Everything You Need to Know About a NEFT Transaction

The National Electronics Fund Transfer is the NEFT full form, and this is a simple way in which to transfer funds from one bank account to another. NEFT is the most common way to transfer funds today and you can pay your credit card bills through NEFT payments.

About NEFT Transactions

A popular mode of payment, there are some features that you should know about the service of NEFT transfer:

  • The transfer of funds to an individual or company account is facilitated through NEFT, provided the beneficiary account is enabled with NEFT.
  • Through NEFT, money is transferred electronically from one bank account to another.
  • To undertake a NEFT transaction, you need to have the service of net banking from your bank.
  • The process is fast as all you have to do is log on to your net banking account, enter your beneficiary’s name, enter the amount to be transferred and verify the transaction.
  • Unlike other forms of transfer such as IMPS, NEFT can take place as individual transfers or occur in batches of transfers.
  • Governed by the Reserve Bank of India, it is secure.
  • Through certain steps, verification takes place and guarantees safety.
  • It is mostly available 24 hours a day, everyday.

NEFT Transfer Limits

Now that you know what NEFT entails, you should also know about the NEFT transfer limit, or simply, the NEFT limit. This has to do with the maximum amount of funds you can transfer. When you execute a NEFT transfer, there is a maximum limit beyond which you cannot send funds. While the Reserve Bank of India imposes no such ‘limit’ rules, individual banks tend to have them. Read on to know about the NEFT limits:

  • Maximum Limit for NEFT – The maximum amount that can be transferred, on a ‘per transaction’ basis is the maximum limit. Individual banks set limits for transactions made through their bank accounts. Some banks have maximum limits that may be transferred during particular periods only. For example, the maximum limit set by Axis Bank from 4.30-6.30 pm is under Rs. 5 crores.
  • Minimum Limit for NEFT- There is no minimum limit set for transfers through NEFT.
  • NEFT Daily Limit – This is used as a popular term to mean the NEFT Maximum Limit.

How to Transfer Money Using NEFT

With knowledge about NEFT transfer limits, you know how much you can transfer per transaction on a daily basis. The next aspect of NEFT transfer you should know about is how to transfer funds using NEFT. Typically, all banks follow the same online procedure. This is explained below:

  1. Go to your bank’s mobile app or net banking portal.
  2. Under ‘third-party transfer’, add the beneficiary details, such as beneficiary name, beneficiary bank name, branch of beneficiary bank, account number of the beneficiary and beneficiary IFSC code.
  3. Verify all the details and click on ‘submit’.
  4. After this, you will be required to authenticate the transaction by permitting the deduction of the transfer amount from your bank account.

Concluding Lines

Knowing how to conduct NEFT transfers is useful for the payment of all your utility bills, including credit card bill payment. To understand more, you can find details on Finserv MARKETS.