Frequently Asked Questions - NEFT

Q.1. What is NEFT?

Ans: National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one
funds transfer. Under this cheme! indi"iduals! firms and corporates can electronically transfer funds from
any #an$ #ranch to any indi"idual! firm or corporate ha"ing an account with any other #an$ #ranch in the
country participating in the cheme.
Q.2. Are all bank branches in the country part o the NEFT unds transer net!ork?
Ans: For #eing part of the NEFT funds transfer networ$! a #an$ #ranch has to #e NEFT- ena#led. The list
of #an$-wise #ranches which are participating in NEFT(%ncluding U&' (an$) is pro"ided in the we#site of
)eser"e (an$ of %ndia at http:**www.r#i.org.in*scripts*neft.asp+
Q.". Who can transer unds usin# NEFT?
Ans: %ndi"iduals! firms or corporates maintaining accounts with a #an$ #ranch can transfer funds using
NEFT. E"en such indi"iduals who do not ha"e a #an$ account (wal$-in customers) can also deposit cash
at the NEFT-ena#led #ranches with instructions to transfer funds using NEFT. ,owe"er! such cash
remittances will #e restricted to a ma+imum of )s.-.!...*- per transaction. uch customers ha"e to
furnish full details including complete address! telephone num#er! etc.NEFT! thus! facilitates originators or
remitters to initiate funds transfer transactions e"en without ha"ing a #an$ account.
Q.$. Who can recei%e unds throu#h the NEFT syste&?
Ans: %ndi"iduals! firms or corporates maintaining accounts with a #an$ #ranch can recei"e funds through
the NEFT system. %t is! therefore! necessary for the #eneficiary to ha"e an account with the NEFT
ena#led destination #an$ #ranch in the country.
The NEFT system also facilitates one-waycross-#order transfer of funds from %ndia to Nepal. This is
$nown as the %ndo-Nepal )emittance Facility cheme. A remitter can transfer funds from any of the
NEFT-ena#led #ranches in to Nepal! irrespecti"e of whether the #eneficiary in Nepal maintains an
account with a #an$ #ranch in Nepal or not. The #eneficiary would recei"e funds in Nepalese )upees.
Further details on the %ndo-Nepal )emittance Facility cheme are a"aila#le on the we#site of )eser"e
(an$ of %ndia at http:**r#idocs.r#i.org.in*rdocs*content*pdfs*/00/1.pdf.
Q.'. (s there any li&it on the a&ount that could be transerred usin# NEFT?
Ans: No. There is no limit 2 either minimum or ma+imum 2 on the amount of funds that could #e
transferred using NEFT. ,owe"er! ma+imum amount per transaction is limited to )s.-.!...*- for cash-
#ased remittances and remittances to Nepal.
Q.). Whether the syste& is centre speciic or has any #eo#raphical restriction?
Ans: No. There is no restriction of centres or of any geographical area within the country. The NEFT
system ta$es ad"antage of the core #an$ing system in #an$s. Accordingly! the settlement of funds
#etween originating and recei"ing #an$s ta$es places centrally at 3um#ai! whereas the #ranches
participating in NEFT can #e located anywhere across the length and #readth of the country.
Q.*. What are the operatin# hours o NEFT?
Ans : 4resently! NEFT operates in hourly #atches - there are twel"e settlements from / am to 5 pm on
wee$ days (3onday through Friday) and si+ settlements from / am to 6 pm on aturdays.
Q.+. ,o! does the NEFT syste& operate?
tep-6 : An indi"idual * firm * corporate intending to originate transfer of funds through NEFT has to fill an
application form pro"iding details of the #eneficiary (li$e name of the #eneficiary! name of the #an$
#ranch where the #eneficiary has an account! %F& of the #eneficiary #an$ #ranch! account type and
account num#er) and the amount to #e remitted. The application form will #e a"aila#le at the originating
#an$ #ranch. The remitter authori7es his*her #an$ #ranch to de#it his account and remit the specified
amount to the #eneficiary. &ustomers en8oying net #an$ing facility offered #y their #an$ers can also
initiate the funds transfer re9uest online. ome #an$s offer the NEFT facility e"en through the AT3s.
