The full form of NEFT is National Electronic Funds Transfer.
Meaning of NEFT
What used to happen in earlier times, we had to go to the bank to transfer money to anyone. And in the bank, we had to stand in line for hours. That form had to be filled through which we could transfer money to someone else’s account. If you have knowledge of internet banking, you can also transfer money to anyone sitting at home.
How can you deposit an account with a bank?
For example, your account is in SBI and you have to transfer money and their account is in Bank of Baroda. If you want to transfer, you can easily get it from NEFT.
It involves how much amount is minimum and how much is the maximum amount to be transferred.
There is no minimum amount and the maximum amount in NEFT. You can transfer even one rupee at any time and there is no maximum limit. You can transfer as much money as you want.
If you want to transfer money to someone during NEFT, its time is 8 am to 6:30 pm and it is open Monday to Saturday.
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Which closures are NEFT?
The day you cannot transfer money is the 2nd and 4th Saturday. These two days you cannot transfer money through NEFT. Even on Bank Holidays, you cannot transfer money through NEFT.
Now comes the matter of charges.
If you use NEFT, then charges will be incurred. NEFT charges the least, there is no maximum charge for any transfer. Each bank has different charges. If you want to know how much your bank is charging, then you can find out by searching on Google.
Where can we use NEFT?
We can transfer NEFT anywhere and to anyone, you can transfer anywhere you are sitting. NEFT is controlled by RBI and you can transfer money to anyone in the country at any time. And you can also NEFT online by going to the bank.
What are the benefits of NEFT?
- Through NEFT, any firm individual or corporation, etc. can easily send money from one account to another.
- Beneficiary Customer: The money that is sent is called Beneficiary Customer. There is no need for them to go to the bank to receive funds nor to do any paper formalities.
- The fees in NEFT are very low as compared to any other electronic fund transfer.
- Internet Banking: Money transfer can be done from anywhere and anytime using Internet Banking. And it is very safe and secure. If you cannot get a transaction due to any tax year, then whatever money is transferred to you, it will be returned to you in due course. So there is no need to panic.
- Here the receiver does not have to pay any additional cost.
- Each batch is one hour i.e. one-hour batch transfer is done through NEFT.
Is having IFSC Code in NEFT mandatory for all NEFT Transactions?
Yes, it is very important to have IFSC Code, any NEFT is required for the transaction.