If you have an account in your bank and you keep doing normal transactions then you must have heard about the term NEFT and if you use internet banking, then you will be well aware of this term, if not, then let’s go about it Let’s talk.
Actually, NEFT is the full name of the National Electronic Funds Transfer and it is a way to send money through any bank to the account holder in another bank. We are giving you below information about what is NEFT and how it works –
NEFT Information –
NEFT is a versatile method through which you can transfer money electronically to any client or your client in a very short time. Though it takes time still it is very less in view of convenience. This is completely different from RTGS because the transfer of money in RTGS takes place in real-time whereas it involves transferring your money according to a fixed batch of time ie after a certain time interval.
This facility was started in November 2005 and in today’s time, you can avail of this facility in almost every national-level bank.
According to the RBI, it is “a nationwide payment system for the transaction of money between one person and another, even if the account holder does not keep his account in any bank.”
How NEFT works – It takes several steps –
- First of all, the account holder gives the details of the person to whom he wants to send the money in a slip to the bank, giving details of the name of the money received, the account number, the IFSC of the bank his account is in, as well as to his bank account Gives the right to debit to the bank.
- This information is sent by the bank to NEFT Service Center, also known as the pooling center.
- The pooling center sends this information to NEFT Clearing Center, which is operated by the National Clearing Cell, RBI in Mumbai.
- The information received at the clearing center is sorted according to the branch in which the funds are to be transferred and all this process is done according to a fixed time batch.
- According to the information received, after completing the fund transfer process, the money is deposited in the receiving account and the system sends its information to the bank through which the transaction has been started, from which this information is given to the customer. Is
- Banks which provide Internet Banking facility to their customers can also make transactions through NEFT from the bank’s website.
Charges – Each bank charges for NEFT and it is something like this. *
- up to ₹10,000 (not exceeding) : ₹2.50 (+ Service Tax)
- above ₹10,000 up to ₹1 lakh (not exceeding) : ₹5 (+ Service Tax)
- above ₹1 lakh and up to ₹2 lakhs (not exceeding) : ₹15 (+ Service Tax)
- above ₹2 lakhs : ₹25 (+ Service Tax)
Note – It is possible to change the status of the bank and change in the rules of the bank in these fixed fees, plus no fee is to be paid to the beneficiary who received the money, while the payment rates are payable to the bank like the remitter.
Timings – We have talked about NEFT that it is done in batch process and you can also call it settlement timing. These batches are by the hour and this timing is something like this –
- Monday to Saturday (Except 2nd and 4th Saturday) – 8:00 AM to 6:30 PM
If a transaction is started after the scheduled time, it ends on the next working day.
So this is NEFT Information and to get updates from us, you can take an email subscription or follow us on Facebook. You can also email us with any of your questions.