There used to be a time not very long ago when sending money from one account to another, whether in the same city or another city, used to be a long and tiring process.
It used to be an eternity before you could actually get the money to move. Today, it’s only a matter of just a few minutes, or at the max, an hour, and you can get the money transferred. All thanks to NEFT.
We have compiled a list of frequently asked questions regarding NEFT. Read on!
What is NEFT?
NEFT is an acronym for National Electronic Funds Transfer (NEFT). It is a nation-wide system which helps individuals, firms and corporates to electronically transfer funds from any bank branch to any individual, firm or corporate account with any other bank branch in the country.
How do I transfer money using NEFT?
Here’s your step-by-step guide to transferring money using NEFT:
To initiate fund transfer using NEFT, first and foremost, you need to have all the information about the person or merchant to whom you want to transfer the money, including the beneficiary’s name, account number, account type, and Indian Financial System Code (IFSC).
Log in to your net banking account and find the tab for third-party transfers. In that section, you will get options such as- ‘transfer within the bank’, ‘transfer to other banks’ and ‘transfer via card pay’. In the request section, select the option to add a beneficiary to your account.
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Once you select the ‘add beneficiary’ option, you will get two more choices: ‘add beneficiary within the bank’ or ‘add beneficiary of another bank’.
If your friend or merchant has an account in the same bank, go for the first option. Else, go for the second one. After that, enter the bank account details of the beneficiary. These include the account number, name and IFSC code. Post that, you will receive a one-time password from your bank to confirm the addition of a beneficiary.
Once you confirm, the beneficiary account will get active within a few minutes to a few hours, depending on your bank.
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Once a beneficiary account is added and active, the bank will send you an SMS/email. To send money using the NEFT system, simply log in to your account and select whether you want to send money to an account within or outside your bank.
To send money using the NEFT system, simply log in to your account and select whether you want to send money to an account within or outside your bank.
Select the account number from which you want to transfer the funds and then choose the account number, or beneficiary, to whom you want to send the money.
Enter the amount you want to send. After you confirm the transaction, the payment should reach the beneficiary in about half an hour. NEFT transaction charges are small and depend on the amount being sent.
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Are all bank branches in the country part of the NEFT funds transfer network?
Not all bank branches in the country are part of the NEFT funds transfer network. To be a part of the NEFT funds transfer network, a branch has to be NEFT- enabled.
Who can transfer funds using NEFT?
Individuals, firms or corporates having accounts with a bank branch can transfer funds using NEFT. Individuals without a bank account can also transfer money using NEFT. They can deposit cash at any NEFT-enabled branch with instructions to transfer funds using NEFT. Simple!
Such customers are also given a separate transaction code in the NEFT system to transfer their funds to the beneficiaries. In order to do that, they have to furnish full details including their complete address, telephone number, etc.
Thus NEFT helps you initiate fund transfer transactions even without the need for having a bank account.
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Who can receive funds through the NEFT system?
Individuals, firms or corporates holding accounts with an NEFT-enabled bank branch can receive funds through the NEFT system.
It also helps in transfer of money from India to Nepal under the Indo-Nepal Remittance Facility Scheme. The scheme allows you to transfer funds from any of the NEFT-enabled branches to Nepal, regardless of whether the receiver holds an account with a bank branch in Nepal or not. The scheme also allows beneficiaries to receive money in Nepalese Rupees.
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What is the limit on the amount that could be transferred using NEFT?
The important feature of NEFT is that there is no limitation on the amount that can be transferred, except for the walk-in customers who do not hold accounts as well as those remitting funds under the Indo-Nepal Remittance Facility Scheme.
What are the operating hours of NEFT?
Currently, NEFT operates in hourly batches. There are about twelve settlements starting from 8 am to 7 pm on week days (Monday to Friday) and six settlements from 8 am to 1 pm on Saturdays.
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Pay your card dues too!
You can also pay your Credit Card dues to the card issuing bank using the NEFT system. A separate Transaction Code has been fixed in the NEFT system in order to enable the payment of Credit Card dues to the card-issuing bank.
The remitter also needs to quote the IFSC of the beneficiary card-issuing bank to initiate bill-payment transactions via NEFT.
Now that you know all about NEFT fund transfer, how about exploring our amazing Credit Card and loan offers?