NEFT Charges

NEFT Charges

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Find out the latest NEFT charges levied by digibank

Key Takeaways

  • The RBI owns and operates the National Electronic Funds Transfer (NEFT) system in India.
  • NEFT enables electronic fund transfers within 30 minutes.
  • NEFT money transfers are immensely popular thanks to its PAN-Indian presence.
  • You can make online and offline NEFT transfers.
  • There are no NEFT charges for online transfers, whereas offline transfer charges are nominal.

In this digital age of online shopping and same-day deliveries, Indian banks have kept up with the times. Today, banks offer several methods of same-day, inter and intra-bank fund transfers. You can transfer funds into beneficiary accounts via methods like NEFT, IMPS, RTGS, etc. Let us talk about NEFT and NEFT transaction charges.

What is NEFT?

National Electronic Fund Transfer (NEFT) is a payment system operated by the Reserve Bank of India. A PAN-India facility, NEFT allows the speedy transfer of funds between bank accounts across India. Funds are typically credited into beneficiary accounts within 30 minutes. NEFT aims to facilitate efficient, reliable, and secure online and offline fund transfers.

NEFT Transaction Charges

If you are wondering, 'is there any charge for NEFT', you should know that charges apply based on whether you choose the online or offline fund transfer method.

Online

The RBI levies no charges from member banks for NEFT Transactions. Effective January 2020, the RBI has advised banks not to impose any charges for online NEFT Transactions made from a Savings Account. Therefore, NEFT Transactions made via internet banking and mobile banking with digibank by DBS Savings Account are free of charge. Additionally, there is no upper limit on the fund transfer amount for online NEFT transactions.

Offline

You can transfer funds via NEFT by visiting your nearest DBS Branch and filling the NEFT form. The maximum NEFT bank charges levied on NEFT Transactions made at bank branches are as follows:

Maximum Transaction Amount

NEFT Transaction Charges

Up to INR 10,000

Up to INR 2.50 + GST

INR 10,000 up to INR 1 lakh

Up to INR 5.00 + GST

INR 1 lakh up to INR 2 lakh

Up to INR 15.00 + GST

Over INR 2 lakh

Up to INR 25.00 + GST

The above NEFT charges are as per RBI guidelines. Note that you can make an NEFT cash transfer without holding a bank account. Simply visit the NEFT-enabled bank branch and fill an NEFT transfer form. You can transfer a maximum amount of INR 50,000 per transaction through this method.

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Features & Benefits

Besides knowing NEFT bank charges, you should be aware of its unique features. Until 2019, the RBI processed NEFT transactions at specific hours. However, today, you can electronically transfer funds all year round. Presently, NEFT operates in half-hourly batches at intervals throughout the day.

Besides fund transfers, you can use NEFT to pay off your credit card dues, loans EMI, make inward foreign exchange remittances, etc.

At present, there are over 1.5 lakh NEFT-enabled banks in India. The PAN India coverage makes NEFT transfers extremely convenient.

The most apparent benefit of NEFT is the absence of charges for online fund transfers. With digibank by DBS, Savings Account holders can make online NEFT charges free of cost.

Conclusion

NEFT transfer is one of the most cost-effective means to transfer money online. You have to pay nominal NEFT charges for offline transactions, while online charges are non-existent. The PAN India presence makes NEFT transactions extremely convenient.

Download digibank by DBS to effortlessly send money to your loved one with 100% confidence.

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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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