Have you ever wondered how money is seamlessly transferred from one bank account to another? Enter NEFT, short for National Electronic Funds Transfer, a popular and user-friendly electronic payment system in India. NEFT simplifies transferring funds, making it convenient and accessible for individuals and businesses. With NEFT, you can securely send money to anyone with a bank account nationwide. Whether paying bills, making online purchases, or transferring funds to loved ones, NEFT provides a reliable and efficient way to conduct transactions.

Let’s dive deeper into the world of NEFT and unlock its possibilities.

What is NEFT?

NEFT, or National Electronic Funds Transfer, is an electronic payment system widely used in India. It enables individuals, businesses, and organizations to transfer funds securely from one bank account to another nationwide. NEFT serves as a quick and efficient alternative to traditional paper-based transactions. It is commonly used for various purposes, such as salary transfers, bill payments, online purchases, and fund transfers to family and friends. The NEFT process involves initiating a transfer request through the sender’s bank, which is then processed and settled in batches at specific daily intervals. This ensures timely and hassle-free fund transfers for users.

How NEFT Works: Step-by-Step Process for Transferring Funds?

  • Log in to your Internet banking account using your credentials.
  • Locate and click on the “Fund transfer” option on the main page.
  • From the drop-down menu, select “NEFT” as the transfer mode.
  • If you haven’t already added the beneficiary to your account, click the “Add beneficiary” option.
  • Provide the necessary details of the beneficiary, including their name, bank account number, IFSC code, etc.
  • Confirm the beneficiary details and authenticate the action by entering the OTP sent to your registered mobile number.
  • After authentication, the beneficiary will be added to your account, which typically takes 24 hours.
  • Once the beneficiary is successfully added, select their details from your list of beneficiaries.
  • Enter the desired amount to be transferred and confirm the transaction.
  • Click on “Confirm” to initiate the transfer, and the specified amount will be debited from your account and credited to the recipient’s account.

By following these steps, you can easily transfer funds using NEFT, allowing you to send money to others securely and efficiently conveniently.

Features of NEFT

  • NEFT is a regulated online money transfer method, following RBI guidelines.
  • It facilitates one-to-one payment transfers between banks offering NEFT services.
  • NEFT transactions are not real-time and may take a few days to complete.
  • Since December 2019, NEFT transactions can be performed 24/7, expanding availability.
  • Beneficiaries must be added through the Internet banking portal to transfer funds via NEFT.
  • NEFT transactions have no limits on the amount that can be transferred.
  • A fee applies to NEFT transactions, ranging from Rs. 2.5 to Rs. 25, depending on the transfer amount.
  • NEFT payments are processed and settled in batches of half-hour intervals, following RBI guidelines.

Advantages of NEFT (National Electronic Funds Transfer):

Easy and Convenient: NEFT provides a seamless and hassle-free way to transfer funds online, making it a convenient option for users.

Direct Transactions: With NEFT, a third party is not involved. The funds are transferred directly between the sender and receiver’s bank accounts, ensuring a secure and transparent process.

Safety and Security: NEFT transactions are regulated by the Reserve Bank of India (RBI), ensuring a high level of safety and security for users.

Instant Notifications: The sender and receiver receive instant notifications once the NEFT transaction is completed, providing real-time updates on the transfer.

Cost-effective: NEFT eliminates the need for cheques or demand drafts, resulting in user cost savings. It offers an economical way to transfer funds electronically.

Wide Applicability: NEFT can be used by individuals, firms, and corporate entities to carry out transactions. The only requirement is that both parties’ banks must be NEFT-enabled.

Versatile Usage: In addition to fund transfers, NEFT can be used to pay loan installments, credit card dues, EMIs, and various other financial obligations, offering flexibility and convenience.

By leveraging these advantages, NEFT empowers users to manage their financial transactions and meet payment obligations efficiently.

Understanding NEFT Transaction Charges: Fees Applicable for Money Transfers

Transaction Amount Fee Amount
Less than or equal to Rs. 10,000 Rs. 2.5
Between Rs. 10,000 and Rs. 1 Lakh Rs. 5
Between Rs. 1 Lakh and Rs. 2 Lakh Rs. 15
Equal to or more than Rs. 2 Lakh Rs. 25

Please visit this link for more detailed information regarding the charges applicable to NEFT transactions.


1. How much time does NEFT take?

NEFT transfers typically take a few hours to settle, depending on the bank’s batch processing schedule and the initiation time.

2. What is NEFT transfer?

NEFT transfer is an electronic payment system in India that enables individuals and businesses to transfer funds between bank accounts using the NEFT network.

3. How much time does NEFT take?

The time taken for NEFT transactions to complete may vary, but generally, it takes a few hours to process and settle the funds.

4. How much time NEFT transfer takes in SBI?

The time taken for NEFT transfers in SBI (State Bank of India) may vary based on the initiation time, batch processing schedule, and recipient’s bank processing time.

5. What is the difference between NEFT and RTGS?

The main difference between NEFT and RTGS (Real-Time Gross Settlement) is the settlement time. NEFT operates in batches and settles funds periodically throughout the day, while RTGS facilitates real-time, immediate settlement of funds on an individual transaction basis.


The author writes about fintech, banking, and future of SAAS services. He works as an SEO analyst at Easebuzz, so if you're looking for an account that tracks India's fintech scene, you should check out his Easebuzz blog.