NEFT Full Form, Meaning, Timings, Charges and Limit
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NEFT stands for National Electronic Funds Transfer. It is RBI's system for sending money between bank accounts in half-hourly batches, 24×7. There is no RBI limit on the amount. The receiver is credited within 2 hours of the batch, and online NEFT from savings accounts is free.
- Full form
- National Electronic Funds Transfer
- Run by
- Reserve Bank of India
- Started
- 21 Nov 2005
- Timings
- 24×7 since 16 Dec 2019
- Holidays
- None, works on all days
- Batches
- 48 a day, every 30 minutes
- Credit time
- Within 2 hours of the batch
- Amount
- No RBI limit; banks may set one
How does NEFT work?
Your bank collects your payment and sends it to RBI's NEFT centre. Every 30 minutes, RBI settles all waiting payments together and passes them to the receivers' banks.
How to send money by NEFT
- You can deposit cash at an NEFT-enabled branch of any bank to send money by NEFT, even without an account there.
- You give extra details such as your address and phone number.
- The limit is ₹50,000 per transaction.
- NEFT can send money out of India only to Nepal, under RBI's Indo-Nepal Remittance Facility.
- The receiver gets Nepalese rupees and does not need a bank account.
- Ask an NEFT-enabled branch in India about this service and its separate charges.
Timings, holidays, amount and charges
- Timings: 24 hours a day, 365 days a year, since 16 December 2019. There are 48 batches a day; the first settles after 12:30 am.
- Holidays: none. NEFT works on Sundays and all bank holidays. If NEFT is ever unavailable, RBI informs all banks.
- Amount: no minimum or maximum set by RBI. Your bank may set its own limit.
- Charges: receiving is always free. Online NEFT from savings accounts is free since 1 January 2020. For other NEFT, RBI caps what banks may charge.
Example: SBI's NEFT charges
| Amount | Online (net banking, YONO) | At a branch | RBI maximum |
|---|---|---|---|
| Up to ₹10,000 | Free | ₹2 + GST | ₹2.50 + GST |
| ₹10,001 – ₹1 lakh | Free | ₹4 + GST | ₹5 + GST |
| ₹1 lakh – ₹2 lakh | Free | ₹12 + GST | ₹15 + GST |
| Above ₹2 lakh | Free | ₹20 + GST | ₹25 + GST |
Source: SBI RTGS/NEFT FAQ and RBI NEFT FAQ. SBI waives branch charges for some current and salary accounts. Other banks set their own charges within RBI's limit.
How long does NEFT take to credit money?
- Wait for the batch: your payment goes in the next half-hourly batch, so up to about 30 minutes.
- Credit: the receiver's bank must credit the account within 2 hours of the batch settling.
- Confirmation: you get an SMS or email once the receiver is credited.
- If it can't be credited (for example, a wrong account number): the money must be returned within 2 hours of the batch.
- If the bank is late: it must pay penal interest at the repo rate plus 2% for the delay, without you asking.
How to read an NEFT entry and UTR on your statement
Each NEFT payment gets a UTR (Unique Transaction Reference). On your bank statement it usually appears inside a longer line, like this sample:
NEFT/KKBKH26289000123/ASHA VERMA/KKBK0000958/KOTAK MAHINDRA BANK
| Part | In the sample | Meaning |
|---|---|---|
| Type | NEFT | The payment system used |
| UTR | KKBKH26289000123 | The payment's unique reference |
| Name | ASHA VERMA | The other party: who paid you, or whom you paid |
| IFSC | KKBK0000958 | The other party's bank branch |
| Bank | KOTAK MAHINDRA BANK | The other party's bank |
In our experience, the NEFT UTR is 16 characters and carries the date:
| Characters | In KKBKH26289000123 | Meaning |
|---|---|---|
| 1st–4th | KKBK | Sending bank's code: the first 4 letters of its IFSC (here, Kotak Mahindra Bank) |
| 5th | H | A letter set by the sending bank's system |
| 6th–7th | 26 | Year: 2026 |
| 8th–10th | 289 | Day of the year: day 289 is 16 October |
| 11th–16th | 000123 | Serial number |
This layout comes from real bank statements; RBI does not publish it, and some banks may differ. Quote the full UTR, date and amount when you track a payment with your bank's NEFT customer facilitation centre.
