Here’s what you need to know about charges levied on NEFT transactions.
Operated by the RBI, National Electronic Funds Transfer (NEFT) is a centralised payments system that facilitates near real-time fund transfers. However, to enjoy this quick, simple, and convenient mechanism of money transfer, you may have to pay certain NEFT fees.
As per the RBI guidelines, banks do not levy any fee for inward transactions at destination bank branches through this facility. For outward transactions, the RBI ceased to charge any fee on member banks from July 1, 2019.
The RBI has also advised banks to not levy NEFT charges on savings bank account holders to promote digital retail transactions. However, banks can levy a fee on these charges on other outward transactions if they prefer.
Here’s the maximum limit for bank NEFT charges as outlined by the RBI:
For transfers up to ₹10,000, you must pay a maximum amount of ₹2.50 (plus GST)
For transfers above ₹10,000 and less than ₹1 Lakh, you must pay a maximum amount of ₹5 (plus GST)
For transfers above ₹1 Lakh and less than ₹2 Lakhs, you must pay a maximum amount of ₹15 (plus GST)
For transfers above ₹2 Lakhs, you must pay a maximum amount of ₹25 (plus GST)
The NEFT bank charges may vary depending on where you have opened your savings account. Here are the charges levied by a few banks:
Bank |
NEFT Charges (Minimum) |
NEFT Charges (Maximum) |
State Bank of India (SBI) |
₹2 + GST |
₹20 + GST |
HDFC Bank |
₹2 + Applicable GST |
₹10 + Applicable GST |
ICICI Bank |
₹2.25 + Applicable GST |
₹24.75 + Applicable GST |
Axis Bank |
NIL |
NIL |
RBL Bank |
NIL |
NIL |
Canara Bank |
₹2.25 + GST |
₹24.75 + GST |
IndusInd Bank |
₹2.5 + GST |
₹50 + GST |
Union Bank of India |
₹2.5 + Taxes |
₹25 + Taxes |
Bank of Baroda |
₹2.25 + Applicable GST |
₹24.75 + Applicable GST |
Central Bank of India |
₹2.5 + GST |
₹25 + GST |
Punjab and National Bank |
₹1.75 + GST |
₹24.25 + GST |
Indian Overseas Bank |
₹1 + GST |
₹19 + GST |
Bandhan Bank |
₹2 + GST |
₹14 + GST |
IDFC First Bank |
NIL |
NIL |
IDBI Bank |
NIL |
25 |
Kotak Mahindra Bank |
₹2 + GST |
₹24 + GST |
YES Bank |
₹2 + GST |
₹20 + GST |
South Indian Bank |
₹1.25 + GST |
₹22 + GST |
Federal Bank |
₹2.5 + GST |
₹25 + GST |
Bank of India |
₹2.5 + GST |
₹25 + GST |
Disclaimer: The charges can vary at the discretion of the bank. Please check the bank website to get the exact charges.
Frequently Asked Questions
What are the charges on NEFT?
While there are generally no NEFT charges for online transactions, banks levy a fee if you make an outward transaction offline from the bank. These charges may vary depending on your bank’s policies.
How are NEFT charges calculated?
The NEFT rates vary based on the amount you transfer; the fees would include the applicable GST charges, too.
Can NEFT charges be waived?
The RBI has advised banks not to levy a fee when retail customers opt for the NEFT facility.
Can I make NEFT transfers on Sundays?
Yes, if you make these transactions online, you can use this electronic payment mechanism 24/7, even on weekends and holidays.
How long does it take for NEFT payments to be processed?
It may take 2 hours for the settlement of transactions made through this payment system.
Is NEFT or IMPS chargeable?
NEFT and IMPS transactions may attract nominal charges depending on the amount you transfer and your bank’s policies.
