Posted on Mar 24, 2025
Vikas Chandra Das
Financial Content Expert & Brand Storyteller
NEFT Inward: What It Means and How It Works
The banking landscape is riddled with too many terminologies that confuse people, especially those who are averse to digital banking transactions. One of the terminologies is NEFT inward. This makes it complex for those who don't deal in online transactions. The conventional way of visiting the bank branch for cheque payments is still the order of the day for most people. These terms often create misunderstandings as some feel insecure doing so. However, the downside is the hassles they invite by using cheques and not embracing NEFT transactions that are seamless, fast, and easy to initiate. Why then stand in a long queue for your turn and wait for 2-3 working days for realisation when you can initiate NEFT transfers in a few minutes? In this blog, we will discuss NEFT inward, its meaning, significance, etc. Keep reading!
What Does the NEFT Inward Mean?
Firstly, NEFT stands for National Electronic Funds Transfer. The NEFT system is a suitable alternative to cheque-related transactions many do to transfer money to another bank account. You can also say that the system is perfect for those wishing to receive money faster than cheques. The inward used is in reference to the latter group of people.
Don't be confused by the term Inward after NEFT. The 'Inward' here means the money that comes into a bank account. NEFT transactions are processed within 1-4 hours of initiation, faster than cheque payments, which usually take around 2-3 working days for realisation. Imagine there comes a holiday after the cheque issued date, the cheque realisation time will be pushed further. This is where the NEFT service that operates 24x7 is a game-changer for people wishing to transfer funds quickly to their dear ones, educational institutions, business partners, etc.
How Does the NEFT Inward Work?
The NEFT funds transfer is a three-way mechanism - the sender, the NEFT clearing centre and the receiving bank. It all starts with the sender adding the beneficiary bank account. Let's check below how they can add the beneficiary while making fund transfers via NEFT.
Steps for Online NEFT Transactions
Senders can initiate such transactions through either Internet Banking or Mobile Banking.
How can Senders Make NEFT via Internet Banking?
Here's a guide to how senders can add a beneficiary bank account using Internet banking.
Log in to Internet banking using your credentials.
Go to the 'Funds Transfer' section and click on 'NEFT'.
Click on 'Add Beneficiary'.
Enter the beneficiary's name, account number and Indian Financial System Code (IFSC).
Submit the details
The beneficiary verification process will begin and end in about 30 minutes to an hour.
If everything goes right, the beneficiary's account will be added.
Transfer the amount to the beneficiary's account using the NEFT service.
Steps to Initiate Online NEFT Transactions via Mobile Banking
Open the mobile banking app.
Go to 'Funds Transfer'.
Click on NEFT and then on 'Add Beneficiary'
Enter the beneficiary's name, account number and Indian Financial System code.
Verify the details and submit for verification.
The verification will take 30 minutes to an hour.
Once the verification remains successful, the beneficiary bank account will be added.
The sender needs to transfer the amount to the beneficiary.
Features of NEFT Inward Transactions
24x7 Availability
NEFT batches operate 24x7 from December 2020 onward thanks to the notification from the Reserve Bank of India allowing the same. It has thus allowed people to make fund transfers whenever they want to. However, initiating NEFT transfers through a bank branch won't be possible on Sundays, 2nd and 4th Saturdays of a month, and banking holidays.
Minimum Limit for Inward Payments is Just INR 1
Yes, that's the case! The minimum limit for NEFT transactions is just INR 1. So, people wanting to make even small value transfers can use the NEFT service to do so.
Secure and Reliable Service
Secure transactions are always in demand. In today's times when financial fraud takes centrestage, the need for secure transactions is much higher. The two-factor authentication makes NEFT transfers secure and reliable.
Why is NEFT Inward Important?
Receipt of Salary or Business Payments
NEFT Inward is important for salaried professionals as employers often use this to pay them their monthly dues. So, as a salaried professional, do send your bank account details correctly to your employer for a smooth salary disbursement. The details include your name as per the banking records, the account number and IFSC code. Similarly, businesses can receive their payments through NEFT Inward seamlessly.
