An integral component of our daily life has been banking. Many of our responsibilities have gotten easier to do since it went online. You don't need to visit the bank and wait in huge lines before making a money transfer request. You no longer need to fill out challans, withdrawal paperwork, or checks. NEFT is a method of sending money online that is currently in use. Read more about NEFT's meaning and specifics in this case.
NEFT Meaning and Full Form
If you want to know NEFT meaning, then it is National Electronic Funds Transfer and is known as NEFT when abbreviated. It's a form of money transfer that makes it possible to make individual payments within India. You can transfer money between accounts through the NEFT service, owned and run by the Reserve Bank of India. You can start transfers between your own two bank accounts or from your account to other people's accounts at various banks. However, you can only do this transaction if your bank supports NEFT.
Advantages of NEFT
Here are some reasons to choose NEFT (National Electronic Funds Transfer) over the other online money transfer options:
- The transmission of funds is simple, practical, and practical thanks to NEFT.
- Immediately after the transaction is complete, both the sender and the recipient of the funds are alerted.
- Since every NEFT transaction occurs online, a third party is never involved.
- NEFT is cost-effective since it eliminates the need for demand draughts or checks when transferring money.
- You can use NEFT to pay your loan instalments, credit card dues, EMIs, and other debts in addition to transferring money.
- Because the RBI is involved, NEFT transactions are secure.
- Any account holder, including individuals, businesses, and corporations, can conduct NEFT transactions. The only prerequisite is that both parties' banks must support NEFT.
How to do NEFT?
To send money using NEFT, follow the steps listed below.
- Firstly, you’ll need a savings account. You can easily open a savings account like a zero balance account within minutes with Kotak 811’s video KYC feature.
- Once created, use a laptop or mobile app to access your savings account.
- Choose "NEFT" under the "Fund Transfer" tab.
- By selecting the "Add Beneficiary" tab, you can choose an existing beneficiary or add a new one. Enter their information, including their mobile number, bank name, branch, and IFSC code. After another 30 minutes have passed after adding a new beneficiary, you can start the transaction.
The following extra charges are associated with NEFT transactions as a money transfer fee:
Less than or equal to Rs. 10,000.
Rs 2.5 +GST
10,000 - 1 Lakh
Rs 5 + GST
1 Lakh – 2 Lakh
Rs 15 + GST
More than 2 Lakh
Rs 25 + GST
NEFT Timings and Limits
Until December 2019, NEFT transactions could only be carried out on weekdays from 8:00 AM to 6:30 PM and on weekends from 8:00 AM to 12:30 PM. On Sundays, NEFT transactions cannot be made. However, NEFT transactions will be available 24/7 from any location beginning in January 2020.
You can utilize NEFT at any time now that we've covered what it is, how it functions, its benefits, and how to start an NEFT transaction. It is a practical, simple, and rapid form of online fund transfer that does not require going to a bank. However, we must know that these details are subject to changes in guidelines made by the Reserve bank of India.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.