National Electronic Fund Transfer (NEFT) is India's electronic fund transfer system for transferring funds from one bank account to another in a hassle-free and safe manner. This facility is a wide remittance service, which allows you to make various transactions electronically amongst member financial institutions. When the cardholder initiates a transaction or a payment, it will be processed in batch-wise under the NEFT internet banking payment system. Like IMPS, the Reserve Bank of India (RBI) administers NEFT payment system.
In short, NEFT facilitates an individual, business or corporate firm to electronically transfer funds from one bank account to another in the country. There is no minimum or maximum amount applicable on NEFT transfers, and customers can also deposit through cash at the NEFT enabled branches. However, such cash transactions are restricted to Rs. 50,000 per transaction. One can use NEFT for regular funds transfers from 8 AM - 6:30 PM on RBI Working Days. It's suitable for small transactions involving small money transfers.
The procedure for NEFT is as described below:
Step 1: Log in to your net banking account. If you do not have it, register for it on your bank's website.
Step 2: Add the payee, as in the beneficiary. To do this you'll have to enter the following beneficiary details in the ‘Add New Payee’ section:
Step 3: When payee is added, pick NEFT as the mode of Fund Transfer.
Step 4: Pick the account you desire to transfer money from, along with the payee, and enter the amount you wish to transfer. Adding remarks is optional.
Step 5: Click on Submit.