FAQs on National Electronic Funds Transfer (NEFT) System

What is NEFT ?

NEFT stands for `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.

What is the funds availability schedule for the beneficiary ?

The fund transfer takes place within the same day if it within the cut-off time and the next working day if it is beyond the cut-off time prescribed. It is a batch settlement mode.

Are all bank branches in the country part of the NEFT funds transfer network ?

No. As on September 2010, little over 70,000 branches / offices of 99 banks in the country (out of around 80,000 bank branches) are NEFT enabled. List of Punjab National Bank Branches, which are offering this service can be found on our website at

Who can transfer funds using NEFT ?

Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals, firms or corporates who do not have a bank account (walk-in customers) can also deposit cash at the NEFT enabled branch with instructions to transfer funds using NEFT. Such customers have to furnish full details including complete address, telephone number, etc. NEFT, thus, facilitates originators or remitters to initiate funds transfer transactions even without the need for having a bank account.

Who can receive funds through the NEFT system ?

Individuals, firms or corporates maintaining accounts with a bank branch can receive funds through the NEFT system. It is, therefore, necessary for the beneficiary to have an account with the NEFT enabled destination bank branch in the country.

Is there any limit on the amount that could be transferred using NEFT ?

Minimum – No limit

Maximum – Rs. 500.00 lacs

What are the operating hours of NEFT ?

Presently, NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays.

What is the minimum/maximum amount for NEFT transactions under Retail/Corporate Internet Banking ?

NEFT-Online for Retail Internet Banking Customers – Below Rs.2 lac as Maximum amount limit per transaction within the overall per day funds transfer limit of Rs.15 lac.

NEFT-Online & BULK-NEFT for Corporate Internet Banking Customers – no maximum amount limit per transaction but within the authorized / defined limits of the corporate internet banking user.

How does the NEFT system operates ?

Step-1: The remitter fills in the NEFT Application from giving the particulars of the beneficiary (like, name of the beneficiary, name of the bank branch where the beneficiary has an account, IFSC of the beneficiary bank branch, account type and account number) and authorizes the branch to remit the specified amount to the beneficiary by raising a debit to the remitter`s account. Customers enjoying net banking facility offered by our bank can initiate the funds transfer request online. Walk-in customers will, however, have to give their contact details (complete address and telephone number, etc.) to the branch. This will help the branch to refund the money to the customer in case credit could not be afforded to the beneficiary`s bank account or the transaction is rejected / returned for any reason. NEFT has a provision to send SMS/E-mail regarding confirmation of credit of beneficiary`s account.

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

Step-3: The Service centre forwards the same to the local RBI (National Clearing Cell, Mumbai) to be included for the next available settlement.

Step-4: The RBI at the clearing 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 forwarded to banks through their service centre for NEFT.

Step-5: The receiving banks process the inward remittance messages received from RBI and effect the credit to the beneficiary accounts.

What is IFSC ?

IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. This is a 11 digit code with the first 4 alpha characters representing the bank code, 5th character is 0 (zero) and the last 6 numeric characters representing the branch code.

How can the IFSC of a bank-branch be found ?

RBI had since advised all the banks to print IFSC on cheques leaves issued to their customers. IFSC code of Punjab National Bank branches can be found on our website. IFSCs is available on the website of Reserve Bank of India at

What are the processing or service charges for NEFT transactions ?

Service charges for NATIONAL ELECTRONIC FUNDS TRANSFER (NEFT) are as follows

Charges applicable w.e.f. 01-07-2019

Payment System Revised Charges
Inward Transactions Free
Outward Transactions
Transaction Value From Branch From IBS/ MBS
Upto Rs.10000/- Rs.2.00 + GST NIL
Above Rs.10000/- to 100000/- Rs.4.00 + GST
Above Rs.100000/- to 200000/- Rs.12.00 + GST
Above Rs.200000/- Rs.20.00 + GST

When can the beneficiary expect to get the credit to his bank account ?

The beneficiary can expect to get credit for the first ten batches on week days (i.e., transactions from 8 am to 5 pm) and the first five batches on Saturdays (i.e., transactions from 8 am to 12 noon) on the same day. For transactions settled in the last two batches on week days (i.e., transactions settled in the 6 and 7 pm batches) and the last batch on Saturdays (i.e., transactions handled in the 1 pm batch) beneficiaries can expect to get credit either on the same day or on the next working day morning.

Who should be contacted in case of non-credit or delay in credit to the beneficiary account ?

In case of non-credit or delay in credit to the beneficiary account, the NEFT Customer Facilitation Centre (CFC) of the bank and Help Desk of the bank can be contacted .Details of NEFT Customer Facilitation Centres of our bank is available on the websites of our banks and detail of help desk are as under:

Help Desk

The user can contact the nearest Branch and/or approach NEFT Help Desk as under:-

Punjab National Bank


First Floor, PNB House

Sir P M Road, Fort

Mumbai - 400 001


If the issue is not resolved satisfactorily, the NEFT Help Desk (or Customer Facilitation Centre of Reserve Bank of India) at National Clearing Cell, Reserve Bank of India, Mumbai may be contacted through e-mail at nefthelpdeskncc[at]rbi[dot]org[dot]in or by addressing correspondence to the General Manager, Reserve Bank of India, National Clearing Centre, First Floor, Free Press House, Nariman Point, Mumbai – 400 021.

Can NEFT be used to transfer funds from / to NRE and NRO accounts ?

Yes. NEFT can be used to transfer funds from or to NRE and NRO accounts in the country. This, however, is subject to the adherence of the provisions of the Foreign Exchange Management Act, 2000 (FEMA).

Can inward foreign remittances be received through NEFT ?

No. The NEFT system can be used only for remitting Indian Rupees between the participating bank branches within the country.

Can remittances abroad be sent using NEFT ?

No. However, a facility is available to send outward remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.

Can a transaction be originated to draw (receive) funds from another account ?

No. NEFT is a credit-push system i.e., transactions can be originated only to transfer funds to a beneficiary.

Would the remitter receive an acknowledgement once the funds are transferred to the account of the beneficiary ?

Yes. In case of successful credit to the beneficiary`s account, the bank which had originated the transaction is expected to send a confirmation to the originating customer (through SMS or e-mail) advising of the credit as also mentioning the date and time of credit. For the purpose, remitters need to provide their mobile number / e-mail-id to the branch at the time of originating the transaction.

Would the remitting customer gets back the money, if it is not credited to the beneficiary account ?

Yes, the remitting customer gets back the money if it is not credited to the beneficiary account

Is there a way for the remitter to track a transaction in NEFT ?

Yes, the remitter can track the NEFT transaction through the originating bank branch. It is possible for the originating bank branch to keep track and be aware of the status of the NEFT transaction at all times.

What are the pre-requisites for originating a NEFT transaction ?

Following are the pre-requisites for putting through a funds transfer transaction using NEFT:

  • Originating and destination bank branches should be part of the NEFT network.
  • Beneficiary details such as beneficiary name, account number and account type.
  • Name and IFSC of the beneficiary bank branch.
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