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eWay Bill Explain (When,Where,Why)

1. What is an eWay Bill?

EWay Bill is an Electronic Way bill for movement of goods to be generated on the eWay Bill Portal. A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in Alternatively, Eway bill can also be generated or cancelled through SMS, Android App and by site-to-site integration through API. When an eway bill is generated, a unique Eway Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

2.When Should eWay Bill be issued?

  eWay bill will be generated when there is a movement of goods in a vehicle/ conveyance of value more than Rs. 50,000( either each Invoice or in (aggregate of all Invoices in a vehicle/ Conveyance)^# )  –

• In relation to a ‘supply’
• For reasons other than a ‘supply’ ( say a return)
• Due to inward ‘supply’ from an unregistered person

For this purpose, a supply may be either of the following:

• A supply made for a consideration (payment) in the course of business
• A supply made for a consideration (payment) which may not be in the course of business
• A supply without consideration (without payment)In simpler terms,  the term ‘supply’ usually means a:

1. Sale – sale of goods and payment made
2. Transfer – branch transfers for instance
3. Barter/Exchange – where the payment is by goods instead of in money

Therefore, eWay Bills must be generated on the common portal for all these types of movements. For certain specified Goods, the eway bill needs to be generated mandatorily even if the Value of the consignment of Goods is less than Rs. 50,000:

1. Inter-State movement of Goods by the Principal to the Job-worker by Principal/ registered Job-worker***,
2. Inter-State Transport of Handicraft goods by a dealer exempted from GST registration

3. Who should Generate an eWay Bill?

• Registered Person – Eway bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person. A Registered person or the transporter may choose to generate and carry eway bill even if the value of goods is less than Rs 50,000.
• Unregistered Persons – Unregistered persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier. 
• Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.

Update as on 23rd Mar 2018:

Until a date yet to be notified, the transporters need not generate the Eway bill (as Form EWB-01 or EWB-02) where all the consignments in the conveyance :

• Individually(single Document**) is less than or equal to Rs 50,000 BUT
• In Aggregate (all documents** put together) exceeds Rs 50,000

**Document means Tax Invoice/Delivery challan/Bill of supply

Unregistered Transporters will be issued Transporter ID on enrolling on the e-way bill portal after which Eway bills can be generated.

Who	When	Part	Form
Every Registered person under GST	Before movement of goods	Fill Part A	Form GST EWB-01
Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods	Before movement of goods	Fill Part B	Form GST EWB-01
Registered person is consignor or consignee  and goods are handed over to transporter of goods	Before movement of goods	Fill Part B	The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01
Transporter of goods	Before movement of goods		Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01
An unregistered person under GST and recipient is registered	Compliance to be done by Recipient as if he is the Supplier.		1. If the goods are transported for a distance of fifty kilometers or less, within the same State/Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. 2. If supply is made by air, ship or railways, then the information in Part A of FORM GST EWB-01 has to be filled in by the consignor or the recipient

Note: If a transporter is transporting multiple consignments in a single conveyance, they can use the form GST EWB-02 to produce a consolidated e-way bill, by providing the e-way bill numbers of each consignment. If both the consignor and the consignee have not created an e-way bill, then the transporter can do so * by filling out PART A of FORM GST EWB-01 on the basis of the invoice/bill of supply/delivery challan given to them.

4. Cases when eWay bill is Not Required

In the following cases it is not necessary to generate e-Way Bil:

1. The mode of transport is non-motor vehicle
2. Goods transported from Customs port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
3. Goods transported under Customs supervision or under customs seal
4. Goods transported under Customs Bond from ICD to Customs port or from one custom station to another.
5. Transit cargo transported to or from Nepal or Bhutan
6. Movement of goods caused by defence formation under Ministry of defence as a consignor or consignee
7. Empty Cargo containers are being transported
8. Consignor transporting goods to or from between place of business and a weighbridge for weighment at a distance of 20 kms, accompanied by a Delivery challan.
9. Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority.
10. Goods specifed as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
11. Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications.  (PDF of List of Goods).

Note: Part B of e-Way Bill is not required to be filled where the distance between the consigner or consignee and the transporter is less than 50 Kms and transport is within the same state.

