The world is turning digital with great speed. In this high-speed growth, banking has also turned to a digital approach. There are several examples of this. Netbanking, RTGS, Online Money Transfer, e-wallets, etc. are all digitized versions of simple banking. NEFT too is an important example. Neft however, can be done both online as well as offline. To know more about NEFT just read through the article.
What is NEFT?
NEFT or National Electronic Funds Transfer is a facility that allows the user to transfer funds online with the help of the internet, through a mobile or any digital screen like a PC or laptop.
NEFT is a bank-to-bank transfer that connects the accounts of two same or different banks and transfers the funds between the accounts. It is hassle-free and eliminates the factor of visiting your bank to do the transfer.
How to Make an NEFT Transfer
- Launch your bank website/app
- Log in with your proper credentials
- Click on “Funds Transfer”
- Click on “Add beneficiary” if you need to make a payment to a new account
- Enter the required details like the name, bank name, account number, IFSC Code, etc. and recheck the information before submitting the details.
- To authenticate the added beneficiary, an OTP will be sent to your registered mobile number.
- After you have entered the OTP it will take up to 24 hours to authenticate the details.
- After the beneficiary is added to your list of beneficiaries, click on their name to make an NEFT transaction.
- Enter the transfer amount
- Click on “confirm” to process your transfer.
How Much Time Does it Take to Settle an NEFT
There is no specific time when an NEFT can be done. It can be done at any time, whether it be on holidays, weekdays or weekends, an NEFT will be successful. However, it takes time to settle the NEFT claims. It takes approximately 48 hours to settle an NEFT settlement.
The claims are divided into batches of half hours. That means that the settlement of the first batch begins at 12:30 am while the last batch ends at 12:00 am.
The NEFT transactions that take place during the working hours of the bank are expected to be automated through the Straight Through Processing (STP).
Benefits of NEFT
- The minimum NEFT amount is ₹1
- No maximum NEFT limit
- Can be done online without the involvement of the bank directly
- The sender and the receiver stay informed about the transfer by the RBI guidelines
- The funds are transferred within 1 hour to 24 hours
- Very safe, since they are governed by the RBI
- Not involvement of anyone except the sender and the receiver
- Can transfer funds between two different banks
- No transfer of physical funds
- Allows cross-border transfers from India to Nepal
- Both parties are notified through SMS and e-mails.
FAQs Related to NEFT Settlement Time
Q. When can I do an NEFT Transfer?
Ans – There is no specific time that you have to do an NEFT transfer. It can be done at any time you want irrespective of the day and time.
Q. Do I need to go to my bank to initiate an NEFT?
Ans – No. You can do an NEFT Transfer from anywhere without visiting your bank.
Q. How long does it take to settle an NEFT?
Ans – It takes from 1 hour to 24 hours to settle an NEFT Claim.
Q. Do I have to pay some charges to do an NEFT Transaction?
Ans – Yes. You have to pay to transfer funds through an NEFT.
Q. How much do I have to pay for making an NEFT Transfer?
Ans – The fee is usually different for different banks. However, it ranges near the below-given charges:
₹2 for less than or equal to ₹10,000
₹5 for ₹10,000 to ₹1 lakh
₹15 for a transfer between ₹1 lakh to ₹2 lakh
₹25 for a transfer above ₹2 lakh.
Q. If the NEFT is happening between two different banks with different Charges, which charges are applicable?
Ans – In a case where the sender and receiver banks are different, the charges of the sender bank are applicable.
Q. What is the minimum/maximum transaction limit?
Ans – There is no maximum limit for how much you can transfer through an NEFT. The minimum amount for an NEFT transfer is ₹1.