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First Published: Wed, Mar 02 2011. 11 33 PM IST
Updated: Wed, Mar 02 2011. 11 33 PM IST
The National Electronic Funds Transfer (Neft) is a cheap and fast way of transferring money electronically to anywhere in the country. The person who initiates the transfer, that is the one who remits money, does not even need to have a bank account to avail the facility, although the beneficiary must have a bank account to which the money can be transferred. Customers can simply walk into a bank, with or without an account there, and use the facility to send money. They would, however, have to provide contact details and some other information.
It can be used to remit money to Nepal
Though the system was developed to facilitate domestic fund transfers, it can also be used to transfer funds to Nepal from India, subject to the procedures prescribed by the Reserve Bank of India (RBI). The money is remitted in Indian rupees and withdrawn in Nepalese rupees. The conversion from Indian to Nepalese rupees is done at the Nepal SBI Bank Ltd (NSBL) while making payments to the beneficiaries. But you cannot use the system to transfer money the other way round, that is to India from Nepal.
Quick settlement
Settlements are done every hour starting from 9am till 7pm from Monday to Friday. On Saturdays, there are only five settlements between 9am and 1pm. So your money is transferred within an hour, or at most two, if you initiate the transfer before the last settlement for the day is done. However, for transactions settled in the last batches, the beneficiaries may receive the credit on the same day or the next working day depending on the type of facilities enjoyed by the beneficiary and his/her bank.
It will hardly cost you anything
RBI has waived the processing or service charges for member banks till 31 March. It has also mandated rational fees and charges that banks can impose on customers for the usage of the facility. The domestic transaction charge ranges between Rs5 and Rs25 (excluding service tax) and remitting money to Nepal can cost you between Rs25 and Rs100 (excluding service tax). In India the beneficiary’s bank will not impose any charges. In Nepal if the beneficiary does not have an account with NSBL, then his bank can levy a fee.
It is also NRI-friendly
The facility can also be used to transfer funds to and from non-resident external and non-resident ordinary accounts and pay credit card dues. Some banks offer the facility even through their automated teller machines and net banking.
Though there are no minimum or maximum limits, if you are a walk-in customer or if you are remitting money to Nepal then you cannot remit more than Rs50,000.
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First Published: Wed, Mar 02 2011. 11 33 PM IST
More Topics: Neft | Money Transfer | Bank Account | RBI | NSBL |