Refunds or Reimbursements
Refunds from your company, tax authorities or any other entity will likely come to your savings bank account through NEFT transactions. Even when you are about to receive reimbursements for official expenses, your employer will credit you using the NEFT system.
Family or Personal Fund Transfers
You can transfer funds to your family member or your other bank account using the safe mode of NEFT transactions.
Steps to Track an NEFT Inward Transaction
Tell the sender to send the Transaction Reference Number (TRN) generated upon NEFT transactions.
Use Internet banking or a mobile banking app to check whether the amount is credited to your account.
As the receiver, you can even contact the bank's customer service department for assistance related to NEFT transactions. The customer care representative effectively handles any queries or questions you may have on NEFT Inward transactions.
Common Questions About NEFT Inward
Is there a charge for NEFT Inward transactions?
There are no charges for beneficiaries when it comes to NEFT Inward transactions whether made online or through the bank branch. Online NEFT transactions made by the sender are free, while branch-based transactions incur charges.
How long does an NEFT Inward transfer take?
It usually takes 1-4 hours based on a batch processing system. The batches are processed at half-hourly intervals throughout the day.
Can NEFT Inward fail?
Yes, it can fail owing to multiple reasons, including incorrect beneficiary details, insufficient fund in the sender's bank account, etc.
NEFT Inward vs NEFT Outward
There are two parties in both NEFT Inward and NEFT Outward transactions - Sender and Receiver. As a customer, you can have queries regarding their functionalities. Let us clear them out using this comparison table.
NEFT Outward Charges of Top Banks (Applicable to Transactions Initiated Through Branches Only)
Banks | Charges |
SBI | Up to INR 10,000 - INR 2 + GST Above INR 10,000 - Up to INR 1 Lakh - INR 4 + GST Above 1 Lakh - Up to INR 2 Lakh - INR 12 + GST Above INR 2 Lakh - INR 20 + GST |
HDFC Bank | Up to INR 1 Lakh - INR 2 + GST Above INR 1 Lakh - INR 10 + GST |
ICICI Bank | Up to INR 1,000 - INR 2.25 + GST Above INR 1,000 - Up to INR 10,000 - INR 2.25 + GST Above INR 10,000 - Up to INR 25,000 - INR 4.75 + GST Above INR 25,000 - Up to INR 1 Lakh - INR 4.75 + GST Above INR 1 Lakh - Up to INR 2 Lakh - INR 14.75 + GST Above INR 2 Lakh - Up to INR 5 Lakh - INR 24.75 + GST Above INR 5 Lakh - Up to INR 10 Lakh - INR 24.75 + GST |
Axis Bank | NIL |
Punjab National Bank | Up to INR 10,000 - INR 2.25 + GST Above INR 10,000 - 1 Lakh - INR 4.75 + GST Above INR 1 Lakh - 2 Lakh - INR 14.75 + GST Above INR 2 Lakh - INR 24.75 + GST |
Canara Bank | Up to INR 10,000 - INR 2.25 + GST INR 10,001 - 1 Lakh - INR 4.75 + GST Above INR 1 Lakh - 2 Lakh - INR 14.75 + GST Above INR 2 Lakh - INR 24.75 + GST |
YES Bank | Less Than INR 10,000 - INR 2 + GST INR 10,000 - 1 Lakh - INR 4 + GST INR 1 Lakh - 2 Lakh - INR 12 + GST Above INR 2 Lakh - INR 20 + GST |
Note - Charges can vary from time to time.
Conclusion
Waiting for 2-3 working days for the cheque to be realised successfully into the bank account has been a pressing issue for those seeking fund transfers to their account. In case a holiday comes in between, the delay stretches, causing concerns for those with a certain deadline for payment. NEFT Inward transactions have, therefore, been a game-changer for the general public, educational institutions, trading firms and all those seeking seamless banking services. What adds more is the impeccable security layer in NEFT transactions powered by the RBI's batch settlement services. Every detail is checked thoroughly before the transaction is proceeded further. So, if you want to receive funds, tell the sender to initiate NEFT transactions that are fast, safe and secure.
