National Electronic Funds Transfer or NEFT is a way of funds transfer offered by RBI or Reserve Bank of India to allow transfer of funds between a remitter and a beneficiary. A remitter is the person who remits a sum from his account in order to send it electronically to the other person who serves to be the beneficiary as he gets that amount. You can make third party payments using internet banking with this procedure and the money transaction, thus does not require anyone to move out of the house in order to send or receive money and all you require is just a working internet connection. If you wish to avail the benefits of this procedure, you can follow these simple steps:-
How to do NEFT Transfer from your Account
1. Authentication of Details:-
The details of a beneficiary and remitter need to be confirmed first in order to make an NEFT transfer. This takes a time of around 12 to 24 hours. NEFT operates in hourly batches and there are twelve settlements from 8am to 7pm. The beneficiary is expected to receive the transfer of funds during the first nine hours of each of these weekdays.
2. Activation of NEFT service:-
In order to avail the facility for NEFT transfer, you have to activate it first. The activation of NEFT service includes internet banking to be activated with your account. If you have the facility of Internet Banking availed with your account, you can easily make NEFT fund transfers.
3. Funds Transferred Between Both the Accounts:-
The funds can be transferred between both the accounts i.e. Remitter and Beneficiary after the details get authenticated. The details of both the bank accounts need to be specified in order to make transfer of funds. This includes beneficiary’s name, his account number, name of his bank, name of the branch of the bank of which he is a member, the IFSC code of the beneficiary bank branch etc.
4. Making the NEFT transfer:-
The type of transfer option will be selected first of all. In this option you will specify if you need to opt for an NEFT account or you wish to opt for an RTGS account. You will receive a security transaction password on your mobile which will be entered before submitting the details. When you submit the details, the transfer instruction is processed. The transfer, thus takes place and the beneficiary receives the amount.
5. Limit of Money to be transferred:-
There is no limit of transaction of money if you make the transfer through NEFT transfer, but if you choose the RTGS scheme, you will have to make a transfer of minimum two lakh rupees for making the transfer of funds. The process can also be conducted with the help of a remittance form, but the procedure is highly offline as you have to reach the bank branch in order to get it done.