National Electronic Fund Transfer was introduced in 2005 and is an advanced version of Electronic Fund Transfer (ETF). NEFT is an online mode of transferring funds through the banking channel. NEFT works on deferred net settlement (DNS) basis. Here transaction are held in batches and settlement made at a specific time. Currently NEFT services are available in eleven settlements on week days, i: e, 9 am to 7 pm and 5 settlements on Saturdays, i: e, 9 am to 1 pm and the settlement takes place on hourly basis. Any customer intending to transfer fund after a specific settlement time would have to wait for next designated settlement hour to initiate a transaction. Following information will make the process more clear.

1) Fund transfer: Individuals, firms or corporate having bank account with the NEFT enabled branch can avail NEFT services. Even individuals who don’t have the bank account with that branch can deposit cash and transfer funds but, the transfer amount is limited to maximum of Rs. 50,000 per transaction in such cases. Further, these customers have to provide details relating to their, address, telephone number, etc to the bank.

On the other side, individuals, firms or corporate having account with NEFT enabled bank branch can receive funds through NEFT services. NEFT facility is also available for making cross-border transaction from India to Nepal but is limited to Rs. 50,000 per transaction. Further details regarding Indo-Nepal fund transfer is available on, http://rbidocs.rbi.org.in/rdocs/content/pdfs/84489.pdf.

2) Maximum/minimum amount: There’s no minimum limit on amount to be transferred under both retail and corporate internet banking system. However on maximum side it’s limited to Rs. 5lakhs under retail banking system and for corporate internet banking its limited to Rs. 50lakh for Vyapaar and Rs. 500crore for Vistaar.

3) Service charges: Inward transaction is free of cost whereas, outward transaction for up to Rs.1lakh costs not more than Rs.5+ (service tax), above 1lakh-2lakh not more than Rs.15+ (service tax), and above Rs.2lakh not more than Rs 25+ (service tax). These charges have to be borne by the remitter. With effect from 1st July, 2011, the remitting bank has to pay a nominal charge of 25 paise to the clearing house and to the beneficiary bank as service charges, per transaction. These charges cannot be forwarded to the customer by the bank.

4) Payment: Transaction on week days takes place from 9 am-7 pm  and on Saturdays from 9 am- 1 pm. so, the beneficiary can expect his account be credited between 9 am-5 pm on week days and between 9 am- 12 pm on Saturday on the same day. However, for transaction in the 6 and 7 pm batches on week days and at 1 pm on Saturday can be settled either on same day or on the next working day.

5) Delay or non- credit of amount: In such a scenario the NEFT customer can contact Customer Facilitation Centre of their respective banks. If the issue still remains unsolved one can contact Customer Facilitation Centre of RBI. One can directly send a mail or can communicate by addressing to the General Manager, Reserve Bank of India, National Clearing Centre, First Floor, Free Press House, Nariman Point, Mumbai-400021.

6) Unsuccessful transaction: Many a times due to any reason the transaction remains incomplete. In such a scenario the benefitting bank has to revert back the amount to the remitting bank within 2 hours of the completion of the batch in which the transaction was held.

NEFT services are available across 32407 bank branches in India. Further details can be availed through NEFT website,    http://www.rbi.org.in/scripts/neft.aspx 

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