The National Electronic Funds Transfer is the NEFT full form, which is a system introduced in 2005. As long as both parties have a NEFT-enabled bank account, it allows for simple fund transfers between them.
Customers used NEFT to make over 928 million transactions in the 2015 and 2016 fiscal years. These deals totaled USD 830 billion in value. However, after the introduction of new consumer-focused payment alternatives such as IMPS and UPI, less people are using NEFT to complete their transactions. Let’s learn everything there is to know about the NEFT limit.
What is a NEFT transaction and how does it work?
Customers must take the following actions in order to initiate and complete a NEFT transaction:
- Fill out an application form with all of the relevant information on the beneficiary. These details typically comprise the recipient’s name, the bank with which the beneficiary does business, the IFSC code, account number, and account type.
- The amount you want to transfer to the beneficiary must then be entered.
- Depending on the bank with which you do business, you may be required to verify your identity by entering a PIN, an OTP, or any other method the bank specifies.
What are the fees associated with NEFT charges?
There are no NEFT charges on online transactions. The RBI has eliminated transaction costs for all NEFT transactions, regardless of your bank, in order to promote digital transactions.
What else can NEFT be used for?
Another advantage of NEFT that has proven to be beneficial to clients is that you can use it to settle any credit card dues if necessary. To permit payments to card issuing banks, the NEFT system uses a distinct transaction code. In order to make these payments, you’ll need this code as well as the bank’s IFSC code. Your bank branch can provide you with the code.
NEFT payments are available 24 hours a day, 7 days a week.
Consumers will be able to make NEFT payments at any time of day or night starting in December 2019, rather than the current 8 a.m. to 7 p.m. window.
Who is eligible to send money via NEFT?
If you have a bank account, you can utilise NEFT to send money to anyone. Individuals without a bank account can deposit money at any NEFT-enabled ATM in their area. Individual customers are issued a unique NEFT code in such instances.
Similarly, payments initiated using NEFT can be received by any individual, corporation, or organisation. This method of payment is also often used to send money between India and Nepal. For the convenience of the consumer, it even converts the amount transmitted from Indian rupees to Nepalese rupees.
One of the most appealing features of NEFT is that there are no transaction restrictions, allowing clients to transmit money whenever they choose. This can be a lifesaver for consumers who are dealing with a medical or financial emergency and require big sums of money. Another advantage of NEFT transfers is that they are faster than RTGS transfers. Visit Finserv MARKETS to know more!