Banking Awareness is an important section which every Bank Exam Aspirant must master. With that in mind , the following post on NEFT has been made. In recent times after demonetization most segments of this country is using some electronic/digital method of payment.
NEFT (full form) – National Electronic Funds transfer
q. what is neft?
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.
Also note the bank does require an IFSC code to complete the transaction. Some banks even offer the NEFT transfer through their ATMs.
Now that brings us to another important question “Whats is an IFSC code?”
An IFSC code is simply a alphanumeric code made up of 11 characters which is unique and assigned to a specific branch for any bank that functions under the NEFT network in India. The bank branch should be a part of the NEFT network along with RTGS services. It is important to know that an IFSC code can be broken down into 3 specific parts:
- First four: bank code
- Fifth one: 0 (always)
- Last six: branch code
Q. What are the transaction charges?
a) Inward transactions at destination bank branches (for credit to beneficiary accounts)
– Free, no charges to be levied on beneficiaries
b) Outward transactions at originating bank branches – charges applicable for the remitter
– For transactions up to ₹ 10,000 : not exceeding ₹ 2.50 (+ Applicable GST)
– For transactions above ₹ 10,000 up to ₹ 1 lakh: not exceeding ₹ 5 (+ Applicable GST)
– For transactions above ₹ 1 lakh and up to ₹ 2 lakhs: not exceeding ₹ 15 (+ Applicable GST)
– For transactions above ₹ 2 lakhs: not exceeding ₹ 25 (+ Applicable GST)
From July 10, 2017 settlements of fund transfer requests in NEFT system is done on half-hourly basis. There are twenty three half-hourly settlement batches run from 8 am to 7 pm on all working days of week. Including Saturdays
Limit on transaction:
No. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to ₹ 50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.
benefits of using neft:
- The remitter need not send the physical cheque or Demand Draft to the beneficiary.
- The beneficiary need not visit his / her bank for depositing the paper instruments.
- The beneficiary need not be apprehensive of loss / theft of physical instruments or the likelihood of fraudulent encashment thereof.
- Cost effective.
- Credit confirmation of the remittances sent by SMS or email.
- Remitter can initiate the remittances from his home / place of work using the internet banking also.
- Near real time transfer of the funds to the beneficiary account in a secure manner.
latest news about neft:
No Transaction Fee for NEFT, RTGS in HDFC Bank:
All online fund transfers initiated through NEFT and RTGS can be made free of cost in HDFC Bank. This move has been implemented from November 1, 2017.
Q. what is the difference between rtgs and neft?
P.S – Transaction Charges + GST
A Range of Free Mock Tests for you