 5. Status of Implementation across India

Inter-State movement of goods has seen rise in numbers of generation of eway bills ever since its implementation began from 1st April 2018. State-wise implementation of e-way bill system has seen a good response with all the States and Union Territories joining the league in the generation of eway bills for movement of goods within the State/UT. However, reliefs have been provided to people of few States by way of exempting them from eway bill generation in case of monetary limits falling below threshold amount or certain specified items. For Instance, Tamil Nadu has exempted people of its State from the generation of eway bill if the monetary limit of the items falls below Rs. One Lakh. To know more of such reliefs for other States/UTs, visit commercial tax websites for each of such States/UTs.

6. How to generate eWay Bill

E-Way Bill can be generated on the e-Way Bill Portal. All you need is a Portal login. For a detailed step-by-step guide on e-Way Bill Generation check out our article – Guide to generate e-Way Bill online.  

7. Validity of eWay Bill

An e-way bill is valid for periods as listed below, which is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of e-way bill-

Type of conveyance	Distance	Validity of EWB
Other than Over dimensional cargo	Less Than 100 Kms	1 Day
	For every additional 100 Kms or part thereof	additional 1 Day
For Over dimensional cargo	Less Than 20 Kms	1 Day
	For every additional 20 Kms or part thereof	additional 1 Day

  Validity of Eway bill can be extended also. The generator of such Eway bill has to either four hours before expiry or within four hours after its expiry can extend Eway bill validity.

8. Documents or Details required to generate eWay Bill

1. Invoice/ Bill of Supply/ Challan related to the consignment of goods
2. Transport by road – Transporter ID or Vehicle number
3. Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document

9. Frequently Asked Questions

·        What is the responsibility and liability for the transporter in E-Way bill system?

Transporters carrying goods by road, air, rail, etc. also need to generate e Way Bill if the supplier has not generated an e Way bill due to any reason. Generate e way bill on basis of information shared by the suppliers/ consignors regarding the Invoice/challan. To know more refer to our article on ‘Compliance on e-Way Bills by Transporter’ If the transporter does not generate in the above circumstances when he is required to, he may face penalty of Rs 10,000 or tax sought to be evaded (wherever applicable) whichever is greater, further liable for confiscation of goods and seizure of vehicle.

·        How many e-way bills are required to be generated to ship a consignment to a customer involving multiple transporters (having different Transporter IDs) in between? How will the one invoice-one e-way bill validation be complied here since end customer is only one?

One e-Way bill needs to be generated against the Invoice. Above situation is known as “Transshipment”. Transporter can also re-assign another transporter by updating transporter ID on the eway bill portal. Once transporter re-assigns another transporter, seller cannot make any changes to assigned transporter. So, the user has to generate different delivery challans against the invoice based on the different Transporter ID, because different e-way bills against a single invoice is not possible and will also cause the problem in populating the data in the GSTR-1.

·        How is the criteria of “Value of Consignment of Goods” applied?

Value of consignment of Goods” is interpreted as follows: 1. Invoice Value* exceeds Rs. 50,000 OR 2. If a vehicle carries goods against multiple Invoices, then where the aggregate Invoice value* exceed Rs. 50,000 So, if either of above points is satisfied, the user should generate e-Way Bill. *Invoice Value means transaction value as per Invoice inclusive of all the taxes excluding the Value of exempt goods that are being carried along the taxable goods and billed together.

·        Is e-Way bill required, if the value of shipment per customer per day exceeds Rs 50,000? How will we take multiple invoices under single e-way bill?

Here, it depends whether the supplier himself is the transporter or not. If he is the transporter, then he is required to generate the e-way bill for all the invoices but if not, then the transporter will be required to generate the e-way bill against all the invoices in the Vehicle.

·        For Selection of Sub Type in case of Outward Supply, What do terms “CKD/SKD” & “Line sales” mean?

“CKD/SKD” means the movement of the goods in Completely knocked down condition or Semi Knocked Down condition. For eg: Movement of Fan in different parts, which will be assembled later. “Line Sales” Vertical sales made from one unit / department/division of an organisation to another unit/department/division next in production line within that Organisation

read more FAQ’s on Eway Bill

• Generate e-Way Bill Online
• Generate e-Way Bill using SMS 
• Consolidated e-Way Bill
• Registration  on e-Way Bill Portal

RTGS Vs. NEFT

RTGS Vs. NEFT

Which is a Better Method of Transferring Funds?

