What NEFT Means How NEFT Transfer Works?

What NEFT Means How NEFT Transfer Works? In India, the rule of Payment System falls under the Payment and Settlement Act 2007. This Payment and Settlement Act is also abbreviated as PSS Act. In December 2007, the Parliament of India approves this Act. Moreover, It is the Responsibility of RBI to Promote the Safety and advancement of Transactions in the field of Payment System in India. This is why they develop some secure transaction systems in our country when we need one. Currently, there are three popular transaction systems in our country which is greatly used by the Customers. These Transaction Systems are NEFT, RTGS, IMPS.

So, In this article, we are going to explain you in detail about What NEFT Means How NEFT Transfer Works? First, we will tell you the basic definition of this transaction system then we further elaborate, how it works? We also take care from our side that we explain all the things as simple as possible. Okay Without any further delay let’s start.

What NEFT Means How NEFT Transfer Works?

NEFT stands for National Electronic Fund Transfer. As the name indicates, it uses to transfer the funds electronically. This system is started back in November 2005. By this system, a person can send money from his/her Bank account to some other person Bank account.

Note: This System falls under the category of Inter Bank Transfer. Inter Bank Transfer means that you can transfer the funds from your bank account (say SBI) to another bank account which is present on some different bank (Say HDFC).

How NEFT Works?

If a person sends the money by using NEFT, the money doesn’t go into the receiver’s account immediately. Actually, In this system, time slots are present in which transaction takes place. In Banks, These time slots are known as Batches. Currently, there are 23 batches available in all the banks each of whose sizes are the half hour. These Batches starts at 8:00 am and ends at 7:00 pm.

Note: You can’t make NEFT Transactions on Sunday, Holiday as well on 2nd & 4th Saturday of each month.

The maximum Amount one can transfer using NEFT

General Consumer or Customer can transfer any amount using NEFT but the maximum amount must not exceed Rs 10 Lakh. On the other hand, Corporation can transact a maximum amount of up to Rs 50 Lakh for Vyapaar and Rs 500 Crore for Vistaar.

Note: The Bank has to credit the Account of Person, who receives the amount using NEFT, under 2 hours.

Note: If the sender transfers the amount in between the batches from 6:30 pm to 7:00 pm then the receiver may receive the amount on the same day. He/She must receive the amount on the next day.

SBI Charges for Transactions using NEFT

Here, We show you the Transaction charges which SBI Takes for the transaction using NEFT. However, NEFT Transaction charges is different for different banks. We only list the transaction charge for SBI users because it is the most popular bank in our Country. If you are a consumer from a Bank Different From SBI, please consult your bank for the Transaction fee. You can also post your query in the comment section below so that we can help you.

Note: The Transaction Fee always deducts from the Depositor Account.

Read also: What are the earning source of Government other than Tax?