National Electronic Funds Transfer (NEFT)

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National Electronic Funds Transfer (NEFT)

What is NEFT System?
National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch.

Do all branches of State Bank of Hyderabad accept NEFT?
All branches in State Bank of Hyderabad accept NEFT transactions.

What is the funds availability schedule for the beneficiary?
The beneficiary gets the credit on the same Day or the next Day depending on the time of settlement.

How does the NEFT system operates?
Step-1: The remitter fills in the NEFT Application form giving the particulars of the beneficiary (bank-branch, beneficiary’s name, account type and account number) and authorises the branch to remit the specified amount to the beneficiary by raising a debit to the remitter’s account. (This can also be done by using Internet banking services offered by some of the banks.). Our branches accept cash from walk-in customers. However, the customers have to leave their full contact details so that the branch could revert back to them, in case the transactions could not put through, for any reason.

Step-2: The remitting branch prepares a Structured Financial message (SFMS message) and sends it to its Service Centre for NEFT.

Step-3: The Service Centre forwards the same to the RBI NEFT centre (National Clearing Cell, Mumbai) to be included for the next available settlement. Presently, NEFT is settled in six batches at 0930, 1030, 1200, 1300, 1500 and 1600 hours on weekdays and 0930, 1030 and 1200 hours on Saturdays.

Step-4: The RBI at the NEFT centre sorts the transactions bank-wise and prepares accounting entries of net debit or credit for passing on to the banks participating in the system. Thereafter, bank-wise remittance messages are transmitted to banks.

Step-5: The receiving banks process the remittance messages received from RBI and afford credit to the beneficiaries’ accounts.

Can I Send NEFT message to different bank branches at one instance?
Yes, bulk NEFT facility is enabled in all branches of State Bank of Hyderabad and also through Internet banking facility for individual and corporate customers.

How is it different from RTGS?
NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and works on deferred Net settlement, unlike RTGS that works on gross settlement.

Is there any limit on the amount of individual transaction?
There is no limit on amount for individual transactions.

What about Processing Charges/Service Charges for NEFT Transactions?

OUTWARD MESSAGES: (As per extant guidelines transactions above `1.00 lac has to be remitted through RTGS only.)

AMOUNT RATE MINIMUM MAXIMUM
Upto ` 1.00 lac `1.50 per thousand `25.00 `150.00
INWARD MESSAGES `100/- per message.    

How will I know which are the branches participating in the NEFT?
RBI publishes the list of bank branches participating in the NEFT on its website i.e. www.rbi.org.in . All branches of State Bank of Hyderabad are NEFT enabled.

What is IFS Code (IFSC)?
Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11-digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch.

How will I know, what is the IFS Code of my bank-branch?
IFSC Code of the branch is printed on cheque leaves issued to their custome. You may also contact your bank-branch and get the IFS Code of that branch.

Whom should I can contact, in case of non-credit or delay in credit to the beneficiary account?

Contact your bank-branch in case of any problem related to NEFT.

Is it necessary to have a bank account to originate the NEFT transaction?

Yes, NEFT is an account-to-account funds transfer system.

Is it necessary that the beneficiary should have an account at the destination bank-branch?

Yes, NEFT is an account-to-account funds transfer system.

Can I receive foreign remittances through NEFT?

This system can be used only for remitting Indian Rupee among the participating banks within the country.

Can I originate a transaction to receive funds from another account?

No

Can I give credit to my Loan and NRE accounts through NEFT?

Yes, credits to all accounts are permitted including loans, provided loan closure is not attempted and only the installments are credited. NRE credits are also allowed, if NRE tag is used while remitting the message

Would the customer receives an acknowledgement of money credited to the beneficiary?

No; however, electronic acknowledgement is generated for the remitting bank for receipt of funds by the receiving bank.

Would the remitting customer get back the money if it is not credited to the beneficiary’s account?

Yes, the remitting customer will get back the money if it is not credited to the beneficiary account.

Till what time NEFT service window is available?

There are six settlements at 0930, 1030, 1200, 1300, 1500 and 1600 hours on weekdays and 0930, 1030 and 1200 hours on Saturdays.

What is the essential information that the remitting customer would have to furnish for the remittance to be effected?
The essential information that the remitting customer has to furnish is:
Beneficiary details such as beneficiary name and account number, Name and IFSC of the beneficiary bank branch.

Is there any way a remitting customer can track the remittance transaction?

The remitting customer can track the remitting transaction through the remitting branch only, as the remitting branch is informed about the status of the remitted transactions.

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