Inter Bank Transfer is a special service that allows an individual to transfer funds electronically to accounts in other banks in India through the following two modes:

·         NEFT

·         RTGS

Let us understand these two methods of fund transfer in detail so that we can decide which method you should use in what circumstance.

NEFT

The acronym “NEFT” stands for National Electronic Funds Transfer.  It is an online system for transferring funds from one financial institution to another within India usually the banks). The system was launched in November 2005, and was set to inherit every bank that was assigned to the SEFT (Special Electronic Funds Transfer System) clearing system. It was made mandatory by the RBI for all banks on the SEFT system to migrate to NEFT by mid December 2005. As such, SEFT was discontinued as of January 2006. The RBI welcomed banks that were full members of the RTGS to join the NEFT system.

RTGS

The acronym “RTGS” Stands For ‘Real Time Gross Settlement’.  RTGS is a funds transfer system where money is moved from one bank to another in ‘real-time’, and on gross basis. When using the banking method, RTGS is the fastest possible way to transfer money. ‘Real-time’ means that the payment transaction isn’t subject to any waiting period. The transaction will be completed as soon as the processing is done, and gross settlement means that the money transfer is completed on a one to one basis without clustering with another transaction. The transaction is treated as final and irrevocable as the money transfer occurs in the books of the RBI (Reserve Bank of India). This system is maintained by the RBI, and is available during working days for a given number of hours. Banks using RTGS need to have Core banking to be able to initiate RTGS

Minimum/Maximum amount for RTGS/NEFT transactions under Retail Internet Banking

Type	Minimum	Maximum
RTGS	Rs. 2 Lakh	No limit
NEFT	No Limit	No limit

Minimum/Maximum amount for RTGS/NEFT transactions under Corporate Internet Banking

Type	Minimum	Maximum
RTGS	Rs. 2 Lakh	No limit
NEFT	No Limit	No limit.

Time Schedule for RTGS & NEFT services

RTGS transactions will be sent to RBI based on the following schedule:

RBI Settlement Timings for RTGS Transactions (other than Inter Bank Transactions)
Day	Start Time	End Time
Monday to Friday	09:00 hrs	16:30 hrs
Saturday	09:00 hrs	13:30 hrs

·         NEFT transactions will be sent to RBI based on the following schedule:

RBI Settlement Timings
Day	Start Time	End Time
Monday to Friday	09:00 hrs	19:00 hrs
Saturday	09:00 hrs	13:00 hrs

NEFT transactions are settled in batches based on the following timings:

·         Settlements on weekdays at hourly intervals from 9:00 hrs to 19:00 hrs

·         Settlements on Saturdays at hourly intervals from 9:00 hrs to 1:00 hrs.

Please note that all the above timings are based on Indian Standard Time (IST) only

Mandatory information for RTGS & NEFT payment

The Remitter has to provide the following details:

·         Amount to be remitted

·         Account no. to be credited

·         Name of the beneficiary bank

·         Name of the beneficiary customer

·         Sender to receiver information, if any

·         IFSC code of the receiving branch.

·         Mobile number of the remitter.

The amount will be credited to the account basing on the account number only. As such remitter has should be cautious on the account number while transferring the amounts in electronic mode

Difference between RTGS Vs. NEFT

The fundamental difference between RTGS and NEFT, is that while RTGS is based on gross settlement, NEFT is based on net-settlement. Gross settlement is where a transaction is completed on a one-to-one basis without bunching with other transactions. On the other hand a Deferred Net Basis (DNS), or net-settlement means that the transactions are completed in batches at specific times. Here, all transfers will be held up until a specific time. RTGS transactions are processed throughout the working hours of the system.

 RTGS transactions involve large amounts of cash, basically only funds above Rs 200,000 may be transferred using this system. For NEFT, any amount below Rs 200,000 may be transferred, and this system is generally for smaller value transactions involving smaller amounts of money.

RTGS processes in real-time (‘push’ transfer), while NEFT processes in cycles during the given working day. This causes a NEFT transaction that is initiated later than the last cycle to be completed the next day.

So if you want to transfer large sums of money real time RTGS is better but for small amounts where there is not much urgency NEFT is a Better Option. Usually RTGS costs more than NEFT Transactions.

