NEFT Transfer: What Are the Fees and Charges?

For over a year and a half now, National Electronic Funds Transfers (or NEFTs) have been permissible to route on a 24/7 basis i.e., users have the liberty to transfer funds from their account to a beneficiary’s account at any point of time during the year. This change was imposed by the Reserve Bank of India (or RBI) in December 2019 and has been active since. It implies that NEFTs are also permissible on weekends and holidays.

What is an NEFT Transfer?

 For the uninitiated, NEFTs allow holders of bank accounts to make fund transfers with a higher amount of efficiency. 

 Online and offline transfers can be made under NEFT. Those seeking to transfer the same are required to provide specific details that hold true for the beneficiary. In addition to these details, they are also required to give the payee an IFSC code which is 11 digits long and a unique figure.

 It is important to understand that NEFTs are processed and cleared in a sequential manner made up of batches. This implies that each time a request for an NEFT is made, it is added to a queue. 

Each of these NEFTs is then cleared once it reaches the front of this queue i.e., when it is to be settled in a batch of others requested at a similar point in time.

While funds can be transferred via a number of platforms including IMPS, RTGS, and UPI, NEFTs are most popular. This is owed to a number of reasons established below.

o   NEFTs have a low processing charge.

o   The RBI has not imposed any limit on the number of funds that can be transferred.

o   There are limited restrictions applicable to NEFT transfers in terms of the funds transferred.

NEFTs are a viable method of transferring funds as they allow for a wide range of payments to be made including those pertaining to credit card bills which are to be paid to banks that issue the same along with the payment of loans and EMIs.

NEFTs can be understood to be a nationwide payment platform that allows for funds to be transferred from one bank account to another one. Account-holders here include individuals, firms, and corporates that take advantage of the NEFT benefits.

Understanding the Fees and Charges Applicable to NEFT Transfers

As per RBI’s mandate in 2019, as of January 1, 2020, NEFT transactions conducted via savings accounts have not had any fees associated with or charged to them.  

This was in a bid by the central bank to get savings bank account holders to transfer their funds with the aid of electronic platforms with NEFT being the idealized platform. 

NEFT charges are applicable based on the funds transferred and in accordance with the bank of the account holder responsible for transferring funds. 

Ordinarily, transactions are viewed to fall in the following ranges – 

o   Transactions Falling under INR 10,000

o   Transactions between INR 10,000 and INR 1 Lakh

o   Transactions between INR 1 Lakh and INR 2 Lakhs

o   Transactions between INR 2 Lakhs and INR 5 Lakhs

o   Transactions between INR 5 Lakhs and INR 10 Lakhs 


NEFT transfers are an easy, fast, and efficient means of transferring funds. Contact your bank for details pertaining to the same!