:al$-in customers will! howe"er! ha"e to gi"e their contact details (complete address and telephone
num#er! etc.) to the #ranch. This will help the #ranch to refund the money to the customer in case credit
could not #e afforded to the #eneficiary;s #an$ account or the transaction is re8ected * returned for any
reason.
tep-< : The originating #an$ #ranch prepares a message and sends the message to its pooling centre
(also called the NEFT er"ice &entre).
tep-= : The pooling centre forwards the message to the NEFT &learing &entre (operated #y National
&learing &ell! )eser"e (an$ of %ndia! 3um#ai) to #e included for the ne+t a"aila#le #atch.
tep-0 : The &learing &entre sorts the funds transfer transactions destination #an$-wise and prepares
accounting entries to recei"e funds from the originating #an$s (de#it) and gi"e the funds to the destination
#an$s(credit). Thereafter! #an$-wise remittance messages are forwarded to the destination #an$s through
their pooling centre (NEFT er"ice &entre).
tep-- : The destination #an$s recei"e the inward remittance messages from the &learing &entre and
pass on the credit to the #eneficiary customers; accounts.
Q.-. What is (F./?
Ans : %F& or %ndian Financial ystem &ode is an alpha-numeric code that uni9uely identifies a #an$-
#ranch participating in the NEFT system. This is an 66 digit code with the first 0 alpha characters
representing the #an$! and the last > characters representing the #ranch. The -th character is . (7ero).
%F& is used #y the NEFT system to identify the originating * destination #an$s * #ranches and also to
route the messages appropriately to the concerned #an$s * #ranches.
Q.10. ,o! can the (F./ o a bank-branch be ound?
Ans: (an$-wise list of %F&s is a"aila#le with all the #an$-#ranches participating in NEFT.?ist of #an$-
wise #ranches participating in NEFT and their %F&s is a"aila#le on the we#site of )eser"e (an$ of %ndia
athttp:**www.r#i.org.in*cripts*#s@"iewcontent.asp+A%dB<..1 . All the #an$s ha"e also #een ad"ised to
print the %F& of the #ranch on che9ues issued to their customers. For net #an$ing customers many
#an$s ha"e ena#led online search * pop-up of the %F& of the destination #an$ #ranch.
Further! #an$s ha"e also #een ad"ised to ensure that their #ranch staff pro"ide necessary assistance to
customers in filling out the re9uired details! including %F& details! in the NEFT application form! and also
help in ensuring that there is no mismatch #etween the %F& code and #ranch details of #eneficiary
#ranch as pro"ided #y the customer.
Q.11. What are the processin# or ser%ice char#es or NEFT transactions?
Ans: The structure of charges that can #e le"ied on the customer for NEFT is gi"en #elow:
a) %nward transactions at destination #an$ #ranches (for credit to #eneficiary accounts)
1 Free! no charges to #e le"ied from #eneficiaries.
#) 'utward transactions at originating #an$ #ranches 2 (4lease refer to er"ice &harges lin$).
c) &harges applica#le for transferring funds from %ndia to Nepal using the NEFT system (under the %ndo-
Nepal )emittance Facility cheme) is a"aila#le on the we#site of )(%
at http:**r#i.org.in*scripts*FACDiew.asp+A%dB>5
:ith effect from 6st Euly <.66! originating #an$s are re9uired to pay a nominal charge of <- paise each
per transaction to the clearing house as well as destination #an$ as ser"ice charge. ,owe"er! these
charges cannot #e passed on to the customers #y the #an$s.
Q.12. When can the beneiciary e2pect to #et the credit to his bank account?
Ans: The #eneficiary can e+pect to get credit for the first ten #atches on wee$ days (i.e.! transactions from
/ am to - pm) and the first fi"e #atches on aturdays (i.e.! transactions from / am to 6< noon) on the
same day. For transactions settled in the last two #atches on wee$ days (i.e.! transactions settled in the >
and 5 pm #atches) and the last #atch on aturdays (i.e.! transactions handled in the 6 pm #atch)
#eneficiaries can e+pect to get credit either on the same day or on the ne+t wor$ing day morning
(depending on the type of facility en8oyed #y the #eneficiary with his #an$).
Q.1". Who should be contacted in case o non-credit or delay in credit to the beneiciary account?
Ans: %n case of non-credit or delay in credit to the #eneficiary account! the NEFT &ustomer Facilitation
&entre (&F&) of the respecti"e #an$ can #e contacted (the remitter can contact his #an$;s &F&F the
#eneficiary may contact the &F& of his #an$). Getails of NEFT &ustomer Facilitation &entres of #an$s are
a"aila#le on the we#sites of the respecti"e #an$s. The details(including the details of U&' (an$) are also
a"aila#le on the we#site of )eser"e (an$ of %ndia at http:**www.r#i.org.in*cripts*#s@"iewcontent.asp+A
%dB<.5 . .