TABLE OF DIFFERENCES BETWEEN NEFT & RTGS

Criteria	NEFT	RTGS (Retail)
Settlement	Done in batches (Slower)	Real time (Faster)
Full Form	National Electronic Fund Transfer	Real Time Gross Settlement
Timings on Mon – Fri	8:00 am – 6:30 pm	9:00 am – 4:30 pm
Timings on Saturday	8:00 am – 12:30 pm	9:00 am – 1:30 pm
Minimum amount of money transfer limit	No Minimum	2 lacs
Maximum amount of money transfer limit	No Limit	No Limit
When does the Credit Happen in beneficiary account	Happens in the hourly batch Between Banks	Real time between Banks
Maximum Charges as per RBI	Upto 10,000 – Rs. 2.5 from 10,001 – 1 lac – Rs. 5 from 1 – 2 lacs – Rs. 15 Above 2 lacs – Rs. 25	Rs. 25-30 (Upto 2 – 5 lacs) Rs. 50-55 (Above 5 lacs) (Lower charges for first half of day)
Suitable for	Small Money Transfer	Large Money Transfer

Frequently Asked Questions (FAQ) on

Real Time Gross Settlement (RTGS) System

Q1.      What is RTGS System?

Ans. The acronym 'RTGS' stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting). 'Real Time' means the processing of instructions at the time they are received rather than at some later time; 'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

Q2.      How RTGS is different from National Electronics Funds Transfer System (NEFT)?

Ans. NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place with all transactions received till the particular cut-off time. These transactions are netted (payable and receivables) in NEFT whereas in RTGS the transactions are settled individually. For example, currently, NEFT operates in hourly batches. [There are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays.] Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time Contrary to this, in the RTGS transactions are processed continuously throughout the RTGS business hours.

Q3.      Is there any minimum / maximum amount stipulation for RTGS transactions?

Ans. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ` 2 lakh. There is no upper ceiling for RTGS transactions.

Q4.      What is the time taken for effecting funds transfer from one account to another under RTGS?

Ans. Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds transfer message.

Q5.      Would the remitting customer receive an acknowledgement of money credited to the beneficiary's account?

Ans. The remitting bank receives a message from the Reserve Bank that money has been credited to the receiving bank. Based on this the remitting bank can advise the remitting customer through SMS that money has been credited to the receiving bank.

Q6.      Would the remitting customer get back the money if it is not credited to the beneficiary's account? When?

Ans. Yes. Funds, received by a RTGS member for the credit to a beneficiary customer’s account, will be returned to the originating RTGS member within two hours of the receipt of the payment at the PI of the recipient bank or before the end of the RTGS Business day, whichever is earlier, if it is not possible to credit the funds to the beneficiary customer’s account for any reason e.g. account does not exist, account frozen, etc. Once the money is received back by the remitting bank, the original debit entry in the customer's account is reversed.

Q7.      Till what time RTGS service window is available?

Ans. The RTGS service window for customer's transactions is available to banks from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 14:00 hours on Saturdays for settlement at the RBI end. However, the timings that the banks follow may vary depending on the customer timings of the bank branches.

Q8.      What about Processing Charges / Service Charges for RTGS transactions?

Ans. With a view to rationalize the service charges levied by banks for offering funds transfer through RTGS system, a broad framework has been mandated as under:

(a) Inward transactions – Free, no charge to be levied.

(b) Outward transactions 2 lakh to 5 lakh not exceeding 30 per transaction;
Above 5 lakh – not exceeding 55 per transaction.

Q9.      What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effected?

Ans. The remitting customer has to furnish the following information to a bank for initiating a RTGS remittance:

1.    Amount to be remitted

2.    Remitting customer’s account number which is to be debited

3.    Name of the beneficiary bank and branch

4.    Name of the beneficiary customer

5.    Account number of the beneficiary customer

6.    Sender to receiver information, if any

7.    The IFSC Number of the receiving branch

Q10.    How would one know the IFSC code of the receiving branch?

Ans. The beneficiary customer can obtain the IFSC code from his bank branch. The IFSC code is also available on the cheque leaf. The list of IFSCs is also available on the RBI website (http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0112.xls). This code number and bank branch details can be communicated by the beneficiary to the remitting customer.

