NEFT TRANSFER LIMIT

NEFT MEANING AND TRANSFER LIMIT

NEFT – National Electronic Fund Transfer

NEFT means the transaction of the money with the bank through electronic means all over the nation. NEFT can be used to transfer the fund from any branch of banks to another branch of another bank within little time. In the field of finance and banking, you will face a question that what is the meaning of NEFT?

 We should learn about the innovation in the modern banking that helps you to send money to anywhere in India within a short span of time. NEFT is controlled by the Reserve Bank of India which is the banker’s bank and the regulator and controller of banks and money.

NEFT started on November 2005. It is maintained by the Institute from Development and Research in Banking Technology (IDRBT).  Specialty of the NEFT is we can transfer amount from any branch of bank to any bank in the nation.

NEFT Transfer Limit

 The limits of amount that can transfer through NEFT (National Electronic Fund Transfer) differs from the bank to bank according to their policies and regulations.

 Although we can commonly transfer the amount of Rupees.2 lakh per transaction on the working days with the time of evening 7 pm to morning 7 am.

On RBI working days, morning 7 am to evening 7 pm, we can transfer funds through NEFT upto rupees 25 lakhs

If you visit the branch at the branch working hours, there is no maximum limit for the NEFT transfer. The minimum limit for the NEFT transfer is Rupee 1 Only.

NEFT Time Limit

The NEFT transaction is available in 24 * 7, which means throughout a year. Bank holidays and branch working hours doesn’t affect the NEFT transactions.

NEFT Facts

Banks should maintain enough balance in the current account with Reserve Bank of India to perform the NEFT without any hindrances or delays. Earlier banks imposed fees on the NEFT transactions and as per the Reserve Bank of India’s circular; banks should not impose fees on the NEFT transactions from 1st July 2019.

The removal of fees is to promote the online transactions than the liquid money transactions. It will reduce the use of paper currency which helps to conserve the nature by reducing the paper making.

NEFT is done via electronic message. Unlike RTGS, NEFT is not on real time basis. Earlier there were 23 settlements which have an interval of half an hour but now the situation and the technology changed and there is 48 settlement cycles which have an interval of half an hour. I personally used the NEFT and RTGS servies of icici bank, online sbi, federal bank, south Indian bank, axis bank etc.