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Sending money from one bank account to another should be quick, safe, and simple. National Electronic Funds Transfer (NEFT) helps you do just that without any confusion or delay. It runs 24x7, works across all major banks, and lets you transfer funds securely using mobile or internet banking.
By understanding how NEFT works, you can avoid mistakes, save time, and stay in control of your payments. You’ll also gain clarity on the NEFT transaction time, charges, and transfer limits—key details that many overlook. Learning how to use NEFT correctly ensures your money always reaches the right place, at the right time.
NEFT stands for National Electronic Funds Transfer. It is a secure and RBI-approved system that lets you transfer money from one bank account to another within India. You can use it for both personal and business payments. NEFT works in half-hourly batches throughout the day and night, including weekends and holidays.
This means your money does not move instantly but reaches the other person’s account within a few hours. Since there is no minimum amount needed, you can use it for small or large transfers. The system is simple, safe, and widely used for online payments between banks.
NEFT follows a simple process managed by banks and the RBI to ensure your money is transferred safely and reliably. Here’s how each step works:
You enter the beneficiary’s details and start the NEFT transfer using internet banking, mobile banking, or by visiting your bank
Your bank collects the transaction information and sends it to the NEFT Service Centre for processing
The NEFT Service Centre groups transactions into batches based on the beneficiary’s bank
RBI’s NEFT system receives these batches and forwards them to the correct banks for settlement
Your bank debits the amount and transfers the funds to the RBI for clearing
RBI sends the funds to the beneficiary’s bank, which credits them to the beneficiary’s account
Both you and the beneficiary receive a confirmation message after the NEFT transfer is complete
Here are the main reasons why NEFT is a trusted and convenient option for sending money securely across India:
NEFT lets you transfer funds at any time, including nights, weekends, and holidays, without depending on bank working hours.
The system follows strict guidelines set by the Reserve Bank of India, ensuring high security and trust for every transaction.
You can complete NEFT transfers easily using mobile or internet banking without filling forms or standing in queues.
NEFT supports all amounts, from small personal transfers to large business payments, with no minimum limit.
It is used by individuals, businesses, institutions, and government offices for smooth and regular fund transfers.
NEFT is supported by almost all Indian banks, allowing transfers between different banks across the country.
You only need account and IFSC details to transfer money digitally, avoiding physical handling of funds.
NEFT makes digital payments easy for anyone with a bank account in India, whether you use online banking or visit the branch. Here are the groups who can use NEFT:
Individuals can use NEFT to send money to family or pay household bills
Businesses use NEFT to pay vendors, suppliers, and service providers
Schools and colleges collect fees and other payments using NEFT
Tenants pay monthly rent directly to their landlord’s bank account
Freelancers and professionals receive client payments and pay service partners through NEFT
To complete an NEFT transfer, you must provide correct beneficiary and transaction details. Any errors can cause delays or failure. Here are the details you need to provide:
Beneficiary’s Name: The full name of the person or business receiving the funds
Beneficiary’s Account Number: The correct bank account number where the money should be credited
Beneficiary’s Bank Name: The name of the bank where the beneficiary holds the account
Bank Branch IFSC Code: A unique code that identifies the beneficiary’s bank branch for processing the NEFT transaction
Transfer Amount: The exact amount you wish to send as part of the NEFT transaction
Purpose of Transfer (Optional): A brief reason for the payment, which helps with record-keeping
Your Authentication Details: OTP or internet banking password to approve and complete the transaction
NEFT and RTGS are both digital payment methods used to transfer money between bank accounts. However, they differ in terms of speed, value limits, and settlement type. Here's a clear comparison to help you choose the right one based on your needs:
Feature |
NEFT (National Electronic Funds Transfer) |
RTGS (Real-Time Gross Settlement) |
|---|---|---|
Settlement Type |
Processed in batches every 30 minutes |
Processed instantly and individually |
Transfer Speed |
Usually takes 2 to 4 hours, depending on NEFT transaction time |
Transfers happen in real time |
Minimum Limit |
No minimum amount required |
Minimum amount of ₹2 Lakhs is required |
Maximum Limit |
Depends on your bank’s NEFT transfer limit |
Usually higher, based on your bank’s RTGS transfer policy |
Best For |
Everyday personal or business payments |
High-value, urgent transfers |
Availability |
24x7, including weekends and bank holidays |
24x7, including weekends and bank holidays |
NEFT Transfer Charges |
May apply for branch transfers; usually free online |
Charges may apply, especially for high-value transfers |
Features of NEFT |
Safe, flexible, widely used across India |
Fast, ideal for time-sensitive, large transactions |
Both systems are secure and managed by the RBI. Choose NEFT for regular payments and RTGS when time and high value are important.
NEFT transfer charges depend on how and where you initiate the transaction. If you transfer money using internet or mobile banking, most banks do not charge any fees. However, if you visit a bank branch to make the transfer, charges may apply based on the amount you send.
These charges are paid only by the person initiating the NEFT transfer. The person receiving the money is not charged. Charges also vary slightly between banks, so it’s best to confirm with your bank before making a transaction. Here are the standard NEFT transfer charges for branch-initiated transactions:
Up to ₹10,000: ₹2.50 + GST
₹10,001 to ₹1 Lakhs: ₹5.00 + GST
₹1 Lakh to ₹2 Lakhs: ₹15.00 + GST
Above ₹2 Lakhs: ₹25.00 + GST
Some banks may offer free NEFT transfers for a certain number of transactions each month, depending on your account type. Always check your bank’s latest policy on NEFT transfer charges before making a payment.
Here are key reasons why your NEFT transfer may get delayed, helping you avoid common issues and plan your transactions more effectively:
High traffic or maintenance at your bank may slow down processing and extend the NEFT transaction time.
If the account number or IFSC code is wrong, the bank may reject or delay the NEFT transfer.
Temporary technical issues between banks or at RBI’s NEFT system may cause minor settlement delays.
NEFT transactions may take longer during salary dates or month-end due to high volumes.
Though NEFT works 24x7, large volumes during holidays may still slow down processing at some banks.
Some banks delay NEFT transfers to new payees for security, usually for a few hours.
If your account lacks funds, the NEFT request won’t be processed until the issue is resolved.
There is no fixed NEFT transfer limit set by the Reserve Bank of India, but individual banks may apply their own limits based on your account type and usage. These limits can vary depending on whether the payee is new or already registered, and they help prevent fraud or unauthorised transfers.
For example:
Some banks may allow daily transfers up to ₹10 Lakhs for verified users
Transfers to newly added payees may be limited to ₹2 Lakhs for the first 24 hours
You can easily check your NEFT transfer limit through your banking app, internet banking, or by contacting your bank’s customer care.
Using NEFT the right way helps you avoid delays and ensures your money reaches the correct account. Here are a few simple tips to follow:
Always double-check the account number and IFSC code before making the NEFT transfer
Add a new payee a few hours in advance to avoid delays caused by activation time
Try to avoid last-minute NEFT transfers late at night or during high-traffic hours
Keep your internet or mobile banking app updated for smoother and more secure transactions
Save or screenshot the confirmation message for future reference or in case of any issues
NEFT is a simple, secure, and widely trusted way to send money in India. Whether you’re paying rent, sending money home, or settling business bills, it gives you complete control. By understanding how NEFT works, knowing the NEFT transfer charges, and staying aware of the NEFT transaction time, you can avoid delays and enjoy hassle-free banking. Now that you know the NEFT transfer limit and the difference between NEFT and RTGS, you’re ready to use NEFT confidently for your everyday financial needs.
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