Where to find your UTR: in your bank statement or passbook, in the transaction details in net banking or your bank app, or in the SMS or email alert. If you can't find it, your bank's customer care can look it up (source: Axis Bank).
NEFT vs RTGS vs IMPS
| NEFT | RTGS | IMPS | |
|---|---|---|---|
| Run by | RBI | RBI | NPCI |
| Settlement | Half-hourly batches | Each payment, in real time | Each payment, instantly |
| Amount | Any amount | ₹2 lakh and above | Up to ₹5 lakh |
| Credit time | Within 2 hours of the batch | Within 30 minutes | Usually seconds |
| Best for | Non-urgent payments of any size | Large, urgent payments | Urgent payments up to ₹5 lakh |
Where is NEFT used?
Credit card bills
Paying your card dues to the bank that issued the card.
Loan EMIs
Paying a home or car loan instalment to the lender's account.
Fees and rent
Paying ₹25,000 school fees or monthly rent to a bank account.
NRI accounts
Moving money to or from NRE and NRO accounts, within FEMA rules.
Sending cash
Someone without a bank account sends up to ₹50,000 from a branch.
Money to Nepal
Sending money to family in Nepal, received in Nepalese rupees.
If something goes wrong
| Problem | What to do |
|---|---|
| Not credited within 2 hours of the batch | Contact your bank's NEFT customer facilitation centre with the UTR. If not resolved within 30 days, complain to the RBI Ombudsman on the RBI complaint portal or call 14448. |
| Sent to the wrong account | Contact your bank at once with the UTR. A credited payment cannot be cancelled by you. |
| Tricked by a fraudster | Call 1930 or report on the National Cybercrime Reporting Portal, and inform your bank. |
Always check the account holder's name your bank shows before you confirm. Never share your OTP or banking password with anyone.
History of NEFT
RBI launched NEFT to let anyone send money electronically to any bank branch in the country.
NEFT goes live with 8 banks and one settlement a day at 12 noon.
RBI stops charging banks processing fees for NEFT.
NEFT becomes available 24×7, all days, with 48 half-hourly batches.
Online NEFT from savings accounts becomes free.
Banks must show the receiver's account name, free of charge, before you send an NEFT or RTGS payment.
FAQs
Is there a limit on NEFT?
RBI sets no minimum or maximum. Your bank may set its own limit, and cash-based NEFT is limited to ₹50,000 per transaction.
Does NEFT work on Sundays and bank holidays?
Yes. NEFT works 24×7 on all days of the year, including holidays.
How long does NEFT take?
Your payment goes in the next half-hourly batch, and the receiver's bank must credit it within 2 hours of that batch.
Is online NEFT free?
Yes, for savings account holders since 1 January 2020. Receiving NEFT is always free.
Can I send money abroad with NEFT?
Only to Nepal, under the Indo-Nepal Remittance Facility.
Official sources
- RBI – NEFT FAQs (accessed 30 Oct 2026)
- RBI – NEFT go-live circular (16 Nov 2005) (accessed 30 Oct 2026)
- RBI – NEFT available 24x7 from 16 Dec 2019 (circular) (accessed 30 Oct 2026)
- RBI – Beneficiary account name look-up for RTGS and NEFT (30 Dec 2024) (accessed 30 Oct 2026)
- SBI – RTGS/NEFT FAQs and charges (accessed 30 Oct 2026)
- RBI – Banks' NEFT/RTGS customer facilitation centres (accessed 30 Oct 2026)
- Axis Bank – What is a UTR number (accessed 30 Oct 2026)
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