About National Electronic Fund Transfer (NEFT):
- NEFT is a nation-wide electronic centralised payment system owned and operated by the Reserve Bank of India (RBI).
- It enables transferring funds from the account maintained with any bank to any other bank branch, provided the transaction is attempted between the banks that participate in the NEFT payment system.
- Organisations, companies and individuals can use it to transfer funds from one bank account to another.
- As per Reserve Bank of India (RBI) guidelines, the payments made via NEFT are processed and settled in half-hourly batches.
- Minimum Transfer Value: Rs. 1
- Maximum transfer value: No limit
- NEFT offers the following advantages for funds transfer or receipt:
- Round-the-clock availability on all days of the year.
- Near-real-time funds transfer to the beneficiary account and settlement in a secure manner.
- Pan-India coverage through large network of branches of all types of banks.
- The beneficiary need not visit a bank branch for depositing the paper instruments. Remitter can initiate the remittances from his / her home / place of work using internet banking, if his / her bank offers such a service.
- Penal interest provision for delay in credit or return of transactions.
- No levy of charges by RBI from banks.
- No charges to savings bank account customers for online NEFT transactions.
- The transaction charges have been capped by the RBI.
- NEFT system can be used for the payment of credit card dues to the card issuing banks, payment of loan EMIs, inward foreign exchange remittances, etc.
