NEFT or National Electronic Fund Transfer is considered as an easy way to transport money from one account to other. Individuals, corporate or firms are able to transfer the funds via the net banking facilities provided by the bank. The bank accounts should be linked with the online banking facility for the ease of the users. Unlike the traditional mode of banking system, NEFT can be used soon after activation of online banking service.
Among the plenty of benefits that it offers, It does not have minimum and maximum limit for transfer of funds. In addition, the transfer can be done at any point of time. Also, users can schedule transfer and do it later on. However, this instant fund transfer facility has gained popularity. This is more popular among Indian population who are using this facility frequently and they are able to transfer funds. This process is not hindered by geographical location or time.
What are the Requirements for NEFT?
The service of NEFT can be done easily but user has to check whether the same is offered by the concerned bank or not. For instant payment, the beneficiary should be added in the user’s account. This will make the transfer method even faster. When adding beneficiary, important details such as IFSC number, bank name, branch name, and account number is required at the time of requesting for NEFT service. The beneficiary is added after a certain period of time. Soon after the beneficiary is added in the account, user can instantly send money. The proceedings take almost 12 to 24 hours to get added.
Steps of NEFT Transfer Using Online Banking:
Some easy steps should be known by the sender and beneficiary bank account for ease of transaction and avoid any kind of confusion.
- First, user have to login to the official website of bank. From the same, user has to click on ‘profile’ option. Following this, user has to click on ‘manage beneficiary’ link. From the options available, click on bank payee option.
- After this, user has to click on ‘add’ option. Following this, user has to enter beneficiary details including name, account number, address and interbank limit of amount in the given space. Make sure that the user provides correct information when adding the beneficiary details.
- Following this, user has to enter IFSC code of the concerned branch. This can be found by the location of the bank branch from the drop down list.
- After this, user has to accept terms of service of NEFT facility and click on ‘confirm’ button.
- Following this, a security password will be sent to the registered mobile number of the user. With the use of this password, user has to validate the beneficiary before adding. Therefore, the beneficiary account is added within a minimum of 30 minutes and maximum of 16 hours.
- Soon after activation, user can transfer instant funds to the added beneficiary account. For inter-Bank payee transfer, user has to select ‘interbank transfer.’
- After this, user gets the option to select the transaction type and select the NEFT option. Following this, from the beneficiary list that shows in the drop down list, user has to select the name of the beneficiary whom they wish to transfer funds. Along with amount to be transferred, user has to enter narration saying the purpose of the transaction.
- After this, user has to accept the given terms and conditions and finally press on the confirm button.
NEFT Transfer Timings:
Fund transfer has become an easy affair with help of NEFT or RTGS mode. It can be done instantly irrespective of time and place. Through RTGS or Real Time Gross Settlement and NEFT, funds can be transferred easily from one bank to the other. In case of RTGS, fund is processed only after providing instructions. For transaction of large values, RTGS is the suitable method. The minimum amount to be transferred through RTGS is Rs. 2 lakh without any fixed upper limit. This service is available via the online banking service from 9 Am to 4:30 PM on weekdays. For Saturdays, the time is 9Am to 2 PM.
Firm, corporates or individuals who have accounts with the bank can avail the fund transfer method via the NEFT method. Interestingly, for fund transfer via NEFT mode, there is no upper and lower limit of amount to be transferred.
NEFT service is available in hourly manner. It has twelve settlements from 8 Am to 7 AM on the week days from Monday to Friday. In addition, there are six settlements from 8 AM to 1 PM on Saturdays. These are the two methods of transferring funds from one bank account to the other.
How the Transfer of Funds Takes Place via the Methods?
- To get the service user should have access to net banking facility under the concerned bank.
- Beneficiary account should be added before user opts for the transfer. Details of IFSC, beneficiary account, bank name and branch name should be maintained.
- The beneficiary will be added from 12 to 24 hours. For proper authentication, text message will be sent to beneficiary’s number.
How NEFT Bank Transfer Works?
To initiate NEFT transfer, first user has to fill a form to provide details of beneficiary account. It will include beneficiary name, branch name, bank name, account type, IFSC code of branch in which the account has been opened. It makes the transfer an easy one. After user fill up the details, the amount will be deducted from your account and get transferred instantly to the beneficiary account. To receive funds via NEFT, no charges are deducted. But when sending money via NEFT, user has to pay some money depending on the amount that the user is sending. After user makes a request for NEFT, it is sent to NEFT service center. Here, the Reserve bank of India’s National Clearing Cell is considered the head of NEFT clearing place.