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National Electronic Fund Transfer is a country wide electronic fund transfer system. It is used for sending money from one bank account to another in a safe and hassle-free manner.


Reserve Bank of India has a funds transfer system called “National Electronic Funds Transfer” System.

NEFT (National Electronic Fund Transfer) is a system that comes under the Inter Bank Transfer. This system is maintained by Reserve Bank of India.

National Electronic Fund Transfer is a country wide electronic fund transfer system. It is used for sending money from one bank account to another in a safe and hassle-free manner. Money can be sent using this system to all NEFT enabled banks in India on an individual basis. To start a NEFT transfer, Bank IFSC Code is a must. Along with that other details such as bank account number, bank branch and account holder name are also required.

NEFT operates on a Deferred Net Settlement basis. Fund transfer transactions are settled in batches. In RTGS transactions are settled on a continuous, individual basis. Presently, NEFT operates in half hourly batches.

Which Banks are NEFT enabled?

NEFT services are enabled only in specific bank branches across the country. For being part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled. The list of banks which provide NEFT facility can be found on the website of Reserve Bank of India (

Mostly all the top private, public, co-operative and sahakari banks provide the NEFT facility to their customers.

Who can make use of the NEFT Facility?

  • To Transfer Funds –

Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even individuals who do not have a bank account (walk-in customers) can also deposit cash at the NEFT enabled branches with instructions to transfer funds using NEFT. But, such cash remittances will be restricted to a maximum of Rs. 50,000/- per transaction. Such customers have to give full details like complete address, telephone number, etc. Thus, NEFT facilitates originators or remitters to start funds transfer transactions even without having a bank account.

  • To Receive Funds –

Individuals, firms or corporates maintaining accounts with a bank branch can receive funds through the NEFT system. Thus, it is necessary for the beneficiary to have an account with the NEFT enabled destination bank branch in the country.

Benefits of NEFT

NEFT offers many benefits over the other modes of funds transfer:-

NEFT Benefits

Timings for NEFT Transactions

The operating hours of NEFT are from 8.00 a.m. to 7.00 p.m. on all working days, i.e Monday to Saturday. (Excluding on 2nd and 4th Saturdays of the month).

Also, NEFT transactions do not get credited on public holidays and bank holidays.

But, the sender can queue in the transaction for the recipient. It will be credited when NEFT picks it up their next working hour and day.

Charges for NEFT

The structure of charges that can be levied on the customer for NEFT is as follows:-

  • No charges have to be paid for receiving money through NEFT.
  • Following charges are levied for sending money through NEFT. These charges are standard across all the bank branches.
NEFT Charges
  • Effective from 1st July 2011, originating banks are required to pay a nominal charge of 25 paise per transaction to the clearing house as well as destination bank as service charge. But, these charges cannot be passed on to the customers by the banks.

 NEFT Transaction Limits

There is no limit on the amount that can be transferred through NEFT. There is NO minimum or maximum limit on the amount of funds that can be transferred through NEFT.

But, maximum amount per transaction is limited to Rs. 50,000/-

 Process of NEFT

Following steps are there in a NEFT transaction process:-

  1. Customer has to fill an application form provide details of the beneficiary and the amount to be remitted. The details include name, bank, branch name, IFSC, account type and account number. The remitter authorizes his/her bank branch to debit his account and remit the specified amount to the beneficiary. This facility is also available through online banking and some banks offer the NEFT facility even through the ATMs.
  2. The originating bank branch prepares a message and sends the message to its pooling centre.
  3. The pooling centre forwards the message to the NEFT Clearing Centre to be included for the next available batch.
  4. The Clearing Centre sorts the funds transfer transactions destination bank-wise. It prepares accounting entries to receive funds from the originating banks (debit) and give the funds to the destination banks (credit). After that, bank-wise remittance messages are forwarded to the destination banks through their NEFT Service Centre.
  5. The destination bank receives the inward remittance message from the Clearing Centre. They then pass on the credit to the beneficiary customers’ accounts.
NEFT Fund Transfer Process

Below is a model of the physical NEFT form that has to be filled.


Online NEFT Transfer Process

The process for transferring funds money via NEFT online is given below:-

Step 1: Login to your net banking account. If you do not have a net banking account then register for it on the website of your bank.

Step 2: Add the beneficiary (to whom the money is to be sent) as a payee. To do so, you have to enter the following details about the beneficiary in the ‘Add New Payee’ section:

  • Account Number.
  • Name
  • IFSC Code.
  • Account Type [Savings or Current]

Step 3: Once the payee is added, choose NEFT as mode of Fund Transfer.

Step 4: Select the account you wish to transfer money from, select the payee, enter the amount that you wish to transfer and add remarks if any (optional).

Step 5: Click on submit. The money will be sent to the beneficiary account.

 Other Transactions that can be done through NEFT

Besides personal funds transfer, the NEFT system can also be used for a variety of transaction such as:-

  • Payment of credit card dues to the card issuing banks
  • Payment of loan EMI

In these cases, the IFSC and account number specified by card issuing bank and loan disbursing bank needs to be provided by the remitting customer.

There are also some other transactions that can be dome through NEFT system.

NEFT Complaint Mechanism

The mechanism for resolution of disputes will be in accordance with the Directive on Dispute Resolution Mechanism issued by RBI and as duly amended from time to time.

Only in very rare cases doest the fund doesn’t get transferred. If the customer faces any difficulty in the NEFT process, he/she can contact the bank via phone, fax or email. If you don’t hear back from the bank or they don’t resolve the issue, then you can contact RBI.

Below you can find the details for contacting RBI and top banks in case of any issues.

Customer Facilitaion Details
RESERVE BANK OF INDIATel: 022-22603329/ 
SFMS help for technical support related to
022-27595536 / 537
BANK OF MAHARASHTRATel: 022-22780324 /
 Fax: 022-22780330
CITI BANKTel: 022-40005706/
Fax: NIL
 Fax: 0484-2609705
HDFC BANKTel: 022-30752044/
022- 30751922 /
Fax: 022-25799814
ICICI BANK LIMITEDTel: 022- 33667777 & 040-
Fax: 040-41064450
IDBI BANKTel : 022-66908447/97/
Fax : Nil
IDFC BANK LIMITEDTel: 022-42423306/3348/3331/3312/
Fax: 022-22610781
STATE BANK OF INDIATel: 022 -27561665/27573270/
Fax: 022 – 27561664
YES BANKTel: 022-33478270,
Fax: NIL

How is NEFT different from RTGS?

RTGS was said to be the quickest way to transfer money online until UPI service was launched. The amount for transfer must be more than Rs. 2 Lakhs. It is one of the safest and secure channels for transferring money in the country. Same as NEFT, this form of transaction also requires knowing the IFSC code of the sender as well as the recipient. The requests are processed instantly post receipt but only in particular banking hours. There are no maximum amount limits for RTGS service.

You can also watch following video by YADNYA INVESTMENT ACADEMY on NEFT and various other Online Funds Transfer modes. The video is made as a comparison between the various online funds transfer modes.

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