National Electronic Funds Transfer (NEFT) is a electronic payment system where one can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country.
Even individuals who do not have a bank account or walk-in customers can also deposit cash at the NEFT enabled branches. Know more on how NEFT services can be availed offline.
Here are must-know points before using NEFT transactions
1. There is no limit, either minimum or maximum on the amount of funds that could be transferred using NEFT. However, the maximum amount per transaction is limited to Rs 50,000/- for cash-based remittances within India.
2. NEFT operates in hourly batches, there are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays.
3. Individuals can use NEFT to transfer funds from NRE and NRO accounts in the country. This, will be subject to the adherence of the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines.
4. Inward transactions are free, no charges will be levied on beneficiaries. Know more on outward remittances here.
5. Before transferring funds, beneficiary needs to be added to the account. One should make note of beneficiary account number, IFSC number, bank and branch name and name as per bank details.
6. Individuals can avoid sending the physical cheque or Demand Draft to the beneficiary.
7. If for any reason if there is no credit in the account of a beneficiary the destination banks is required to return the transaction within two hours of completion of the batch in which the transaction was processed.