both Online and Offline methods of NEFT Fund Transfer.

Online Procedure

1. First of all you have to log in to your Net Banking Account. If you do not have a Net Banking Account, then you can register by visiting your bank website.

2. Now you have to add Beneficiary i.e. any person to whom you want to transfer funds as Payee. For this, you will also need some details of the Beneficiary, which are mentioned below.

  • Account Holder Name
  • Account Number
  • Account Type
  • IFSC Code

After entering the details, the bank will check those details which may take about 12 to 24 hours. When the Beneficiary Details are verified by the bank, then you have to follow the next step.

3. When your Payee is added, after that you have to select NEFT for Fund Transfer.

4. Now you have to select the account where you have to transfer money, ie here you have to select Payee and enter the amount you want to transfer.

5. Now you will get the option to add some Remark which is optional. After adding the amount, you have to click on submit.

After completing these steps, your fund is transferred and it may take 2 to 5 hours to transfer it to another account. The process of transferring funds goes on as per the time prescribed by RBI.

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Offline Procedure

1. First of all go to the bank and take the NEFT / RTGS form.

2. Fill in all your details carefully in the form.

3. After that, you have to enter the Beneficiary Details ie the person to whom you want to transfer the money, related to the information given below.

  • Account Holder Name
  • Account Number
  • Account Type
  • IFSC Code
  • Bank Name
  • Branch Name
  • Amount – The amount you want to transfer.

Note:- Keep in mind that for NEFT, you must have all the above-mentioned information of the Beneficiary correct.

Fees And Charges | NEFT

If you transfer funds to any person, then Recipient Bank does not charge any fee, but Sender Bank does charge some fee for transferring money, about which information is given below.

Transaction Amount NEFT Charges
RS. 1 To Rs. 10000 Rs 2.50 + Applicable GST
Amounts Rs. 10000 To Rs. 1 lakh Rs 5 + Applicable GST
Amounts Rs. 1 lakh To Rs. 2 lakh Rs 15 + Applicable GST
Amounts Rs. 2 lakh To Rs. 5 lakh Rs 25 + Applicable GST
Amounts Rs. 5 lakh To Rs. 10 lakh Rs 25 + Applicable GST

Note:- Keep in mind that these Charges keep changing from time to time, so before doing NEFT, do take information about it from your bank once.

Timing of NEFT Transaction.

If we talk about NEFT Timing, then let us tell you that it works as Hourly Batches on the basis of Bank Timing.

Fund transfer time with the help of NEFT is from 8:00 am to 6:00 pm on weekdays i.e. Monday to Saturday (except 2nd and 4th Saturday only). You cannot transfer funds through NEFT under Sunday and Other Bank Holidays.

Difference Between RTGS And NEFT

You can easily understand the difference between RTGS and NEFT through the table given below.

Criteria NEFT RTGS
Value It is mainly used for the transition of Lower and Medium Range. It is mainly used for High-Value Transactions.
Transaction Amount There is no Minimum Limit here but there is a Maximum Limit. Here the Minimum Limit is Rs 2 Lakhs while the Maximum Limit is not.
Settlement The transaction is settled in batches. Here the transaction is settled individually.
Timing Here Settlement is done on an Hourly Basis during Bank Working Hours. Here all the processes are dealt with in real-time.

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NEFT | Benefits

  • Through NEFT, any corporation, individual, and firm can transfer money from one account to another.
  • In NEFT, the receiver does not have to pay any extra cost.
  • Each batch in this is of 1 hour.
  • NEFT is more useful for Low-Value Transactions.
  • Fees or Charges are very less in this.
  • Using Internet Banking, you can transfer funds from anywhere and anytime.
  • If ever for some reason your transaction is not completed, then there is no need to panic because in this situation your fund gets credited again to your account.

Top Banks Which Have NEFT Facilities Enabled

  • ICICI NEFT
  • Central Bank of India NEFT
  • Bank of Baroda NEFT
  • HDFC NEFT
  • Axis Bank NEFT
  • Punjab National Bank (PNB) NEFT
  • Indian Overseas Bank (IOB) NEFT
  • Syndicate Bank NEFT
  • SBI NEFT
  • Union Bank of India NEFT

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