What is NEFT Net Transfer?

NEFT is an abbreviated form of National Electronic Funds Transfer which is a nation-wide system of electronically fund transfer from any bank branch to any other bank branch in the country. It allows the fund transfer from any individual or firm to any other individual or firm across the country. In order to facilitate fund transfer between bank accounts of different banks branches, it is necessary that participating bank branches should be NEFT-enabled. Majority of the bank branches in the country are NEFT enabled with 74,680 branches out of 82,400 bank branches.

One can see the list of NEFT enabled bank branches in the country on the website of RBI at http://www.rbi.org.in/scripts/neft.aspx.

What is NEFT Net Transfer? Eligibility for NEFT Fund transfer

It is possible for Individuals, firms or corporates to transfer funds using NEFT if they have an account with NEFT enabled bank branch. In fact, individuals, firms or corporates without any bank account can also deposit cash at any NEFT-enabled branch along with necessary instructions for transferring funds using NEFT. To facilitate the walk in customers who do not have bank account but want to deposit cash in beneficiary account, a separate Transaction Code (No. 50) has been allocated in the NEFT system. These customers are required to furnish complete details including complete address, telephone number, etc.

In order to receive funds via NEFT, it is mandatory for a beneficiary including Individuals, firms or corporates; to maintain accounts with NEFT enabled bank branchin the country.

Limits of funds transfer

There are no minimum or maximum limit on the amount of funds to be transferred using NEFT.

The maximum limit for walk in customers under Indo-Nepal Remittance Facility SchemeisRs 49,999.


NEFT operates in hourly batches with 11 settlements takes place from 9 am to 7 pm on week days. On Saturdays, it operates five settlements from 9 am to 1 pm.

Pre-requisites for NEFT transaction

The pre-requisites for initiating funds transfer using NEFT are the following.

Both the remitting customer branch (originating) and beneficiary customer branch (destination) should be NEFT enabled branches

Beneficiary details required for completing NEFT transaction include account number, beneficiary name and account type.

Name and IFSC code of the beneficiary bank branch. In case of net banking customers, IFSC code automatically pops up once the destination bank and branch is selected.

Charges for NEFT transaction

Member banks participating in NEFT are not required to pay any service charges to RBI till 31 March 2011. Consequently, member banks have also pass on the benefit to their customers.

Inward transactions: There are no charges levied from beneficiariesat destination bank branches

Outward transactions: The charges applicable at originating bank branches are as follows:

Rs 1 lakh – not exceeding Rs 5 and service Tax

Rs 1 lakh – Rs 2 lakhs – not exceeding Rs 15 and service Tax

Above Rs 2 lakhs – not exceeding Rs 25 and service Tax

Security of Transaction

NEFT uses a very secure mode of transferring funds between bank branches. It also makes use of Public Key Infrastructure (PKI) technology for ensuring end-to-end security.