NEFT (National Electronic Funds Transfer) is an RBI-run system for moving money between bank accounts across India. It is one of the most widely used transfer methods because it is free online, has no upper limit, and works 24×7.
How NEFT works (batch settlement)
Unlike UPI or IMPS, NEFT does not settle each payment instantly. It collects transactions and processes them in batches at frequent intervals through the day. Your bank debits your account, the transaction joins the next batch, and the RBI settles it with the beneficiary’s bank — which then credits the account. This is why NEFT usually takes a few minutes rather than seconds. See our transfer timings guide.
Limits and charges
- Minimum: ₹1. Maximum: no RBI limit (your bank may cap per-transaction amounts).
- Charges: free for transfers initiated online via net banking or a mobile app. Branch (offline) transfers may carry a small fee plus GST.
- Availability: 24×7, including weekends and holidays.
What you need
To send money by NEFT you need the beneficiary’s name, account number and IFSC code, and you usually add them as a beneficiary first.
When to use NEFT
NEFT is ideal for large or non-urgent transfers where being free matters more than instant delivery — salaries, vendor payments, EMIs. For instant transfers, IMPS or UPI are better; for very large urgent amounts, RTGS. Compare all four in our main guide.
Frequently asked questions
What is the full form of NEFT?
NEFT stands for National Electronic Funds Transfer, an RBI-operated bank transfer system.
Is NEFT instant?
Not quite. NEFT settles in batches, so transfers usually take a few minutes to a couple of hours rather than being instant like IMPS or UPI.
Is there a limit on NEFT?
There is no RBI-imposed maximum and the minimum is Rs 1, though individual banks may set their own per-transaction caps.
Is NEFT free?
Yes, for transfers initiated online. Branch-based NEFT may carry a small fee.
Limits, charges and procedures are set by the RBI, NPCI and individual banks and can change. Always confirm current details in your own bank’s app before a transfer. Last updated June 2026.