Q11.    Do all bank branches in India provide RTGS service?

Ans. No. All the bank branches in India are not RTGS enabled. Presently, there are more than 100000 RTGS enabled bank branches. The list of such branches is available on RBI website at: http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0112.xls

Q12.    Is there any way that a remitting customer can track the remittance transaction?

Ans. It would depend on the arrangement between the remitting customer and the remitting bank. Some banks with internet banking facility provide this service. Once the funds are credited to the account of the beneficiary bank, the remitting customer gets a confirmation from his bank either by an e-mail or SMS. Customer may also contact RTGS / NEFT Customer Facilitation Centres of the banks, for tracking a transaction.

Q13.    Whom do I can contact, in case of non-credit or delay in credit to the beneficiary account?

Ans. Contact your bank / branch. If the issue is not resolved satisfactorily, complaint may be lodged to the Customer Service Department of RBI at -

The Chief General Manager
Reserve Bank of India
Customer Service Department
1st Floor, Amar Building, Fort
Mumbai – 400 001
Or send email

Q14.    How can a remitting customer know whether the bank branch of the beneficiary accepts remittance through RTGS?

Ans. For a funds transfer to go through RTGS, both the sending bank branch and the receiving bank branch would have to be RTGS enabled. The lists are readily available at all RTGS enabled branches. Besides, the information is available at RBI website (http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0112.xls). Considering that more than 100000 branches at more than 20,000 cities / towns / taluka places are covered under the RTGS system, getting this information would not be difficult.

Frequently Asked Questions (FAQ) on

National Electronic Funds Transfer (NEFT) System

Q.1.     What is NEFT System?

Ans. National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch.

Q.2.     Are all bank branches in the system part of the funds transfer network?

Ans. No. As on January 31, 2007, 18500 branches of 53 banks are participating. Steps are being taken to widen the coverage both in terms of banks and branches.

Q.3.     Whether the system is centre specific or has any geographical restriction?

Ans. No, there is no restriction in the number of centres or of any geographical area. The system uses the concept of centralised accounting system and the bank's account that are sending or receiving the funds transfer instructions, gets operated at one centre, viz, Mumbai only. The individual branches participating in NEFT could be located anywhere across the country, as detailed in the list provided on RBI website.

Q.4.     What is the funds availability schedule for the beneficiary?

Ans. The beneficiary gets the credit on the same Day or the next Day depending on the time of settlement.

Q.5.     How does the NEFT system operate?

Ans. Step-1: The remitter fills in the NEFT Application form giving the particulars of the beneficiary (bank-branch, beneficiary's name, account type and account number) and authorises the branch to remit the specified amount to the beneficiary by raising a debit to the remitter's account. (This can also be done by using net banking services offered by some of the banks)

Step-2: The remitting branch prepares a Structured Financial Messaging Solution (SFMS) message and sends it to its Service Centre for NEFT.

Step-3: The Service Centre forwards the same to the local RBI (National Clearing Cell, Mumbai) to be included for the next available settlement. Presently, NEFT is settled in six batches at 0930, 1030, 1200, 1300, 1500 and 1600 hours on weekdays and 0930, 1030 and 1200 hours on Saturdays

Step-4: The RBI at the clearing centre sorts the transactions bank-wise and prepares accounting entries of net debit or credit for passing on to the banks participating in the system. Thereafter, bank-wise remittance messages are transmitted to banks.

Step-5: The receiving banks process the remittance messages received from RBI and affect the credit to the beneficiaries' accounts.

Q.6.     How is this NEFT System an improvement over the existing RBI-EFT System?

Ans. The RBI-EFT system is confined to the 15 centres where RBI is providing the facility, whereas there is no such restriction in NEFT as it is based on the centralised concept. The detailed list of branches of various banks participating in NEFT system is available on our website. The system also uses the state-of-the-art technology for the communication, security etc, and thereby offers better customer service.

Q.7.     How is it different from RTGS and EFT?

Ans. NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and works on net settlement basis, unlike RTGS that works on gross settlement basis. While EFT is restricted to the fifteen centers (only where RBI offices are located), NEFT is a nation-wide electronic fund transfer system.

Q.8.     Any limit on the amount of individual transaction?

Ans. There is no value limit for individual transactions.

