The National Electronic Fund Transfer is a very popular method of remitting money anywhere across India. The amount is credited in a few hours and there is no hassle involved in depositing a cheque, which takes days for clearance.
What is the maximum amount permissible under NEFT?
You cannot deposit large amounts per transaction through the NEFT if you are undertaking a cash transaction. The maximum amount that can be transferred through the NEFT using cash is Rs 50,000 per transaction.
However, you can do any number of transactions to affect the payment and there is no restriction on the maximum amount, except as mentioned for cash based transactions.
This restriction is also available for those who wish to remit money to Nepal.
Each time you remit money there is a transaction fee that is involved so make use of the maximum amount that you can remit under NEFT. Multiple transactions will tend to cost more money.
Can you transfer money anywhere across India under NEFT?
Yes, individuals can transfer money anywhere across the country. All of the bank branches are linked to core banking, which means it is easy to send and receive money. The amounts being remitted and being received are settled in Mumbai through the core banking system.
So, even if you are in a far-off place like the extreme South or North East, it is easy to send and receive money through the NEFT.
Things to note when sending money through NEFT
When you are sending money through NEFT, you should always note the timings. Banks have as many as a dozen settlements starting from 8 pm to 7 pm on a normal working day. On Saturdays the timing is restricted from 8 am to 1 pm.
This may change now given the fact that Banks now work full days on alternative Saturdays. Apart from this, one should also note that there are charges that are applicable on the NEFT.
For example, if you are transferring an amount lesser than Rs 10,000 the charges would be Rs 2.50, which is very nominal. On the other hand amounts ranging from 10,000 to Rs 100,000 will attract a charge of Rs 5.
For transactions above Rs 1 lakh to Rs 2 lakh it is Rs 15.
You can do a whole lot of transactions through the NEFT. Apart from doing personal funds transfer, you can pay your utility bills, as also credit cards. It is easy through net banking and the procedure involved is very minimal, in case you have registered a beneficiary.
How would you know that the third party has received credit?
After you remit the money, it would take around 30 minutes to 2 hours to affect a transfer. As soon as the account of the beneficiary is credited, you would receive a notification, saying that the amount is credited. This would be done through SMS if you have given your registered mobile number.
If the credit does not happen than something is wrong with the IFSC code or the other details that have been forwarding to the bank. In that case you would receive credit of the money that was debited from your account.