NEFT or National Electronic Fund Transfer has emerged as an extremely efficient form of money transfer that is convenient, quick and is pretty reliable as well.
Who can transfer money through this mechanism?
If you are an individual you can freely transfer money. Corporate, partnership firms, cooperative societies etc., are allowed to use this facility.
Using NEFT you can transfer any amounts. There is no restriction on the maximum and the minimum amount that can be transferred through the NEFT. However, for cash based transactions there is a restriction of Rs 50,000. Also, for sending money through this mechanism through the Indo-Nepal remittance facility as well there is a restriction of Rs 50,000.
Sending money through NEFT
You can walk into any branch of a bank and send money through National Electronic Fund Transfer. The basic charges would apply and your money would be transferred in a maximum of 2 hours.
If you do not have a bank branch, then you can also send money through NEFT using net banking. You first need to login with your password and ID. After that there is an option which allows you to add beneficiaries. Add a beneficiary there.
You need to add the beneficiary name and most importantly the right ISFC code. After this the bank would add the beneficiary. Some banks take 24 hours to add, while some can take as little as 4 hours.
Only after this you are allowed to send money through NEFT. Each time you need to make payment to the same beneficiary, you just need to add the amount. It is as simple as that. Using NEFT to send money through net banking is easy and safe.
However, there are a few important things that you must remember. One is that you should get the IFSC code correct. The other is that it may take a couple of hours before the amount is transferred. These days most banks send you an SMS once the beneficiary has received the amount.
The charges are very minimal for each transactions. The transfers also can be done at pretty orders hours starting from 8 am in the morning.
For those who are not net savvy they can walk into the branches of banks in India to send money through this mechanism. Overall, it is faster, easier and more convenient.