How to pay through neft?

NEFT is not an instantaneous process and fund transfer requests are processed in batches. Let us discuss the steps involved in the process of NEFT:

Step 1: An individual who wants to transfer funds will have to fill out an application form by providing details of the beneficiary such as the name of the beneficiary, the name of the bank’s branch where the beneficiary has an account, IFSC of the branch, account type and number.

Step 2: The originating bank branch collects the data and sends a message to the NEFT service centre.

Step 3: The NEFT service centre then forwards the message to the NEFT clearing centre to be included in the next available batch.

Step 4: The clearing centre now sorts fund transfer transactions destination bank-wise and then prepares to account entries to receive funds from the originating bank and route the funds to the beneficiary’s bank.

Step 5: The destination bank by this point receives the inward remittance messages from the clearing centre and processes the credit to the beneficiary customer’s account.

NEFT transactions are available 24×7 and 365 days on all days of the year. Earlier, NEFT transactions were available from 8:00 AM to 6:30 PM from Monday to Friday only. However, RBI has regularised that NEFT transactions will be available on all days of the year, including holidays.

Also, after usual banking hours, NEFT transactions are expected to be automated transactions initiated using ‘Straight Through Processing (STP)’ modes by the banks.

Below are the steps to know how to transfer funds through NEFT online:

For the offline NEFT process, you have to fill an NEFT form in your bank’s branch. All the necessary details are filled in the form which is later handed over to the banking official. Let us discuss the details further:

There is no transfer limit of fund transfer via NEFT by RBI. However, banks might impose some limits on their risk perception with the approval of their board.

There are a few prerequisites that have to be fulfilled for NEFT fund transfer. Some of them are mentioned below:

NEFT fund transfer may rarely fail due to some technical glitch that may happen at the time of a heavy load of payments. Should the event arise where the transaction fails, the customer can reach out to their respective bank as all the transactions are recorded on the website as well as RBI. Ideally, the deducted amount from the remitter’s account is refunded back but if you do not receive funds in your account within three days of a failed transaction, you can file a complaint by calling the bank customer care team.

For individuals who are on the receiving end of the transfer, there are no charges whatsoever. Moreover, no NEFT charges are applied to transactions initiated online via the internet or mobile banking channels. However, if you are the one who is initiating the fund transfer, you would have to pay certain fees to facilitate the same.

The charges for NEFT vary from bank to bank and you should check with your bank regarding the same. While some banks charge transfers up to Rs. 10,000 at flat Rs. 2.5, others charge Rs. 2.5 along with taxes. Depending on your account type, some banks might have free NEFT transfers within the same bank, adding much more convenience.

Let us know about the advantages offered by NEFT:

Under a number of measures for digital payments that were announced by the RBI, fintech companies have now been allowed to process RTGS and NEFT transactions.

How will this affect our transactions? Read on to find out!

The Reserve Bank of India announced multiple new measures for digital payments which includes enabling fintech companies to process RTGS and NEFT transactions. There also are new norms introduced on interoperability and cash withdrawal facilities for payment wallets.

Through these measures, the RBI plans to level out the playing field for non-bank payment operators and banks. Another motive behind this Is to reduce settlement risks by broadening the ecosystem.

In simple terms, companies like Paytm, Visa, Mastercard, and PhonePe will also be able to process your RTGS and NEFT payments.

Shaktikanta Das, the central bank governor announced the new reforms while speaking at Monetary Policy Committee (MPC). He also spoke about a specific group of fintech companies being allowed to become members of centralized payment systems, such as RTGS and NEFT. these include prepaid instrument issuers (PPIs), card networks, and TReDS operators, among others.

As per Das, “It is now proposed to enable non-bank PSOs like PPI issuers, card networks, white label ATM operators and Trade Receivables Discounting System (TReDS) platforms regulated by RBI, to take direct membership in CPSs.”

As we all know, RTGS and NEFT processes were only conducted by the banks until now.

Multiple experts have confirmed that this move to CPSs membership for digital payments platforms will be beneficial for the growth of infrastructure and also to reduce the risks in settlements.

“Given the exponential growth in digital payments, dominated by the UPI infrastructure, this move will allow better product innovation and integration. It will also reduce systemic risk for digital payments,” said Shilpa Mankar Ahluwalia, partner and head of fintech, Shardul Amarchand Mangaldas

As we all know, RTGS or Real Time Gross Settlement System is used for transactions between businesses that are above the amount of Rs. 2 lakhs, whereas,  NEFT or National Electronic Funds Transfer enables people to transfer their money directly to other banks across the nation.

• Select “Transfer to other bank” from Funds Transfer section in NetBanking.
• Select account, beneficiary and enter the relevant details.
• Review the details, and, if all is correct, confirm to complete the process.