NEFT, which stands for National Electronic Funds Transfer, is a widely used electronic payment system in India. It enables individuals and businesses to transfer funds from one bank account to another seamlessly. NEFT transactions are facilitated by the Reserve Bank of India (RBI) and are conducted in a secure and efficient manner. This system is employed for various purposes, including transferring money to pay bills, make investments, or send funds to family and friends.
The BBPS platform on Bajaj Finserv caters to NEFT, providing users with speed and security.
How does a NEFT transfer work
A NEFT transfer works by electronically moving money between two bank accounts. The sender initiates the transaction through their bank, providing the recipient's bank account details. The sender's bank forwards the request to the RBI's NEFT system, which processes it. The money is then transferred to the recipient's bank account, with the transaction typically taking a few hours to complete.
Benefits of using NEFT service for money transfer
- Convenience: NEFT allows you to transfer money electronically from the comfort of your home or office through online banking, mobile apps, or ATMs, eliminating the need for physical visits to banks.
- Widespread coverage: NEFT is widely accepted and available across most banks in India, making it a highly accessible and inclusive money transfer system.
- Secure transactions: NEFT transactions are conducted on a secure network, reducing the risk of fraud or theft associated with physical cash transactions.
- Accuracy: The electronic nature of NEFT reduces the chances of errors in transactions, as all details are verified electronically.
- Timely transfers: NEFT operates in hourly batches during banking hours, ensuring timely fund transfers. Transactions are typically completed on the same day or within a few hours.
- Large transaction capability: NEFT accommodates both small and large transactions, making it suitable for a wide range of financial needs, from paying bills to making significant investments.
- Tracking and confirmation: You receive confirmation and transaction details, which can be useful for record-keeping and tracking the status of your transfers.
- Cost-effective: Many banks offer NEFT services at nominal or no cost, making it an affordable option for money transfers.
- Flexible timing: NEFT can be initiated during banking hours, but some banks also offer extended NEFT hours, allowing you to transfer money at your convenience.
How to initiate a NEFT Transaction
- Open the Bajaj Finserv app or website.
- Tap on ‘Bajaj Pay’ on homepage
- Under ‘QUICK ACTIONS’, select ‘TO BANK/UPI ID’
- Create your Bajaj Pay UPI ID by selecting the bank linked to registered mobile number
- Complete the registration process
- Tap on ‘TRANSFER TO BANK’ and add the beneficiary account
- Transfer the amount as per your convenience by selecting NEFT as the payment method
Information required to transfer funds via NEFT
- Beneficiary name: The full name of the person or entity receiving the funds.
- Bank name: The name of the beneficiary’s bank.
- Branch name: The specific branch of the beneficiary’s bank.
- IFSC Code: The Indian Financial System Code for the beneficiary’s bank branch.
- Account number: The beneficiary’s bank account number.
- Amount: The exact amount to be transferred.
- Purpose: The reason for the transfer, if required by the bank.
NEFT transfer service fee
Most banks charge nominal fees for NEFT transactions, which vary depending on the transaction amount. However, some banks offer NEFT services for free to promote digital transactions and financial inclusion.
Reasons for NEFT failure
NEFT transactions may fail due to reasons such as incorrect account details, insufficient funds, technical glitches, or exceeding the daily transaction limit. It is crucial to ensure accuracy when entering recipient details to prevent failures.
Essential details for remitting funds through NEFT
To remit funds through NEFT, you typically need the recipient's name, account number, bank branch's IFSC code, and the amount you wish to transfer. Accurate information is crucial to ensure a successful transaction.
NEFT transfer limit
The NEFT transfer limit varies from bank to bank, but generally, it allows for both small and large transactions. Many banks have increased the NEFT limit to accommodate larger fund transfers, making it a versatile option for various financial needs.
