NEFT Full Form and NEFT: Are you searching full form of NEFT? Do you want to know in detail what NEFT actually means? Then you have reached the right place. Here we will provide you complete information about NEFT full form and NEFT.
NEFT Stands for National Electronic Funds Transfer. NEFT is a basically a bank facility which enables the bank users to transfer funds between the NEFT permitted bank account on the one-to-one basis. NEFT is maintained by the Reserve Bank of India. The NEFT system is popular nationwide because it allows the secure one-to-one transfer. Using the system, people can transfer the money electronically from one bank account to any other bank account all over the country.
NEFT Full Form and NEFT
In order to transfer money, all the banks require the IFSC code. There are few banks which offer the NEFT service through their ATMs. An IFSC code is basically 11 Digit Alpha Numeric code which is being distributed to all the bank branches by the Reserve Bank of India. In order to transfer money from one bank to the another, it is main requirement that the bank should be the part of NEFT network under the RTGS services. An IFSC code mainly consists of 3 parts. The first part consists of the bank name, the second part consists of the number “0” while the third part consists of unique branch code which is being provided by the NEFT.
What are the Requirements for performing the NEFT Transaction?
Following are the main requirements for transferring funds using NEFT:
- The Sender and the Receiver should be a part of the NEFT Network.
- An individual such have the details of Beneficiary such as beneficiary bank name, account number, account type IFSC code of the beneficiary bank.
How to Transfer Money using NEFT?
In order to transfer money using the NEFT, all the small changes will vary on the basis of the banks sending and receiving process.
- First of all, visit the bank’s website and fill the online application form, where you have to provide details of the person to whom you will be sending money. Here, you have to provide details such as the name of the receiver, name of his or her bank, their branch name, IFSC code, type of the account and then lastly the account number along with the amount of money that you want to send. The sender authorizes the bank to debit the amount from the bank and credit the amount to the receiver’s bank.
- Later on, the bank will then generate a message and then sent it to the NEFT service center.
- Now, in the next step, the NEFT will send back your message to the NEFT Service Center which is being operated by the NEFT Clearing cell which is basically a part of the RBI Mumbai and thus will consider your transaction.
- Now, the NEFT Clearing Centre sorts all of your funds on the basis of different banks and then maintain an account of all the entries of the bank from which amount is debited and transfer funds to the receiver’s bank.
- Finally, the end bank receives all the payment messages from the NEFT Clearing Centre and transfer funds into the receiver’s account.
Fees and Charges for the NEFT Services
Here, the receiver’s bank doesn’t charge anything from the receiver.
However, for the sender, the bank charges the fees based on the money he/she send’s via NEFT. All the fees are listed below:
- If Amount to be transferred is Rs 10,000: Rs 2.5 + Service Tax is applicable.
- If Amount to be transferred is between Rs 10,000 to Rs 1 Lakh: Rs.5 + Service Tax is Applicable.
- If Amount to be transferred is between Rs 1 Lakh to 2 Lakh: Rs.15+ Service Tax is Applicable.
- If Amount to be transferred is more than 2 Lakhs: Rs.25 + Service Tax Applicable.
Major Benefits of NEFT
- The sender does not need to send the Physical Cheque or Demand Draft to the beneficiary.
- It is most cost effective.
- Direct transfer of funds to the Reciever’s Account in a fast and secure manner.
- Credit confirmation message is sent to the remitter by SMS as well as E-mail.
- The Sender can transfer funds from any place with the help of Internet Banking.
- The Beneficiary should not worry about any loss or theft or any fraudulent usage of cash.
Frequently Asked Questions about NEFT
Who can Transfer Funds via NEFT?
All the Individual, Firms and Corporates can transfer the funds using the NEFT service scheme. If an individual doesn’t have a bank account then he/she can deposit the money to the NEFT-supported branches along with providing instructions to transfer funds using NEFT. While all such funds transfer is limited to a maximum of Rs 50,000 per transaction. All such customers have to compulsory provide information such as full address, mobile number, telephone number, etc. Hence, NEFT allows funds transfer for also the customers who don’t have the bank account.
Who can receive Funds via NEFT?
- All the individual, firms and corporates having an Account in a NEFT supported bank can receive the funds. Hence, it is essential for a beneficiary to have an Account in the NEFT supported the bank in the country.
- The NEFT Scheme allows the transfer of funds from one-way cross-border transactions from India to Nepal. It is also known as Indo-Nepal Remittance Facility Scheme.
- Apart from this, the sender can transfer funds from any of the NEFT supported banks in Nepal, despite the receiver has an account in any of the banks in Nepal or not. In this process, the receiver will receive funds in Nepalese Rupees.
What is the maximum limit of Amount that can be transferred using NEFT?
No. There is no limit on the maximum amount of funds that can be transferred using NEFT. But, the maximum amount of transaction is restricted to Rs 50,000 per month for the cash-based payments within India and also for the payments that can be done in Nepal mentioned under the Indo-Nepal Remittance Facility Scheme.
What are the Timings for doing NEFT transactions?
As per the current Scenario, NEFT operates in the hourly batches on the various service centers working hours from 8:00 AM to 7:00 PM on the weekdays and operates 6 batches on Saturday from 8:00 AM to 1:00 PM.
Thus, NEFT transactions can be made from Monday to Saturday. While they are closed on Second and Fourth Saturday of the Month. Also, NEFT transactions can’t be credited on the Public Holidays.
In how much time, the amount will be credited to the beneficiary account?
The amount will be credited within 2 hours on a working day depending on the batch in which the transaction was being initiated.
To whom should you contact when there is delay or amount is not credited to the receiver’s account?
If there is delay or amount is not credited to the receiver’s account then you should directly contact the NEFT Customer Facilitation Centre (CFC) of the particular bank. All details about CFC is available on the respective bank’s website.
Will a Sender receive an acknowledgment when the funds are been credited to the Beneficiary account?
Yes, when the amount is completely transferred to the beneficiary account, the bank which has initiated the process is expected to send a confirmation to the sender providing details of funds along with date and time. However, to receive an acknowledgment, the sender has to provide details such as Mobile Number and Email Address.
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