National Electronic Fund Transfer or neft means a countrywide electronic fund transfer system that allows you to transmit money securely and conveniently from one bank account to another. All NEFT transactions are completed in batches. Individual payments can be made to any NEFT-enabled bank in India using this mechanism.
The bank IFSC code, as well as additional credentials such as bank account number, bank branch, and account holder name, are necessary to initiate a NEFT transfer. Throughout the country, many banks use the NEFT payment platform. Payments using neft are easier and less time-consuming. With the world rapidly transitioning to internet banking, the notion of NEFT has gained in popularity throughout the country and is a simple way to transfer payments.
Neft Time Limit
Beginning on December 16, 2019, one can transfer funds via NEFT 24 hours a day, seven days a week. Money can be transferred using NEFT, even on holidays and weekends.
How to Perform an Neft Transfer
The steps for National Electronic Funds Transfer (NEFT) are as follows:
- Access your online banking account. Sign up for a net banking account on your bank’s website if you don’t already have one.
- Add the recipient as a payee. To do so, fill out the ‘Add New Payee’ box with the following beneficiary information:
- Account number and name
- The IFSC code.
- Account Type.
- Once the payee has been added to the list, select NEFT as the form of money transfer.
- Select the account from which you want to send funds, the payee, the amount to be transferred, and any comments (optional).
- Click the submit button.
Neft: Fees & Charges
The fees imposed if you receive money is zero. However, if you send money, the bank will charge you. The fees charged differs depending on the bank.
The Pros of Using Neft
NEFT has numerous advantages, which are
- You can quickly transfer funds from one bank account at any branch to another using NEFT.
- No requirement for parties to be physically present.
- Quick, easy, and efficient.
- There is no need to go to the bank if you have a valid bank account.
- You can start internet banking from anywhere.
- Transaction confirmation will be received via email and SMS notifications.
- NEFT’s real-time transactions assure both parties.
Eligibility of an NEFT Transaction?
The RBI provides a list of banks participating in the NEFT scheme. Corporates, firms, and individuals with NEFT bank accounts will be able to conduct NEFT transactions. Individuals without a bank account can also make an NEFT transaction by visiting a bank branch and providing the necessary information.
How to Use NEFT to Pay a Credit Card Bill
Follow the steps below –
- Log in to your bank’s online banking service.
- As a beneficiary, the credit card must now be added. For this, you will need to know your credit card’s IFSC code.
- Continue by inputting the credit card number as the account number, as well as any other pertinent information.
After you’ve registered the credit card as a payee, go to the ‘NEFT Funds Transfer’ option and enter the bill amount to transfer funds to your credit card. Click here to learn what occurs when a cancelled cheque.