Sending and receiving money through an account payee is one of the most effective ways of doing financial transactions between two parties.
Account payee payments are more secure and reliable as they leave digital records for future reference, besides providing security.
Intra-bank fund transfers that involve sending money between accounts at the same bank might be easy to understand.
But when you are going to send money to an account maintained at a different bank through an inter-bank fund transfer, you may have to understand certain aspects of fund transfers.
You may use NEFT and RTGS services to transfer money between different banks. Both NEFT and RTGS are 24/7 financial services provided by the Reserve Bank to the public.
There used to be limited transaction hours before, but as of now, you may do so anytime, anywhere, at your convenience in India.
In order to perform these transactions, you may need a cheque and an NEFT/RTGS form available at SBI counters. The NEFT and RTGS deposit slips can be easily obtained from the branch.
You can download the NEFT/RTGS Deposit Forms from the link below. Fill it out and submit it to the bank along with your cheque.
NEFT and RTGS Transactions of SBI
According to the Central Bank, NEFT and RTGS transactions can be done anytime and anywhere in India.
Earlier, there was a cut-off time for doing the fund transfer, but lately, the Reserve Bank has announced its availability 24/7, including holidays.
Though both of these transactions are meant for transferring funds between different banks, the difference lies in the amount of fund transfer you are dealing with. You can read more about this in this article.
There is no fund transfer limit in NEFT. That means you can transfer any amount of money via NEFT, though the fund settlement is not instant and settles in a batch manner. And it says there are 48 settlements in a day, starting from 00.30 hours until 00.00 hours.
On the other hand, you may find a fund transfer limit in RTGS. Not in the sense of a maximum limit, but there is a minimum transfer limit of ₹ 200000. It means an RTGS is for transactions beyond ₹ 200000 and above. An RTGS gives you the benefit of instant credit as it happens on a real-time settlement basis.
But remember that in both of these transactions, there is no upper limit. The only difference is the lower limit.
When you do NEFT and RTGS transaction via Internet Banking or Mobile Banking, the transaction limit may be only up to ₹10 lakhs. Usually, that’s the limit set by the respective bank to comply with Reserve Bank guidelines. When you do fund transfers from the bank, there is no higher limit for both.
How To Use NEFT and RTGS Transactions in SBI
SBI provides NEFT and RTGS services for a nominal fee to its customers. There are two ways of using the service. One is offline, which requires your chequebook, and the other is through the bank’s internet banking or YONO mobile application.
Sending Money via NEFT and RTGS at SBI Branch
If you happen to visit the bank to transfer funds, you may need to produce a cheque and fill out the NEFT or RTGS form at SBI.
Without a cheque, the bank may reject your request. The services can be availed in multiple ways, such as cash deposits and transfers without cheques. But banks usually prefer account payees with cheques for security reasons.
Here are some of the requirements you should prepare or keep ready to transfer funds using SBI NEFT and RTGS.
|A properly drawn cheque in favour of the beneficiary you intend to pay
|The name of the payee should be written clearly without any errors or overwriting
|Beneficiary’s (payee’s) name and address
|IFSC of the beneficiary bank branch with the branch address
|Your mobile number and email address
The downside of offline NEFT and RTGS transactions is that you may not be able to transact when the bank’s business hours are over.
But when you do it on the bank’s internet banking service or YONO, you may do so at your convenience without any time limitations. However, you need to register the beneficiary to use the service online.
How To Add NEFT/RTGS Beneficiary on SBI Internet Banking
- To add any kind of fund transfer beneficiary, you have to login to the SBI online banking website. The SBI YONO beneficiary addition menu or option is not available as of now.
- Login to the SBI online banking site.
- On the landing page, look for My Account and Profile. Click on it and find the Add and Manage Beneficiaries menu.
- Click the link, and you will be guided to the next screen, where you have to select the type of beneficiary you want to add.
- Intra-bank is between the same bank, that is, from SBI to SBI. For NEFT and RTGS, select the inter-bank option, which is payment to other banks.
- Provide the beneficiary details, such as account number, IFSC number, Name of the beneficiary, transaction limit, etc.
- As soon as you submit the request, you may approve the beneficiary account that you have just added.
- You can expect to start sending money after a few hours. The bank says it may take up to 4 hours to get the beneficiary account fully activated.
Sending money using NEFT and RTGS transactions is easy. You can do it online as well as offline. Online transfers using SBI internet banking are preferably good, as you can do the fund transfer at your convenience.
But if you happen to use the offline mode of doing NEFT and RTGS via bank visit, you may have to carry with you your chequebook along with the beneficiary details.
Get the SBI NEFT form here or get it from the bank while submitting the cheque and let the dealing staff post it in the system. It may take a few minutes to complete your transaction.
When all is done, you may get the UTR number both on the mobile number and email address you mentioned on the NEFT form.