EFT vs NEFT: Key Differences, Speed & Charges Explained
EFT (Electronic Funds Transfer) is a broad umbrella term for any digital money movement between bank accounts, while NEFT (National Electronic Funds Transfer) is a specific, India-only system that settles transfers in hourly batches.
People confuse them because bank apps label every digital transfer as “EFT” in the receipt, yet the same app asks you to pick “NEFT” as the transfer mode. It feels like one is the parent and the other is the child, but both names flash on your screen.
Key Differences
EFT is global and includes IMPS, RTGS, UPI and card payments; NEFT is domestic-only, runs 24×7 in 30-minute batches, and has no minimum amount. EFT settles instantly or within seconds; NEFT can take up to 2 hours during peak slots.
Which One Should You Choose?
For urgent, high-value transfers use RTGS or IMPS (both EFT subsets). For routine, low-value, or after-hours payments, NEFT is free at most banks and just as reliable; the extra wait rarely matters if the receiver isn’t standing at an ATM.
Is NEFT always free?
Most Indian banks waive NEFT charges for online transactions; only branch-initiated transfers may incur a small fee.
Can I cancel a NEFT transfer?
No. Once the batch processes, the money is gone; you’ll need the receiver’s consent for a reversal.
Does EFT work on bank holidays?
Yes. Digital EFT channels like UPI and IMPS operate 24×7, including holidays, while NEFT also runs round the clock now.