All You Need to Know about NEFT
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Have you ever tried to transfer money online through your net banking portal only to be confused by the different payment option such as NEFT, RTGS and IMPS? Most people who are new to the net banking have a hard time figuring out the meaning and difference between NEFT, RTGS and IMPS. These are just some of the ways of digital payments. Other forms of digital payments include e-wallets and UPI payment apps.
In this article, you will know about National Electronic Funds Transfer and how it is different from RTGS or IMPS.
The NEFT payment process is simple and easy to use. Through it, you can easily transfer money to the recipient’s bank account. The IFSC code is important to carry out any NEFT transactions. These transactions are non-instantaneous payments as the transactions are cleared on half-hourly slots.
Step 1: Log in to your net banking account
Step 2: Add the payee if the payee is not on your payee list. In the add payee section, key in the account number, name of the beneficiary, IFSC Code, and bank account type whether it is savings or current account.
Step 3: After the payee is added, select NEFT as the fund transfer option
Currently, the transaction can be done on all working days of the week except the second and the fourth Saturday of every month. The process is available between 8 am to 7 pm.
However, the timings will be revised from December and NEFT transactions will be available 24*7. It is RBI’s move to bring about a sea of changes in the digital payment sector.
The beneficiary of the bank transfer does not have to pay any charges. The sender is charged a transaction fee that depends on the number of transactions.
Here is the list of NEFT Charges:
| Transaction Amount | NEFT Charges |
| Amounts upto Rs 10,000 | Rs 2.50 + Applicable GST |
| Amounts above Rs 10,000 and upto Rs 1 lakh | Rs 5 + Applicable GST |
| Amounts above Rs 1 lakh and upto Rs 2 lakh | Rs 15 + Applicable GST |
| Amounts above Rs 2 lakh and upto Rs 5 lakh | Rs 25 + Applicable GST |
| Amounts above Rs 5 lakh and upto Rs 10 lakh | Rs 25 + Applicable GST |
Recently, RBI has announced that transactions done through NEFT would no longer attract RBI fees. Hence, banks may be more prompted to pass on the benefits to their customers.
RBI has directed banks not to charge any NEFT charges from January.
There is no minimum amount requirement. Typically, it is used to transfer money of up to Rs. 2 lakhs.
RTCG is used to transfer a large sum of money online. The payment option is better suited for business owners who carry out high-value transactions rather than individuals.
While NEFT transaction does not have any minimum balance, the minimum amount for an RTGS transaction is Rs.2 lakhs. RTGS does not have a maximum transaction limit.
In the case of RTGS, the payment takes place instantaneously. The transaction is cleared on a half-hourly basis.
Similar to National Electronic Funds Transfer, RTGS transactions also have charges. E.g., to transfer money between Rs.2 lakh and Rs.5 lakh, customers may need to pay up to Rs. 24.50, and Rs. 49.50 for transferring money above Rs. 5 lakh. These charges are exclusive of GST.
RTGS is available during bank working days and working hours.
IMPS is an instant payment mechanism and it can be initiated through internet banking, mobile banking and even through ATM. Unlike National Electronic Funds Transfer, IMPS is available round the clock. The charges for IMPS transactions differ from bank to bank as it is set by individual banks.
Conclusion:
NEFT payment is an ideal payment option for transactions up to Rs. 2 lakhs done on a bank working hours. Currently, it has transaction charges. However, in the coming days, it is most likely to be available round the clock without any charges.
Tags: payment method, Online Banking, neft