What is NEFT?

NEFT full form is National Electronic Funds Transfer, an electronic payment system in India that facilitates the transfer of funds between bank accounts. Individuals, businesses, and organizations widely use it for various financial transactions, including salary disbursements, bill payments, and online purchases. NEFT transactions are processed in hourly batches, ensuring timely and secure settlement throughout the day. As a reliable and convenient method of transferring money, NEFT plays a vital role in the country's digital banking ecosystem.

You may also want to read: SBI NEFT Charges 2025 & PNB NEFT Charges 2025 

Advantages and Features of NEFT

Here are the key benefits of using NEFT (National Electronic Funds Transfer):

24/7 Availability: NEFT is operational around the clock, including weekends and holidays, allowing users to transfer funds at any time.

Nationwide Reach: Enables seamless fund transfers to any bank account across India.

Convenience: Transactions can be initiated remotely through the internet or mobile banking, eliminating the need for physical presence.

No Fixed Transaction Limit: While the Reserve Bank of India (RBI) does not impose a maximum transfer limit, individual banks may set their caps based on account type and risk assessment.

International Remittances: NEFT supports cross-border transfers to Nepal under the Indo-Nepal Remittance Facility, subject to certain conditions.

Support for NRE/NRO Accounts: Funds can be transferred to and from Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts.

No Branch Visits Required: All NEFT transactions can be conducted digitally, reducing the need for in-person bank visits.

Faster Processing: Typically quicker than traditional payment methods such as cheques or demand drafts.

Secure Transactions: Regulated by the RBI, NEFT operates through a secure electronic network, minimizing risks associated with physical cash handling. 

Who Can Use National Electronic Funds Transfer (NEFT)?

NEFT (National Electronic Funds Transfer) is available to a wide range of users in India, provided the transaction is conducted through a bank that is part of the NEFT network. Here’s a detailed overview of who can use the NEFT system:

Individuals with Bank Accounts

Account holders with savings or current accounts at NEFT-enabled banks can easily initiate fund transfers to other NEFT-participating bank accounts across India.

Businesses and Corporations

Companies and organizations can use NEFT to manage their financial transactions, including payments to vendors, clients, or inter-account transfers, making it a valuable tool for business banking.

Individuals without Bank Accounts

Even those without a bank account can use NEFT by visiting a participating bank branch. By depositing cash, they can initiate a one-time transfer, subject to a maximum limit of ₹50,000 per transaction.

Details Required for NEFT Fund Transfer

To successfully initiate an NEFT, ensure the following information is accurately provided:

• Beneficiary’s Full Name
• Beneficiary’s Bank Name
• Branch Name of the Beneficiary’s Bank
• Type of Account (e.g., Savings, Current)
• Beneficiary’s Account Number
• IFSC Code of the Beneficiary’s Bank Branch
• Amount to be Transferred
• Legal Entity Identifier (LEI) for both sender and beneficiary – required for eligible transactions, particularly those involving corporate or business entities
• Remarks or Payment Notes (optional) – useful for internal reference or specifying the purpose of the transaction
   

What Are the National Electronic Funds Transfer Charges?

NEFT transactions are generally free of charge for the receiving bank. The Reserve Bank of India (RBI) has waived processing fees for member banks initiating NEFT transactions. Furthermore, from January 2020 onwards, most banks have extended the benefit of free NEFT transfers to savings account holders for online transactions.

However, originating banks may levy charges on outward NEFT transactions, subject to the following maximum limits:

• Transactions up to ₹10,000: Maximum charge of ₹2.50 + applicable GST
• Transactions above ₹10,000 and up to ₹1 lakh: Maximum charge of ₹5.00 + applicable GST
• Transactions above ₹1 lakh and up to ₹2 lakhs: Maximum charge of ₹15.00 + applicable GST
• Transactions above ₹2 lakhs: Maximum charge of ₹25.00 + applicable GST

Disclaimer: Please note that actual charges may vary depending on the bank’s internal policies and are subject to revision by RBI guidelines. Customers are advised to confirm the applicable charges directly with their respective banks.

What Is the NEFT Transfer Time?

NEFT Transfer Timings as per the Reserve Bank of India (RBI)

The Reserve Bank of India (RBI) has enabled 24x7 NEFT (National Electronic Funds Transfer) services, allowing seamless online transactions throughout the year, including weekends and holidays.

Online NEFT Transfer Timings and Limits

Working Hours (7:00 AM to 7:00 PM): There is no upper limit on the transaction amount.

After Hours (7:00 PM to 7:00 AM): Transactions are permitted up to ₹1 crore per transaction.

Weekends and Public Holidays

NEFT services remain available online 24/7, with a maximum limit of ₹1 crore per transaction.

NEFT transactions are processed in half-hourly batches. For example:

A transaction initiated at 11:02 AM will be settled by 11:30 AM.

A request made at 11:25 AM will also be processed by 11:30 AM.

Branch-Based NEFT Services

Weekdays (Monday to Friday): 8:00 AM to 7:00 PM

Saturdays: 8:00 AM to 6:45 PM

2nd and 4th Saturdays, Sundays, and Public Holidays: NEFT services are not available at bank branches. However, online NEFT remains fully operational.

