What is NEFT ? How NEFT Bank Transfer Works?

Hello Friends, Today I would like to explain you what is NEFT ? and How NEFT Bank Transfer works? So, without wasting any time let's get started.

what is NEFT ? How NEFT works ?

What is NEFT full form ?

NEFT Full form/means National Electronic Funds TransferNEFT means to transfer money from one account to another using Internet. NEFT was started in 2005 by almost every bank. 

Reserve Bank Of India (RBI) have given the two options to banks for transferring money from one  bank account to another bank account. 

Two Options Are:



  • To get started with NEFT you need to have "Net Banking" enabled which is necessary to transfer money from one bank account to another bank account.
    NEFT is very easy to use and it has a time in which you must do for faster. Nowadays, BHIM UPI is established which is fastest way to transfer money. You just have to simply add you bank account in BHIM UPI app.
What is NEFT ? How NEFT Bank Transfer Works?

How NEFT Bank Transfer Works?

To know how NEFT bank transfer work keep following the steps. Remember always have security and be safe from hacker's site.


To get started with NEFT or RTGS you need to activate it through Internet Banking of third party to pay someone safely. 


Beneficiary refers to the person to whom you want to send money. You must add details (i.e. Bank Account Number, Name Of Beneficiary, Bank Account Name E.t.c. ) of beneficiary before sending money from NEFT.  

NEFT Processing

Well, NEFT Processing time is 3-24 hours which means the beneficiary you added is been verified in this time. And after verifying the account its been active to send or receive payments.

Transfer Money

Now, If you have added beneficiary and its verified and active then you can proceed to transfer money from your bank account to other bank account. 

Now, Go to Transfer option and select "NEFT" and then select the beneficiary account you have added and enter the amount and confirm it. NEFT transactions are done in batch which may take little time to reflect in other account.

NEFT Charges

NEFT charges depends on different banks.

  • up to ₹10,000 (not exceeding) : ₹2.50 (+ Service Tax)
  • Above ₹10,000 up to ₹1 lakh (not exceeding) : ₹5 (+ Service Tax)
  • Above ₹1 lakh and up to ₹2 lakhs (not exceeding) : ₹15 (+ Service Tax)
  • above ₹2 lakhs : ₹25 (+ Service Tax).

NEFT Transfer Limit

There is no ceiling on the minimum or maximum amount that can be transferred through NEFT. Whereas RTGS has minimum Rs. 2 Lakh transaction. 

If you have any question regarding anything you can comment and ask me anything regarding the topic I will answer as soon as possible.

Also Read: Reasons You Should Stop Using Truecaller On Your Mobile Phone

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