Q.9.     What about Processing Charges/Service Charges

Ans. While RBI has waived the processing charges till March 31, 2008, levy of service charges by banks is left to the discretion of the respective banks. The bank-wise details of charges levied are available on the RBI website.

Q.10.   How will I know which are the branches participating in the NEFT?

Ans. RBI publishes the list of bank branches participating in the NEFT on its website i.e. www.rbi.org.in.

Q.11.   What is IFS Code (IFSC)? How it is different from MICR code?

Ans. Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch. The MICR code has 9 digits to identify the bank-branch. 

Q.12.   How will I know, what is the IFS Code of my bank-branch?

Ans. RBI had since advised all the banks to print IFSC on cheques leaves issued to their customers. You may also contact your bank-branch and get the IFS Code of that branch.

Q.13.   Whom I can contact, in case of non-credit or delay in credit to the beneficiary account?

Ans. Contact your bank/branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted on cgmcsd@rbi.org.in or write to:

The Chief General Manager,

Reserve Bank of India,

Customer Service Department,

1st Floor, Amar Building, Fort,

Mumbai-400001

Q.14.   Is it necessary to have a bank account to originate the NEFT transaction?

Ans. Yes, NEFT is an account to account funds transfer system.

Q.15.   Is it necessary that the beneficiary should have an account at the destination bank-branch?

Ans. Yes, NEFT is an account to account funds transfer system.

Q.16.   Can I receive foreign remittances through NEFT?

Ans. This system can be used only for remitting Indian Rupee among the participating banks within the country.

Q.17.   Can I send remittances abroad using the NEFT?

Ans. No

Q.18.   Can I originate a transaction to receive funds from another account?

Ans. No

Q.19.   Can I send/receive funds from/to NRI accounts?

Ans. Yes, subject to applicability of provisions of FEMA

Q.20.   Would the remitting customer receive an acknowledgement of money having been credited to the beneficiary's account?

Ans. Acknowledgement is generated for the customer at his branch informing him that his remittance is received by the beneficiary. However the mode of communication would depend on the facility provided by bank / branch.

Q.21.   Would the remitting customer get back the money if it is not credited to the beneficiary’s account?

Ans. Yes, the remitting customer gets back the money if it is not credited to the beneficiary account.

Q.22.   Till what time NEFT service window is available?

Ans. There are six settlements at 0930, 1030, 1200, 1300, 1500 and 1600 hours on weekdays and 0930, 1030 and 1200 hours on Saturdays.

Q.23.   What is the essential information that the remitting customer would have to furnish for the remittance to be effected?

Ans. The essential information that the remitting customer has to furnish is:

·         Beneficiary details such as beneficiary name and account number

·         Name and IFSC of the beneficiary bank branch.

Q.24.   Is there any way a remitting customer can track the remittance transaction?

Ans. The remitting customer can track the remitting transaction through the remitting branch only, as the remitting branch is informed about the status of the remitted transactions.

Precautions when using NEFT and RTGS Transfer Systems

An electronic funds transfer (EFT) is generally considered both secure and safe since they have built-in security features. However, since they are often coursed through different communication mechanisms, it is also important to understand what precautions you need to take to stay safe.

Precautions:

·         Ignore emails supposedly coming from your bank, from PayPal or from you credit card service provider informing you that your account with them has been compromised. Usually, this also comes with an official-looking request and forms to fill up wherein you will provide all your personal information. The standard procedure observed in cases where such information is needed is to submit them directly at the secured website or at the bank itself.

·         Avoid downloading freebies like software applications since this is how malware or spyware gets attached to your PC. Spyware can extract information from your computer without your knowing it and can surreptitiously relay your info to the author of the spyware.

·         In case your credit cards, debit cards or ATM cards have been stolen, report the matter immediately to the credit company or to your depository bank to block all future transactions.

·         Make it a point to review your credit reports periodically if you frequently or regularly make purchases via online stores. Particularly if your credit purchases are your most common electronic transactions. Report any unauthorized transactions or cash advances immediately to the credit reporting bureau and to your credit card service provider.

·         Install additional security software if necessary. Some protection features may include those that can detect and block unusual activities going on in your PC.

·         Keep yourself up to date with the latest trends on how cybercrimes are carried out and know the precautionary measures to take.

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