NEFT - FAQs

This is the third post in the series of Jargons of Online Banking.

NEFT stands for National Electronic Funds Transfer. It facilitates electronic transfer of funds across various banks. Currently, not all the banks and branches are NEFT enabled. Latest list can be found from RBI site.

The NEFT system takes advantage of the centralized accounting system in banks. The account of a bank that originates or receives funds transfer instructions is operated centrally at Mumbai. However, the branches participating in NEFT can be located anywhere across the country.

Presently, there are six NEFT settlements at 9 AM, 11 AM, 12 PM, 1 PM, 3 PM and 5 PM on week days and three settlements at 9 AM, 11 AM and 12 PM on Saturdays. You must have noticed banking sites to be extremely slow on these times. :)

As per the RBI guidelines, receiver of funds through NEFT cannot be charged. Sender can be charged Up to Rs 5 for transactions up to Rs 1 Lakh and up to Rs 25 for transactions of and above Rs 1 Lakh.

Money will get credited in the receiver’s account on same day or next working day. In case there is any complaint regarding this, contact RBI's Customer Facilitation Center here.

IFSC codes are used to identify various banks-branches.

Tomorrow, read out to know how NEFT works.