NEFT Transfer Limit
For most users, National Electronic Funds Transfer has made daily banking exceedingly convenient. You can use NEFT to make online and offline fund transfers utilising specified beneficiary account data and a unique 11-digit IFSC code issued to the payee. RTGS, IMPS, and UPI, in addition to NEFT, are the current funds' transfer options. Most consumers, however, prefer NEFT due to the inexpensive processing fees, high NEFT transfer Limit, and fewer restrictions on the cash transmitted.
What is NEFT
- National Electronic Funds Move (NEFT): NEFT allows a person to electronically transfer funds from one bank account to another in the same or another bank. Batches of transfers are scheduled every half hour. This does not happen in real-time.
- Under the NEFT transfer limit, the minimum transaction amount is one rupee, while the maximum transfer limit varies by bank. For example, the maximum NEFT transfer limit is Rs. 20 lakhs per day through IDFC First Bank and Rs. 10 lakhs per day through ICICI Bank.
- There are no fees or charges for NEFT transfers made through a bank's mobile app or net banking. If one visits a branch for an NEFT transfer, however, there will be fees. ICICI Bank, for example, charges fees ranging from Rs. 2.25 to Rs. 24.75 + GST, depending on the transaction value.
- NEFT is supported by several banks around the country, and remittances to Nepal are also possible. It can even be used to pay your credit card bills.
- NEFT Time limit — Unlike RTGS, NEFT settlement does not occur in real-time. It occurs on an hourly basis. Within two hours, the funds are credited to the beneficiary's account. NEFT is now available 24 hours a day, seven days a week.
NEFT transaction process
Customers must fill out a form with beneficiary information to transfer funds from a remitting account to a beneficiary account (account no., account holder name, IFSC code, amount to be transferred and account type). This form is available at any NEFT branch, as well as online via internet banking and mobile banking services.
NEFT transaction steps are as follows:-
The transaction is started by the remitting bank, which then sends the message to the NEFT central service.
The service centre gets the message and forwards it to the RBI-controlled NEFT clearing centre, along with the details of the next batch available for the transaction.
The clearing centre classifies transactions by bank and creates accounting entries to receive funds from remitting banks and send funds to the beneficiary bank.
The clearing centre sends a notification to the destination bank instructing it to credit the beneficiary customer's account.
Customers do not have to pay any fees when using NEFT.
- NEFT transactions initiated online via internet/mobile banking are free of charge. Processing fees for NEFT transactions are calculated based on the amount you transfer, as shown below:
- Beneficiaries are not charged for inward transactions at destination bank branches (for credit to their accounts).
Charges applied to the remitter for outward transactions at originating bank branches are as follows:-
NEFT Transfer Amount
For transactions up to Rs.10000
Not exceeding Rs.2.50 + GST
For transactions above Rs. 10000 to Rs. 1 lakh
Not exceeding Rs.5 + GST
For transactions above Rs. 1 lakh and up to Rs. 2 lakh
Not exceeding Rs.15 + GST
For transactions above Rs. 2 lakh
Not exceeding Rs.25 + GST
NEFT transfer limit
- The primary advantage of NEFT transfers is that there are no limits on the minimum and maximum amounts that can be transferred. The smallest amount that can be transmitted is Rs.1, while the minimum limit for other fund transfer options such as RTGS is Rs.2 lakh.
- The Reserve Bank of India (RBI) has not set a maximum sum for NEFT transactions. The bank with which you have your account may, however, set a limit. For example, HDFC Bank's NEFT Transfer Limit via online NEFT Transfer is Rs.25 lakh per day per user ID.
- Cash transactions are limited to a maximum of Rs.50000 per transaction. The overall amount you can transfer, however, is unrestricted.
NEFT Time limit
- The Reserve Bank of India (RBI) has made the NEFT system open 24 hours a day, seven days a week, 365 days a year. NEFT is currently running in half-hourly batches throughout the day.
- Previously, the NEFT facility was open from 8 a.m. to 7 p.m. on all working days (Except the 2nd and 4th Saturday of the month). As previously stated, NEFT uses a batch-by-batch clearing technique. This means that all NEFT requests are queued and cleared in accordance with the settlement batches.
- For requests made after hours on Saturday, the next available session was Monday morning, or, in the case of holidays, the morning clearance time of the next working day.
Benefits of NEFT
There are various factors that make NEFT fund transfers a viable offer.
You don't have to send money via check, demand draught, or physical form to send money to someone.
You can start the procedure utilising net banking or phone banking immediately from your phone or the comfort of your own home.
You can conduct banking transactions without going to a branch.
The convenience doesn't end there; the beneficiary doesn't even have to go to a bank branch to get the funds.
The RBI imposes specific systems that allow both the sender and the receiver to receive SMS or email notifications.
And, most importantly, money is available to the other party within an hour or less, without you having to worry about the funds' safety.
Frequently asked questions
1. How do you distinguish between NEFT, RTGS, and IMPS?
Online fund transfer systems such as NEFT, RTGS, and IMPS make it simple to move money from one bank account to another. Each has its own distinct characteristics, and all three are distinct due to the following factors:
Money transfer schedule
The minimum and maximum amounts that can be transmitted
Individuals or business use
2. Is NEFT a more secure option than IMPS?
When it comes to funding transfers between bank accounts, both NEFT and IMPS guarantee the same level of security. If a fund transfer is not urgent and the sum is less than Rs. 10,000, NEFT is the best option. This is because the applicable service tax in NEFT is substantially lower than in IMPS.
3. Is the IMPS transfer free of charge?
The cost of an IMPS fund transfer ranges from Rs. 2.50 to Rs. 25 per transaction. These may differ between banks.
4. What is the NEFT daily limit?
For NEFT transactions, there is no maximum or minimum amount. However, each bank's NEFT services may be subject to specific restrictions. For example, if a transaction is completed online, HDFC Bank has an NEFT Transfer Limit of Rs. 25 lakhs per day per user ID.
5. Is NEFT now available 24 hours a day, 7 days a week?
NEFT is accessible 24 hours a day, seven days a week, 365 days a year. NEFT transactions made outside of regular banking hours are automated and started by the banks utilising 'Straight Through Processing (STP).'