%f the issue is not resol"ed satisfactorily! the NEFT ,elp Ges$ (or &ustomer Facilitation &entre of )eser"e
(an$ of %ndia) at National &learing &ell! )eser"e (an$ of %ndia! 3um#ai may #e contacted through e-
mail or #y addressing correspondence to the Heneral 3anager! )eser"e (an$ of %ndia! National &learing
&entre! First Floor! Free 4ress ,ouse! Nariman 4oint! 3um#ai 2 0.. .<6.
Q.1$. What !ill happen i credit is not aorded to the account o the beneiciary?
Ans: %f it is not possi#le to afford credit to the account of the #eneficiary for whate"er reason! destination
#an$s are re9uired to return the transaction (to the originating #ranch) within two hours of completion of
the #atch in which the transaction was processed.
For e+ample! if a customer su#mits a fund transfer re9uest at 6<..- p.m. to a NEFT-ena#led #ranch! the
#ranch in turn forwards the message through its pooling centre to the NEFT &learing &entre for
processing in the immediately a"aila#le #atch which (say) is the 6... pm #atch. %f the destination #an$ is
una#le to afford the credit to the #eneficiary for any reason! it has to return the transaction to the
originating #an$! not later than in the =... pm #atch. 'n recei"ing such a returned transaction! the
originating #an$ has to credit the amount #ac$ to account of the originating customer. To conclude! for all
uncredited transactions! customers can reasona#ly e+pect the funds to #e recei"ed #ac$ #y them in
around = to 0 hours time.
Q.1'. /an NEFT be used to transer unds ro& 3 to N4E and N45 accounts?
Ans: Ies. NEFT can #e used to transfer funds from or to N)E and N)' accounts in the country. This!
howe"er! is su#8ect to the adherence of the pro"isions of the Foreign E+change 3anagement Act! <...
(FE3A) and :ire Transfer Huidelines.
Q.1). /an re&ittances be sent abroad usin# NEFT?
Ans: No. ,owe"er! a facility is a"aila#le to send outward remittances to Nepal under the %ndo-Nepal
)emittance Facility cheme.
Q.1*. What are the other transactions that could be initiated usin# NEFT?
Ans: (esides personal funds transfer! the NEFT system can also #e used for a "ariety of transaction
including payment of credit card dues to the card issuing #an$s. %t is necessary to 9uote the %F& of the
#eneficiary card issuing #an$ to initiate the #ill payment transactions using NEFT.
Q.1+. /an a transaction be ori#inated to dra! 6recei%e7 unds ro& another account?
Ans : No. NEFT is a credit-push system i.e.! transactions can #e originated only to transfer * remit funds to
a #eneficiary.
Q.1-. Would the re&itter recei%e an ackno!led#e&ent once the unds are transerred to the
account o the beneiciary?
Ans: Ies. %n case of successful credit to the #eneficiaryJs account! the #an$ which had originated the
transaction is e+pected to send a confirmation to the originating customer (through 3 or e-mail)
ad"ising of the credit as also mentioning the date and time of credit. For the purpose! remitters need to
pro"ide their mo#ile num#er * e-mail-id to the #ranch.
Q.20. (s there a !ay or the re&itter to track a transaction in NEFT?
Ans: Ies! the remitter can trac$ the NEFT transaction through the originating #an$ #ranch or its &F&
using the uni9ue transaction reference num#er pro"ided at the time of initiating the funds transfer. %t is
possi#le for the originating #an$ #ranch to $eep trac$ and #e aware of the status of the NEFT transaction
at all times.
Q.21. What are the pre-requisites or ori#inatin# a NEFT transaction?
Ans : Following are the pre-re9uisites for putting through a funds transfer transaction using NEFT 2
'riginating and destination #an$ #ranches should #e part of the NEFT networ$
(eneficiary details such as #eneficiary name! account num#er and account type! name and %F&
of the #eneficiary #an$ #ranch should #e a"aila#le with the remitter
For net #an$ing customers! some #an$s pro"ide the facility to automatically pop-up the %F&
once name of the destination #an$ and #ranch is highlighted * chosen * indicated * $eyed in.
Q.22. What are the beneits o usin# NEFT?
Ans: NEFT offers many advantages over the other modes of funds transfer:
The remitter need not send the physical che9ue or Gemand Graft to the #eneficiary.
The #eneficiary need not "isit his * her #an$ for depositing the paper instruments.
The #eneficiary need not #e apprehensi"e of loss * theft of physical instruments or the li$elihood
of fraudulent encashment thereof.
&ost effecti"e.
&redit confirmation of the remittances sent #y 3 or email.
)emitter can initiate the remittances from his home * place of wor$ using the internet #an$ing
also.
Near real time transfer of the funds to the #eneficiary account in a secure manner.