NEFT full form means National Electronic Funds Transfer (NEFT) as its name suggests is a payment mechanism facilitating one-to-one funds transfer. Under NEFT, people can electronically transfer funds from one bank branch to some individual (with an account with a different bank branch) nationally. NEFT can be done through internet banking, mobile banking, and customer banking.
NEFT Full Form: National Electronic Funds Transfer
NEFT has the full form of National Electronic Funds Transfer(NEFT full form). This is called the National Electronic Fund Transfer in India. National Electronic Funds Transfer(NEFT full form) is a payment system that enables the electronic transfer of money from one bank to another bank account.
According to the Reserve Bank of India (RBI), money can be transferred by any person or company to a bank account of a person or company with any bank.
In today’s time, information about bank branches is a part of the National Electronic Funds Transfer (NEFT full form) system which can be seen on the RBI website. Currently, most banks in the country support NEFT payments. In NEFT, transactions are executed between half an hour.
There is no limit to the amount of money that can be transferred using the National Electronic Funds Transfer(NEFT full form). However, the maximum amount per transaction is limited to up to Rs 50,000 for cash-based haste within India and also for haste in Nepal under the India Nepal Hurry Facility Scheme, according to the RBI.
In today’s time, electronic or wire money transfers can be done in many ways. Electronic or e-transfer of funds refers to the transfer of funds from one bank account to another bank online over a network of computers, that is, without dealing with bank employees.
Money transfer can take place between the accounts of one bank or several banks. NEFT or National Electronic Funds Transfer(NEFT full form), RTGS, or Real Time Gross Settlement and IMPS or Intermediate Payment Service Today there are three such platforms for money transfer such as SBI NEFT, RTGS, IMPS.
How does NEFT work:
In simple words, if NEFT can easily transfer money from its account to the account of customer of any other bank holding any bank account. For this, you can go to your bank and fill the form and transfer money or you can transfer money from Net Banking or Mobile Banking yourself.
Also read: IMPS full form
The details of the name, bank, branch name, IFSC, account type and account number of the customer to whom the money transfer is made available to his bank and indicate the money to be transferred.
Also, the customer authorizes his bank branch to debit his account and transfer money. This facility is also available through Online Banking and some banks also provide NEFT facility through ATMs.
What is NEFT Charges:-
- 2 rupees 50 paise + Service Tax on the amount up to Rs 10,000 / –
- Rs. 5 + Service Tax on money amounting from Rs. 10,000 / – to Rs. 1,00,000 / –
- Rs. 15 + Service Tax on the amount of Rs. 1,00,000 / – to Rs. 2,00,000 / –
- 25, + Service Tax on money amounting from Rs. 2,00,000 / – to Rs. 5,00,000 / –
- From Rs. 5,00,000 / – to Rs. 10,00,000 / – on the amount of Rs. 50 + Service Tax
When you opt for a NEFT transfer to anyone, your bank deducts the amount from your account immediately. The same takes a few minutes to a few hours at the maximum to reach to the receiver’s bank account, subject to which clearing batch it is part of.
The sending, as well as the receiving bank, needs to be a part of the nationwide NEFT network to be able to facilitate electronic fund transfers. You should also be aware of the bank account details and IFSC code of the bank branch of the receiver.