02
Sep
2020

What is Full Form of NEFT & How to Use?

Many of you may have used NEFT earlier to send money, but do you have the right information about the details such as full form of NEFT? Because the rules of the bank change day by day, it is very important to have updated information in all these subjects.

What is NEFT?

At present, there are many options for sending money from one bank to another bank account like RTGS, NEFT, IMPS. Banking process has become very fast through internet, you can transfer money instantly to any bank account in any corner of the country.

In this post, I will discuss about NEFT including the full form of NEFT. Through NEFT, you can transfer money from one account to another by going to your bank or sitting at home through net banking.

Full Form of NEFT

The full form of NEFT is National Electronic Fund Transfer. NEFT is an easy and simple method of fund transfer, through it you can send money to any bank account across the country.

NEFT was started by the Reserve Bank of India in November 2005 and this service is currently available in almost every bank. Money transfer in NEFT is done in hourly batches rather than in real time like RTGS.

To transfer money through NEFT, the person whose account you have to send money to, should have the name, bank account number, branch address and ifsc code of that bank.

How does NEFT work?

NEFT also works like RTGS but the process of NEFT is slower than RTGS and there is no restriction of the minimum amount, there is a fee for transferring money from NEFT which depends on the amount being sent.

To transfer funds from NEFT, you should know the bank account number, bank branch, IFSC code of the person receiving the money.

Through NEFT, you can transfer money in two ways, one is offline, that is, you have to go to your bank branch, take the form of neft and fill it and submit it to the bank.

The second way is online, that is, if you use NET BANKING, then you can send money through NEFT sitting at home. For this, you have to activate third party transfer service. In this, you have to go to add new beneficiary and add details of the beneficiary.

Now you select the neft option for fund transfer and select the account to send money to, after which enter the amount you want to send and submit it.

How To Transfer Money Using NEFT?

Online Process -

First of all, log in to your net banking.

To transfer money from NEFT, you have to add the Beneficiary account holder name, account number, bank name and bank’s Ifsc code.

And then, you have to enter the details of the amount you want to transfer to the respective account. Apart from this, all the instructions given are to be followed.

For your information, whatever funds are transferred through NEFT takes time because every transaction is in a batch. But still it is better than other means of payment.

Offline Process -

Visit your bank and fill the NEFT/RTGS form containing details like Name, Account Number, Branch, IFSC Code etc.

Next, submit the filled form to the bank and they will do the rest.

NEFT Settlement Timings

NEFT works in all business days. If you talk about the time, it takes place in 23 half hourly batches from 8:00 am to 7:00 pm. Transaction takes place the next day in working hours if there is any delay. .

There is no settlement on the second and fourth Saturday of the month. There is no transaction even in weekly holidays and public holidays.

Charges for NEFT

On fund transfer through NEFT, you have to pay service charges which is as follows:

  • Upto 10000 = INR2.5 + (GST)
  • Above 10000 but less than 1 lakh = INR5 + (GST)
  • Above 1 Lakh but less than 2 Lakh = INR15 + (GST)
    INR25 + (GST) for above 2 lakhs

There can also be a change in the above charges, you can find out in the bank for the current charges.

Indian Banks Offering NEFT Service

Almost every major bank offer NEFT service to its consumers. Some of them are as follows:

  • Canara Bank
  • Bank of India
  • Central Bank of India
  • State Bank of India
  • Allahabad Bank
  • Punjab National Bank
  • Uco bank
  • United Bank of India
  • Syndicate Bank
  • Andhra Bank
  • Oriental Bank of
  • Commerce
  • Vijaya Bank
  • Nainital Bank
  • Dena Bank
  • Union Bank of India
  • ICICI Bank
  • HDFC Bank
  • Indus Ind Bank
  • Axis Bank
  • Yes Bank

Some Special Features of NEFT

  • NEFT is an electronic process of transferring money.
  • To send money from NEFT, bank account number of beneficiary and ifsc code of bank is necessary.
  • Any person who has an account in the bank can avail this service.
  • Through Neft, you can send money both offline (by going to the branch) and online (through net banking).
  • NEFT provides all CBS branches.

In this post, I tried covering everything related to NEFT including the full form of NEFT. Now it’s your turn. Give this nice post a favor by sharing it with your friends.

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2 Responses

  1. September 3, 2020

    […] Suggested Read: What is Full Form of NEFT & How to Use? […]

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