NEFT

Full form: National Electronic Funds Transfer

Banking

NEFT is an electronic fund transfer system for bank-to-bank transfers across India. Available 24x7 since December 2019. No minimum amount. Maximum Rs 10 lakh per transaction at most banks. Free at most banks.

In detail

NEFT settlement: batches processed every half hour (24x7). Not truly real-time like IMPS/UPI -- there is a 30-minute window before settlement. Free at most banks for online transfers. Useful for medium-to-large transfers above UPI limits.nnAll NEFT transfers require beneficiary IFSC code + account number. IFSC (Indian Financial System Code): 11-character code identifying the specific bank branch.

Real-life example

🇮🇳 India example

Arjun pays Rs 3L rent deposit to landlord. UPI limit is Rs 1L. He uses NEFT: adds beneficiary with IFSC + account number, transfers Rs 3L. Money credited within 30 minutes. Zero charge from his bank.

Frequently asked questions

NEFT vs RTGS -- which to use for large amounts? ▼

NEFT: up to Rs 10L, free, 30-minute settlement. RTGS: Rs 2L minimum, for very large amounts (Rs 10L+), real-time gross settlement, free at most banks. For Rs 10L+, RTGS is faster and the preferred choice.