NEFT – Total How to Guide

NEFT: National Electronic Fund TransferNEFT

NEFT as name itself suggests for general understanding, it is a settlement system where funds are transferred from one account in a bank to another account in different bank branch within India electronically (including NEPAL which is explained below).

There are quite a few questions which will arise such as fund limits, timing of transfers, service charges, etc., involved in NEFT, let us take each question at a time.

 

Who Can Send Funds Using NEFT?

Any Individual, Firm or a corporate entity which maintains an account with NEFT-enabled branch bank can avail this facility. Even individuals with no bank accounts can still send funds using NEFT by walking into a NEFT-enabled branch by filling up a NEFT form. However, the maximum one can send using this cash based facility (with no bank account) is Rs. 50,000/-. The sender has to provide all the necessary details such as full name, address, contact details, etc.

 

Who can Receive Funds using NEFT?

For this purpose, the Receiver is called as “Beneficiary”. Any Individual, Firm or Corporate Entity which maintains a bank account with NEFT enabled branch.

The NEFT system is also available between India and Nepal about which you can find full details here Indo-Nepal Remittance Facility Scheme

 

Which Banks Have NEFT Facility?

Any account holder to be part of a NEFT transaction his bank has to be a NEFT – enabled bank branch; as of July 2013 there are 147 Banks which has NEFT facility, each branch has a unique IFSC (Indian Financial System Code) . Go here to get IFSC codes of all the braches. Following are the banks which are NEFT enabled:

  1. Abu Dhabi Commercial Bank
  2. Abhyudaya Cooperative Bank
  3. Akola District Central Co-Operative Bank
  4. Allahabad Bank
  5. Almora Urban Co-Operative Bank ltd
  6. Andhra Bank
  7. Andhra Pragathi Grameena Bank
  8. Apna Sahakari Bank Ltd
  9. Australia and New Zealand Banking Group Ltd
  10. Axis Bank
  11. Bank of America
  12. Bank of Bahrein and Kuwait
  13. Bank of Baroda
  14. Bank of Ceylon
  15. Bank of India
  16. Bank of Maharashtra
  17. Bank of Tokyo Mitsubishi UFJ Ltd
  18. Barclays Bank
  19. Bassein Catholic Co-Op Bank Ltd
  20. BN Paribas Bank
  21. Commonwealth Bank of Australia
  22. Canara Bank
  23. Capital Local Area Bank Ltd
  24. Catholic Syrian Bank
  25. Central Bank of India
  26. Chinatrust Commercial Bank
  27. CITI Bank
  28. Citizen Credit Cooperative Bank
  29. City Union Bank Ltd
  30. Corporation Bank
  31. Credit Agricole Corporate and Investment Bank
  32. Credit Suisse AG
  33. DBS Bank Ltd
  34. Dena Bank
  35. Deutsche Bank
  36. Development Credit Bank Ltd
  37. Dhanlaxmi Bank Ltd
  38. DICGC
  39. Dombivli Nagari Sahakari Bank Ltd
  40. Firstrand Bank Ltd
  41. Gurgaon Gramin Bank Ltd
  42. HDFC Bank Ltd
  43. HSBC
  44. ICICI Bank Ltd
  45. IDBI Ltd
  46. Indian Bank
  47. Indian Overseas Bank
  48. Indusind Bank Ltd
  49. ING Vysya Bank Ltd
  50. Jalgaon Janata Sahkari Bank Ltd
  51. Jankalyan Sahakari Bank Ltd
  52. Janata Sahakari Bank Ltd (Pune)
  53. Janaseva Sahakari Bank Ltd (Pune)
  54. JPMorgan Chase Bank NA
  55. Kallappanna Awade Ich Janata S Bank
  56. Kapole Cooperative Bank
  57. Karnataka Bank Ltd
  58. Karnataka Vikas Grameena Bank
  59. Karur Vysya Bank
  60. Kotak Mahindra Bank
  61. Kurmanchal Nagar Sahkari Bank Ltd
  62. Mahanagar Cooperative Bank Ltd
  63. Maharastra State Cooperative Bank
  64. Mashreq Bank
  65. Mizuho Corporate Bank Ltd
  66. Mumbai District Central Co-Op Bank Ltd
  67. Nagpur Nagrik Sahakari Bank Ltd
  68. National Australia Bank
  69. New India Cooperative Ban Ltd
  70. NKGSB Cooperative Bank Ltd
  71. North Malabar Gramin Bank
  72. Nutan Nagarik Sahakari Bank Ltd
  73. Oman International Bank
  74. Oriental Bank of Commerce
  75. Parsik Janata Sahakari Bank Ltd
  76. Prathama Bank
  77. Prime Co-Operative Bank Ltd
  78. Punjab and Maharashtra Cooperative Bank Ltd
  79. Punjab and Sind Bank
  80. Punjab National Bank
  81. Rabobank International (CCRB)
  82. Rajkot Nagarik Sahakari Bank Ltd
  83. Reserve Bank of India
  84. SBER Bank
  85. Shinhan Bank
  86. Shri Chhatrapati Rajarshi Shahu Urban Co-Op Bank Ltd
  87. Societe Generale
  88. South Indian Bank
  89. Standard Chartered Bank
  90. State Bank of Bikaner and Jaipur
  91. State Bank of Hyderabad
  92. State Bank of India
  93. State Bank of Mauritius Ltd
  94. State Bank of Mysore
  95. State Bank of Patiala
  96. State Bank of Travancore
  97. Sumitomo Mitsui Banking Corporation
  98. Syndicate Bank
  99. Tamil Nadu Mercantile Bank
  100. Thane Bharat Sahakari Bank Ltd
  101. The A.P. Mahesh Co-Op Urban Bank Ltd
  102. The Andhra Pradesh State Coop Bank Ltd
  103. The Ahmedabad Merc. Cooperative Bank
  104. The Bank of Nova Scotia
  105. The Bharat Cooperative Bank Ltd
  106. The Cosmos Cooperative Bank Ltd
  107. The Federal Bank Ltd
  108. The Gadchiroli District Central Cooperative Bank Ltd
  109. The Greater Bombay Co-operative Bank Ltd
  110. The Gujarat State Co-Operative Bank Ltd
  111. The Jalgaon Peoples Co-Op Bank
  112. The Jammu and Kashmir Bank
  113. The Karad Urban Co-op Bank Ltd
  114. The Kalupur Commercial Cooperative Bank
  115. The Karnataka State Apex Cooperative Bank Ltd
  116. The Kalyan Janata Sahakari Bank Ltd
  117. The Kangra Central Cooperative Bank Ltd
  118. The Lakshmi Vilas Bank
  119. The Mehsana Urban Cooperative Bank Ltd
  120. The Municipal Co Operative Bank Ltd, Mumbai
  121. The Nasik Merchants Co-Op Bank Ltd
  122. The Nainital Bank Ltd
  123. The Rajasthan State Cooperative Bank Ltd
  124. The Ratnakar Bank Ltd
  125. The Royal Bank of Scotland N.V.
  126. The Saraswat Cooperative Bank Ltd
  127. The Seva Vikas Co-Operative Bank Ltd (SVB)
  128. The Shamrao Vithal Cooperative Bank Ltd
  129. The Surat District Co Operative Bank Ltd
  130. The Surat Peoples Co-Op Bank Ltd
  131. The Sutex Cooperative Bank
  132. The Tamilnadu State Apex Cooperative Bank
  133. The Thane Janata Sahakari Bank Ltd
  134. The Thane District Central Co-Op Bank Ltd
  135. The Varachha Co-Op. Bank Ltd
  136. The Vishweshwar Sahakari Bank Ltd., Pune
  137. The West Bengal State Cooperative Bank Ltd
  138. Tumkur Grain Merchants Cooperative Bank Ltd
  139. UBS AG
  140. UCO Bank
  141. Union Bank of India
  142. United Bank of India
  143. Vasai Vikas Sahakari Bank Ltd
  144. Vijaya Bank
  145. Westpac Banking Corporation
  146. Woori Bank
  147. Yes Bank Ltd

