NEFT stands for National Electronic Fund Transfer. It is an electronic system used worldwide by banks. By SBI NEFT, customers can transfer funds from one bank to another with a lot of ease. The Reserve Bank of India conceptualised it to help customers to transfer funds without any hassle. All SBI NEFT transactions are done in batches and settled in 30-minute intervals.
Real-Time Gross Settlement (RTGS) is an electronic method of transferring funds where the funds get transferred in real-time. To initiate the transfer, you must have the IFSC code of the beneficiary’s bank, along with their name, their bank’s name, and account number.
You can individually transfer funds using SBI RTGS with an Internet banking account. This is a secure system for funds transfer, available on all days on a 24x7x365 basis. While the minimum amount you can transfer via RTGS is ₹2 Lakhs, there is no cap on the maximum amount set by the RBI.
Demand Draft is a pre-paid negotiable instrument where the bank, while making the SBI DD, undertakes the responsibility to make full payment whenever the DD is presented for payment. The beneficiary must deposit the same in the bank account or get the same collected through the branch.
While making SBI DD, the bank deducts the amount from the bank account of the individual making DD and deposits the same in their account. The banker is responsible for making the payment when the DD is presented for clearing.
Features and Benefits
A) NEFT
The following are a few of the features and benefits of NEFT transactions.
- NEFT transactions are safe and reliable, as they follow a secure network.
- These transactions can be processed between accounts from the same bank or accounts from different banks offering NEFT-enabled services.
- You can initiate NEFT transactions through various channels like mobile banking and online banking.
- You can execute NEFT at any time throughout the year
- All NEFT transactions are settled within 24 hours
- NEFT services are available nationwide
- For a NEFT transaction, the customer has to pay a nominal fee, depending upon the transaction amount.
- To transfer funds through NEFT, you must first add the beneficiary through online banking.
- You can use the NEFT service for various purposes, such as online purchases and bill payments.
B) RTGS
The following are a few of the features and benefits of RTGS transactions.
- Every RTGS is processed individually.
- Funds get transferred immediately to the beneficiary’s bank.
- It is available 24*7, even on weekends and bank holidays.
- It is designed for high-value transactions and has a minimum transfer limit of INR 2 lakhs.
- They can be initiated either online or offline.
- It requires a few details like the beneficiary’s name, bank account number, branch, and IFSC.
- It is reliable, safe, and encrypted to give maximum security.
C) Demand Draft
Mentioned below are the features of the SBI DD:
- DD is payable on demand
- There is no stamp on a DD
- Can be negotiated by endorsement and delivery
- Not payable to the bearer
- It cannot be stopped except by a court order
- Amount is refunded if DD is not delivered
- The purchaser of the DD need not be a customer of the bank
Fees and Charges
A) NEFT
Mentioned below are the SBI NEFT Charges:
| Transaction Amount | NEFT Charges for Branch | NEFT Charges for Net Banking |
| Up to INR 10,000 | INR 2.00+ GST | NIL |
| Up to INR 10,001 to INR 1 lakh | INR 5.00+ GST | NIL |
| Above INR 1 lakh up to INR 2 lakh | INR 15.00+ GST | NIL |
| Above INR 2 lakh | INR 25.00+ GST | NIL |
B) RTGS
Mentioned below are the SBI RTGS Charges:
| Transaction Amount | RTGS Charges (excluding GST) |
| INR 2 lakhs – INR 5 lakhs | INR 25 |
| Above INR 5 lakhs | INR 50 |
C) DD Charges
Mentioned below are the SBI DD Charges:
| Demand Draft Issue and Amount | Charges |
| Up to INR 5,000 | INR 25 (including GST) |
| Above INR 5,000 and up to INR 10,000 | INR 50 (including GST) |
| Above INR 1,00,000 | INR 4 (including GST) per INR 1,000 Min. INR 600 (including GST) Max. INR 2,000 (including GST) |
| DD Cancellation or Issuance of Duplicate DD | INR 200 + GST |
| Demand Draft Cancellation Charges | Up to INR 500 – NIL Above INR 500 and up to INR 5,000 – INR 25 + GST Above INR 5,000 and up to INR 10,000 – INR 50 + GST Above INR 10,000 – INR 100 + GST |
Details to be filled out in the SBI Form
A) NEFT
Mentioned below are the contents of the SBI NEFT Form:
- In Customer’s Copy:
- Applicant’s Branch Name
- Beneficiary’s Account Number, Name, Bank Name, Branch Name, IFSC.
- Amount to be transferred
- Name and Account Details
- Beneficiary’s Name, Bank Name, Branch Name, and Account Number
- In Bank’s Copy:
- SBI Branch Name
- Date
- Beneficiary’s Account Number, Name, Bank Name, Branch Name, IFSC.
- Amount to be Transferred along with Commission (SBI NEFT Charges)’
- Signature of the applicant
B) RTGS
Mentioned below are the contents of the SBI RTGS Form:
- Sender’s account number
- Name of the account holder
- Name of the payee
- Beneficiary bank name
- Beneficiary branch name
- Beneficiary bank branch IFSC code
- Beneficiary account number
- Beneficiary account type
- Amount to be paid
- Exchange amount
- Signature of the sender
- The mobile or telephone number of the sender
- PAN number of the sender
- The total amount including the amount to be paid and the exchange
C) DD
Mentioned below are the contents of the SBI DD Form:
- Name and Address of the drawer (your name)
- Name of the drawee
- Name and address of the payee
- Name of the city where DD is payable
- Amount payable to the drawee (in words)
- Amount owed to the drawee (in figures)
- Exchange (fee charged by the bank)
- Total amount payable by the drawer to the bank (in figures)
- Signature of the drawer
- Name and Address of the drawer
FAQ’s
- Which is faster: NEFT or RTGS?
RTGS is a faster form of money transfer for transactions of INR 2 lakhs and above, with a time limit of 30 minutes for funds to be transferred to the beneficiary account. NEFT transaction is undertaken for transactions below INR 2 lakhs and is done in lots, so takes around 2- 3 hours for the money to get transferred.
