NEFT beneficiary identification: 5 things you need to take care of before transferring money

Before doing an NEFT fund transfer, users must be aware of certain essential details required for remitting funds to the beneficiary.

New Delhi: NEFT is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.

Although there is no limit imposed by the RBI for funds transfer through NEFT system, some banks may place amount limits based on their own risk perception with the approval of its Board.

However, before doing an NEFT, users must be aware of certain essential details required for remitting funds through the system. There are several essential elements of beneficiary's identification.

Here are 5 things regarding beneficiary's identification you need to take care of while doing NEFT

1. Beneficiary's Name

2. Beneficiary's Branch Name

3. Beneficiary's Bank Name

4. Beneficiary's Account Type and Beneficiary's Account No.

5. Beneficiary's Branch IFSC

It is to be noted that with effect from July 1, 2019, processing charges and time varying charges levied on banks by Reserve Bank of India (RBI) for outward transactions undertaken using the RTGS system, as also the processing charges levied by RBI for transactions processed in NEFT system was waived by the Reserve Bank.