NEFT Charges

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:

Transferring funds through the National Electronic Funds Transfer (NEFT) system is a straightforward process. Here's a general guide:

1. Log in to your bank account using the internet banking portal or mobile banking app

2. Go to the 'Fund Transfer' or 'Payments' section on the dashboard

3. Enter beneficiary details such as name, account number, bank name, branch, and IFSC code if the beneficiary is not already added

4. Verify and confirm the beneficiary details to complete the addition process

5. Select 'NEFT' as the transfer mode once the beneficiary is active

6. Choose the source account, select the beneficiary, and enter the transfer amount along with remarks, if needed

7. Verify the transaction details and authenticate it using a One-Time Password (OTP) sent to your registered mobile number

8. Receive a confirmation message or transaction reference number once the transfer is successful

9. 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:

24x7 Availability

NEFT transactions can be initiated anytime, including weekends and public holidays.

Ease of Use

Transferring funds through NEFT is simple, requiring only basic details like the beneficiary's account number and IFSC code.

Secure and Reliable

NEFT is operated by the RBI, ensuring a high level of security and reliability in fund transfers.

Nationwide Coverage

NEFT allows fund transfers to any bank branch in India that is part of the NEFT network.

No Minimum Transaction Limit

There is no minimum amount required for NEFT transactions, making it suitable for both large and small transfers.

Cost-effective

NEFT fees are minimal compared to other payment methods like Demand Drafts or cheques.

Real-time Tracking

Senders and receivers can track the transaction status using the Unique Transaction Reference (UTR) number.

Multiple Payment Modes

NEFT can be used for multiple payments, such as credit card bill payments, loan EMI payments, and vendor payments.

No Physical Documentation Required

Online NEFT transfers eliminate the need for paperwork, making it convenient and hassle-free.

Supports Individual and Bulk Payments

NEFT allows individuals and businesses to transfer funds to a single recipient or multiple recipients in one go.