Customers are encouraged to use digital channels for uninterrupted access to NEFT services beyond branch operating hours.

What are the factors affecting NEFT Settlement Time?

While NEFT operates in scheduled batches, several factors can impact the timing of fund settlement:

Cut-off Timings

NEFT transactions are processed in half-hourly batches as per the Reserve Bank of India's schedule. Transfers initiated just before a batch cut-off are typically processed promptly, whereas those submitted afterward are queued for the next cycle.

Bank Processing Hours

Although NEFT services are available 24x7, some banks may process transactions only during their internal operational hours. Payments initiated outside these hours might be delayed until the bank resumes processing.

Technical Issues

Delays can occasionally occur due to system outages, connectivity issues, or technical disruptions at the bank or RBI level.

Regulatory Updates

Changes or updates in NEFT guidelines issued by the RBI can temporarily impact processing times during the implementation phase.

For timely transfers, users are advised to consider these factors and initiate transactions accordingly.

NEFT Transfer Limit

The Reserve Bank of India (RBI), which regulates the National Electronic Funds Transfer (NEFT) system, does not prescribe any minimum or maximum limit on the amount that can be transferred through NEFT. In principle, this allows users to transfer any amount.

However, individual banks may impose their transaction limits based on internal policies, risk assessments, customer profiles, or operational considerations. These limits may vary across banks and account types.

Customers are advised to check with their respective banks to understand any specific NEFT transaction limits that may apply to their accounts. 

How to Transfer Money Through NEFT?

To transfer funds via the National Electronic Funds Transfer (NEFT) system, follow the steps below:

Step 1: Access Banking Services

Log in to your bank’s Internet banking portal or mobile banking application. Alternatively, you may visit your nearest bank branch to initiate the NEFT transfer in person.

Step 2: Navigate to the Funds Transfer Section

Once logged in, go to the ‘Funds Transfer’ or equivalent section within your digital banking platform.

Step 3: Select NEFT as the Transfer Option

Choose ‘NEFT’ (National Electronic Funds Transfer) from the available fund transfer options.

Step 4: Enter Beneficiary Details

Provide the following information:

Beneficiary’s full name

Bank account number

IFSC code of the beneficiary’s bank branch

Amount to be transferred

Step 5: Verify Details

Carefully review the beneficiary’s details and the transaction amount to ensure accuracy before proceeding.

Step 6: Authenticate the Transaction

Depending on your bank’s security protocols, you may be prompted to enter a transaction password, OTP (One-Time Password), or other security credentials for authentication.

Step 7: Confirm the Transfer Request

Once all required information is verified, confirm the NEFT transfer request.

Step 8: Review and Finalise

Your bank may present a summary of the transaction for final review. Confirm the details before proceeding.

Step 9: Receive Confirmation

After the NEFT request is successfully submitted, you will receive an acknowledgement or confirmation message from your bank indicating that the transfer has been initiated.

Additional Information

NEFT transactions are processed in half-hourly batches throughout the day. Processing time may vary based on when the transaction is initiated.

Once processed, the funds will be credited to the beneficiary’s account.

The recipient’s bank typically notifies them upon successful crediting of the amount.

Tips for Using NEFT

To ensure a smooth and secure NEFT experience, consider the following guidelines:

Verify Beneficiary Details: Ensure the beneficiary's name, account number, and IFSC code are entered correctly. Inaccurate details can result in delays or failed transactions.

Add Beneficiaries in Advance: If your bank requires beneficiary registration, add recipients ahead of time via the internet or mobile banking to avoid last-minute delays.

Utilize Scheduled Transfers (If Available): Some banks allow you to schedule NEFT transactions for a future date. This feature is particularly useful for managing recurring or time-sensitive payments.

Be Aware of Transaction Limits: Banks may impose transaction limits for NEFT. Familiarize yourself with your bank’s cap to plan high-value transfers effectively.

Consider Processing Timings: While NEFT is available 24/7, transactions are processed in hourly batches. Initiating transfers during standard banking hours may result in quicker processing.

Understand Applicable Fees: Review your bank’s NEFT fee structure. Charges may vary based on the transfer amount and the bank’s policies.

Keep Transaction Records: Always save transaction confirmations and reference numbers. These can be crucial in resolving any future disputes or discrepancies.

Use Only Secure Platforms: Conduct NEFT transfers exclusively through official bank websites or mobile applications to safeguard your financial data and prevent phishing attacks.

Avoid Unverified Requests: Refrain from transferring funds to unknown individuals or unverified entities to mitigate the risk of fraud.

Report Issues Immediately: If you encounter any problems during the transaction, contact your bank’s customer support promptly for resolution.

Conclusion

Understanding the NEFT system is essential, as it remains one of the most reliable and secure methods for transferring funds electronically. NEFT processes transactions in hourly batches throughout the day, and once a transfer is completed, the beneficiary’s bank account is credited, typically accompanied by a notification from their bank. Whether for business transactions or personal payments, NEFT provides a convenient, efficient, and secure solution for managing fund transfers.