NEFT (National Electronic Funds Transfer) is a batch-based interbank payment system operated by the Reserve Bank of India (RBI) that allows individuals and businesses to transfer money between any two bank accounts in India. Unlike real-time systems, NEFT processes transactions in hourly batches, available 24/7/365 since December 2019, with no minimum transfer amount and zero charges for transfers below ₹10,000.
When you initiate a NEFT transfer, your bank does not send the funds immediately. Instead, it queues the transaction and submits it as part of a batch to the RBI's NEFT clearing center. The RBI processes these batches every hour throughout the day and night — 48 half-hourly settlement cycles operate around the clock. The recipient's bank then credits the funds after receiving confirmation from the clearing center. This means a NEFT transfer can take anywhere from a few minutes to just under two hours, depending on when you submit relative to the next batch cutoff.
NEFT has no minimum transfer amount, making it suitable for small payments. The maximum per-transaction limit varies by bank — most set it at ₹10 lakh to ₹25 lakh per transaction for retail customers. The RBI mandated that banks charge no fees for NEFT transfers initiated online or via mobile banking, effective January 2020. Branch-initiated NEFT transfers may still carry small charges. To use NEFT, both sender and recipient must have accounts at NEFT-member banks — nearly all scheduled commercial banks in India participate.
India has three major domestic fund transfer systems, each suited to different needs. IMPS (Immediate Payment Service) settles in real time 24/7 and works for amounts up to ₹5 lakh — best for urgent, smaller transfers. RTGS (Real Time Gross Settlement) also settles instantly but has a minimum of ₹2 lakh — designed for large-value transactions. NEFT sits in the middle: no minimum, higher limits than IMPS, batch settlement (not instant), but fully 24/7. For most routine transfers where a 1-2 hour window is acceptable, NEFT is often the default choice.
NEFT is a domestic system only — it cannot receive funds from outside India directly. International remittances arrive via SWIFT or digital asset rails and must convert to INR before crediting to an Indian bank account. Once funds land in an Indian bank, the recipient can move them via NEFT to another Indian account. If you are sending money to India from the US, UK, UAE, or other countries, the final INR credit typically uses NEFT or IMPS internally, but the international leg uses entirely different infrastructure. RemitRoutes compares providers sending money to India on the full corridor cost, including the final local delivery.
NEFT processes transactions in hourly batches, so transfers typically complete within 30 minutes to 2 hours depending on when you submit relative to the next batch cutoff. Since December 2019, NEFT runs 24 hours a day, 7 days a week, including holidays — so there are no blackout periods.
The RBI directed all member banks to not charge customers for NEFT transfers made via internet banking or mobile apps, effective January 2020. If you initiate a NEFT transfer at a bank branch, your bank may still levy a small fee. Check your bank's schedule of charges for branch-initiated transactions.
The RBI has not set a national cap on NEFT transfer amounts. Individual banks set their own per-transaction and daily limits, which typically range from ₹10 lakh to ₹25 lakh per transaction for retail customers. Corporate accounts often have higher limits. For very large transfers (above ₹2 lakh), RTGS is another option that settles in real time.
You need the recipient's full bank account number, the bank's IFSC (Indian Financial System Code) — an 11-character code identifying the specific branch — and the account holder's name. The IFSC is printed on cheque books and available on your bank's website.
No. NEFT is a domestic India-only system. International transfers arrive via SWIFT or digital asset rails and are converted to INR separately. NEFT may be used internally by banks to route the funds to your account after the international transfer has been received and converted, but it cannot directly receive foreign currency transfers.
IMPS (Immediate Payment Service) settles in real time — funds arrive within seconds, any time of day. NEFT uses batch settlement, so funds arrive within 30 minutes to 2 hours. IMPS has a per-transaction cap of ₹5 lakh; NEFT limits are set by individual banks and are typically higher. Both are available 24/7 and free for online transfers at most banks.
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