The National Electronic Fund Transfer (NEFT) is a very popular means of sending and receiving money and has almost eliminated the need for depositing cheques.
The NEFT system is mostly for remitting payment in India. One cannot send money by NEFT to family and friends residing abroad.
The outbound remittances through NEFT system are permitted only to Nepal under Indo-Nepal Remittance Scheme. Under this scheme, the remitter can transfer funds from any of the NEFT-enabled bank branches in India to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees.
Can I send and receive money If I do not have a bank account?
There are many persons who may not have a bank account in India. The NEFT system be used for remitting funds even by those who do not have a bank account.
The individual having no bank account can remit funds through NEFT to a beneficiary having a bank account, with another National Electronic Fund Transfer member bank. It can be done by depositing cash at the nearest NEFT enabled branch of any bank, by furnishing additional details such as complete address, telephone number, etc. Such cash remittances will, however, be restricted to a maximum of Rs 50,000 per transaction.
This means there is a restriction on the amount that one can transfer if one does not have a bank account. These days the NEFT is a 24x7 transfer system. While earlier one could send and receive money only during a specific period, these days it is available without even on Sundays and bank holidays. The start of the NEFT system has completely eliminated the need for cheques, which are now increasingly becoming redundant. The IMPS system is also an immediate system and has taken a lot of load away from the NEFT.