What are the charges levied by banks for NEFT transactions?

Published: Tuesday, June 10, 2014, 10:03 [IST]

National Electronic Funds Transfer (NEFT) has become one of the most popular means for remitting money and has helped individuals to increasingly rely to a lesser extent on crossed cheques.

NEFT enables direct credit to bank accounts from anywhere across India within a few hours. It has now evolved as a nation-wide payment system facilitating one-to-one funds transfer.

Under the NEFT, individuals, as well as firms and corporates 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 participating in the Scheme.

What are the carious charges levied for NEFT transactions?

NEFT charges as can be seen below are not very expensive. The structure of charges that can be levied on the customer by a bank under NEFT is as below:

a) Inward transactions at destination bank branches (for credit to beneficiary accounts)
- Free, no charges to be levied from beneficiaries

b) Outward transactions at originating bank branches - charges applicable for the remitter

For transactions up to Rs 10,000: not exceeding Rs 2.50 (+ Service Tax)

For transactions above Rs 10,000 up to Rs 1 lakh: not exceeding Rs 5 (+ Service Tax)

For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Service Tax)

For transactions above Rs 2 lakhs: not exceeding Rs 25 (+ Service Tax)

Clearly, while for the person receiving the funds, there are no charges, there are small charges levied for those who intend to receive the money. Nontheless, the charges are very much affordable, considering that an individual can remit money anywhere across the country, without the use of cheque leaves. Also read How long does it take for NEFT transfer here

GoodReturns.in

Story first published: Tuesday, June 10, 2014, 10:03 [IST]

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