What is NEFT? What Are The Charges on NEFT Transaction?

Introduction

NEFT stands for National Electronic Funds Transfer. RBI established and manages the NEFT digital money transaction network, which was launched in November 2005. NEFT enables money to be transferred electronically from one NEFT-enabled bank account to another.

One of the advanced techniques of online money transmission is the National Electronic Funds Transfer scheme. It is governed by the RBI and hence operates in accordance with the rules established by the RBI.

NEFT Guidelines

• NEFT is a one-to-one payment method.
• NEFT payments can only be handled across banks that provide NEFT-enabled facilities.
• NEFT transfers do not occur in real-time, suggesting that NEFT operations take a couple of days to conclude
• Prior to December 2019, the RBI has set times for NEFT payments to be completed. Earlier all NEFT transactions were executed only between hours of 8:00 a.m. and 6:30 p.m., Monday through Friday, But, beginning in 2020, NEFT payments will be available 24 hours a day, seven days a week.
• To pay cash using NEFT, you should first add beneficiaries to your necessary bank’s online banking interface.
• The number of NEFT transfers is not restricted.
• There is a charge required on all NEFT transactions; the amount varies from Rs. 1 to Rs. 50, depending on the amount being transferred
• As per RBI norms, the transactions submitted via NEFT are handled and cleared in batches of half-hour

NEFT Charges for Different Banks

However, in a bid to encourage customers, many banks such as SBI have waived off Online NEFT charges completely.

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