National Electronic Funds Transfer (NEFT) is a payment system regulated by the Reserve Bank of India (RBI) that assists one-to-one funds transfer. One can transfer funds electronically in a quite simple in easy manner from one account to the other. An account holder can transfer funds from one account to the other in SBI or outside SBI.
The transactions are settled in batches as opposed to the continuous, individual settlement in RTGS. Presently, NEFT operates in half-hourly batches. There will be 48 half-hour batches every day. The settlement of the first batch will commence after 00:30 hours and the last batch will end at 00:00 hours. The system will be available on all days of the year, on a 24 x 7 basis, including holidays. It operates on a Deferred Net Settlement basis.
Reasons to Transfer Money via NEFT
Mentioned below are the reasons to transfer money via NEFT:
- There is no minimum or maximum NEFT amount transfer limit. Users can transfer as low as INR 1 through NEFT.
- There is no need for cheques, Demand drafts or visiting the bank while transferring funds via NEFT.
- RBI has laid such guidelines that allow the sender and receiver to stay updated about the fund transfer through notifications via SMS and/or email
- Funds through NEFT can be transferred between 1 hour and 24 hours.
- Since the RBI governs NEFT transactions, there is no doubt about the safety of these transactions.
When can funds be transferred via NEFT?
Before 2019, RBI used to have fixed timings for NEFT, i.e. between 8:00 a.m. and 6:30 p.m. from Monday to Friday and 8:00 AM to 12:00 PM on Saturdays.
However, since 2020, NEFT service has been available 24*7 and 365 days a year. This takes place much time, every 30 minutes all over the day. Let’s take up examples of some banks to understand it in a better way.
| SBI NEFT Timings (Weekdays) | 08:00 AM to 07:00 PM |
| SBI NEFT Timings (Working Saturdays) | 08:00 AM to 01:00 PM |
How does SBI NEFT Work?
Mentioned below are the steps to make NEFT online:
- SBI to Other Banks
Step 1: Log into the SBI internet banking account with the help of a username and password.
Step 2: Click on the tab “Payments & Transfers”
Step 3: Choose the type of funds transfer i.e. “Within SBI” or “Outside SBI”.
Step 4: For funds transfer outside SBI, Click on “Funds Transfer” and then on “NEFT”.
Step 5: Click on “Add Beneficiary”.
Step 6: Provide the beneficiary’s information like name, IFSC Code, bank Account Number, etc.
Step 7: Click on “Confirm” or “Add”.
Step 8: Provide the OTP received on the registered mobile number to authenticate.
Step 9: The beneficiary would then be added within the next 24 hours.
Step 10: From the list of beneficiaries, choose the beneficiary to whom the funds are to be transferred.
Step 11: Select the scheduled time option to select the time at which funds are to be transferred. The three options available are – Pay Now, Schedule Later, and Standing Instruction.
Step 12: Accept the Terms and Conditions.
Step 13: Enter the transaction ID and password.
Step 14: Enter the amount and click on confirm.
- SBI to SBI
Step 1: Log into the SBI internet banking account with the help of a username and password.
Step 2: Click on the tab “Payments & Transfers”
Step 3: Choose the type of funds transfer i.e. “Within SBI” or “Outside SBI”.
Step 4: For funds transfer within SBI, Click on “Funds Transfer” and then on “NEFT”.
Step 5: Click on “Add Beneficiary” if not done earlier.
Step 6: Provide the beneficiary’s information like name, IFSC Code, bank Account Number, etc.
Step 7: Click on “Confirm” or “Add”.
Step 8: Provide the OTP received on the registered mobile number to authenticate.
Step 9: The beneficiary would then be added within the next 24 hours.
Step 10: From the list of beneficiaries, choose the beneficiary to whom the funds are to be transferred.
Step 11: Enter the amount and click on confirm.
Mentioned below are the steps to make NEFT by visiting the bank:
Step 1: Visit the nearest NEFT-enabled bank.
Step 2: Complete the SBI NEFT Form Fill part.
Step 3: Enter the correct details as asked for.
Step 4: Make a cheque with the NEFT transaction amount and attach it along with the form.
Step 5: After verification, submit the form to the concerned bank representative.
Step 6: Once the request is completed, the amount will then be deducted from the bank account and will be transferred to the beneficiary’s bank account.
Benefits of Making NEFT
Mentioned below are the benefits of making a NEFT:
- SBI provides a safe and efficient experience of making a NEFT to its customers which makes the transfer of funds from one account to another quite simple and easy.
- As the processing fees are quite low, it is considered to be the most cost-effective way of funds transfer.
- As NEFT payments are regulated by RBI, it becomes one of the most secure and reliable sources.
Limitations of Making NEFT
Mentioned below are the limitations of making a NEFT:
- The payments are settled in batches, which takes up to 30 minutes to complete a transaction as against UPI, RTGS, or IMPS, where funds get transferred instantly.
- A payee has to wait for 6 hours to 24 hours to add a beneficiary before making NEFT to a new account.
- There is a fee charged in the case of NEFT transactions as against UPI.
Limit for NEFT
Mentioned below is the limit for funds transfer via SBI NEFT under Retail Banking:
| Minimum / Maximum amount for NEFT transactions under Retail Internet Banking | ||
| Type | Minimum | Maximum |
| NEFT | No Minimum | INR 10 Lakhs |
Mentioned below is the limit for funds transfer via SBI NEFT under Corporate Internet Banking:
| Minimum / Maximum amount for NEFT transactions under Corporate Internet Banking | |||
| Type | Minimum | Maximum (per transaction) | Maximum (per day) |
| NEFT | No Minimum | Saral – INR 10 Lakhs Vyapaar – INR 50 Lakhs Vistaar – INR 2000 Crores | Saral – INR 10 Lakhs Vyapaar – No Limit Vistaar – No Limi |
NEFT Charges
Mentioned below are the SBI NEFT Charges:
| Transaction Amount | NEFT Charges for Branch | NEFT Charges for Net Banking |
| Up to INR 10,000 | INR 2.00+ GST | NIL |
| Up to INR 10,001 to INR 1 lakh | INR 4.00+ GST | NIL |
| Above INR 1 lakh up to INR 2 lakh | INR 12.00+ GST | NIL |
| Above INR 2 lakh | INR 20.00+ GST | NIL |
