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The National Electronic Funds Transfer (NEFT), regulated by the Reserve Bank of India (RBI), facilitates seamless and near-instant fund transfers. This centralised payment system provides a fast, secure, and hassle-free method of transferring money. However, users may be required to pay minimal NEFT payment charges to access this convenient service.
According to RBI guidelines, banks do not impose any charges on inward NEFT transactions at the destination bank branch. For outward transactions, the RBI stopped charging fees on member banks from 1st July 2019.
Additionally, the RBI has directed banks not to levy online NEFT charges on savings account holders to promote digital retail transactions. However, banks may charge fees for outward transactions from other types of accounts at their discretion.
Here is the maximum NEFT bank transfer charges banks can impose, as outlined by the RBI:
Transfers up to ₹10,000 – Maximum fee of ₹2.50 (plus GST)
Transfers above ₹10,000 but less than ₹1 Lakh – Maximum fee of ₹5 (plus GST)
Transfers above ₹1 Lakh but less than ₹2 Lakhs – Maximum fee of ₹15 (plus GST)
Transfers above ₹2 Lakhs – Maximum fee of ₹25 (plus GST)
NEFT charges vary among banks and depend on the mode of transaction—online or at a branch. As per RBI guidelines, online NEFT charges initiated through internet or mobile banking are free for savings account holders. However, branch-initiated NEFT transactions may incur fees, which differ across banks. Here is a table summarising the NEFT transaction charges for various banks in India:
Bank Name |
Minimum NEFT Charges |
Maximum NEFT Charges |
|---|---|---|
State Bank of India (SBI) |
₹2 + GST |
₹20 + GST |
HDFC Bank |
₹2 + Applicable GST |
₹10 + Applicable GST |
ICICI Bank |
₹2.25 + Applicable GST |
₹24.75 + Applicable GST |
Axis Bank |
NIL |
NIL |
RBL Bank |
NIL |
NIL |
Canara Bank |
₹2.25 + GST |
₹24.75 + GST |
IndusInd Bank |
₹2.5 + GST |
₹50 + GST |
Union Bank of India |
₹2.5 + Taxes |
₹24.75 + Taxes |
Bank of Baroda |
₹2.25 + Applicable GST |
₹24.75 + Applicable GST |
Central Bank of India |
₹2.5 + GST |
₹25 + GST |
Punjab National Bank |
₹2.25 + GST |
₹24.75 + GST |
Indian Overseas Bank |
₹1.50 + GST |
₹24 + GST |
Bandhan Bank |
NIL |
NIL |
IDFC First Bank |
₹2.5 + GST |
₹25 + GST |
IDBI Bank |
NIL |
₹ 25 |
Kotak Mahindra Bank |
₹2 + GST |
₹24 + GST |
YES Bank |
₹2 + GST |
₹20 + GST |
South Indian Bank |
NIL |
₹25 + GST |
Federal Bank |
₹2.5 + GST |
₹15 + GST |
Bank of India |
₹2.5 + GST |
₹5 + GST |
Note: Charges are subject to change; please verify with your bank for the most current information. For the most accurate and up-to-date information, it's advisable to consult your bank's official website or contact their customer service.
Transferring funds through the National Electronic Funds Transfer (NEFT) system is a straightforward process. Here's a general guide:
Log in to your bank account using the internet banking portal or mobile banking app
Go to the 'Fund Transfer' or 'Payments' section on the dashboard
Enter beneficiary details such as name, account number, bank name, branch, and IFSC code if the beneficiary is not already added
Verify and confirm the beneficiary details to complete the addition process
Select 'NEFT' as the transfer mode once the beneficiary is active
Choose the source account, select the beneficiary, and enter the transfer amount along with remarks, if needed
Verify the transaction details and authenticate it using a One-Time Password (OTP) sent to your registered mobile number
Receive a confirmation message or transaction reference number once the transfer is successful
Both the sender and the beneficiary may receive notifications about the status of the transaction
Note: The exact steps may vary depending on your bank's interface. For specific instructions, refer to your bank's official website or contact their customer service.
NEFT offers several benefits that make it a preferred choice for secure and convenient fund transfers:
NEFT transactions can be initiated anytime, including weekends and public holidays.
Transferring funds through NEFT is simple, requiring only basic details like the beneficiary's account number and IFSC code.
NEFT is operated by the RBI, ensuring a high level of security and reliability in fund transfers.
NEFT allows fund transfers to any bank branch in India that is part of the NEFT network.
There is no minimum amount required for NEFT transactions, making it suitable for both large and small transfers.
NEFT fees are minimal compared to other payment methods like Demand Drafts or cheques.
Senders and receivers can track the transaction status using the Unique Transaction Reference (UTR) number.
NEFT can be used for multiple payments, such as credit card bill payments, loan EMI payments, and vendor payments.
Online NEFT transfers eliminate the need for paperwork, making it convenient and hassle-free.
NEFT allows individuals and businesses to transfer funds to a single recipient or multiple recipients in one go.
Online NEFT transactions are generally free, but banks may charge a fee for offline outward transactions made at a branch. Charges vary based on the bank's policies.
NEFT charges depend on the transaction amount and include applicable GST as per RBI guidelines.
Yes, as per RBI guidelines, banks are advised not to charge fees for NEFT transactions made by retail customers.
Yes, NEFT transactions can be made online 24/7, including Sundays and public holidays.
NEFT payments are usually settled within 2 hours of initiating the transaction.
Both NEFT and IMPS may attract nominal NEFT bank transfer charges depending on the transaction amount and the bank’s fee structure.
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