 

What is the Fund Limit For NEFT Transaction?

As such, there is no maximum or minimum limit on the amount to be transferred. However, maximum amount that can be transferred for cash-based remittances and remittances made to Nepal is Rs. 50,000/-

 

 What are the Timings to avail NEFT facility?

Day Start Time End Time
Monday – Friday 9:00 A.M. 4:30 P.M.
Saturday 9:00 A.M. 1:30 P.M. 

NEFT transactions are settled in batches based on the following timings:

• Settlements from Monday – Friday at hourly intervals from 9:00 hrs to 19:00 hrs

• Settlements on Saturdays at hourly intervals from 9:00 hrs to 1:00 hrs.

Indian Standard Time (IST)

 

How much Service Charge is levied to avail NEFT facility?

For Receiving the funds i.e. the beneficiary account holder is not levied any service charge and it is free of cost

However, for sending the funds using NEFT the banks can levy the service charges which are explained below:

Transaction Limit Service Charges (maximum) (in Rs.)
Up to Rs. 10,000/- 2.50
10,000 to 1,00,000 5
1,00,000 to 2,00,000 15
2,00,000 to 10,00,0000 25

Service Tax Extra

 

As a Remitter What information do you need to provide to make a successful NEFT transaction? 

The Remitter has to provide the following details:

• Amount to be remitted

• Beneficiary Account no. to be credited

• Name of the beneficiary bank

• Name of the beneficiary customer (to whom funds are to be transferred)

• Sender to receiver information, if any

• IFSC code of the receiving branch. (All IFSC codes)

• Mobile number of the remitter.

 

If you are looking for more indepth analysis of NEFT, other Banking aspects and other related aspects, the one I found useful is Redcliffe banking training courses with quite a good testimonials about the same.

 

Have a knowledgeable day.

Dilip Kumar

+Dilip Kumar (Author and Editor of The Tax Info) is a Chartered Accountant from Hyderabad, Loves Blogging on Tax related matter.

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