How to Fill an NEFT Cheque – A Complete Step-by-Step Guide

In today’s fast-paced digital world, moving money quickly and securely is essential. National Electronic Funds Transfer (NEFT) stands out as a reliable and efficient method for bank-to-bank fund transfers across India. While many use internet or mobile banking for NEFT, initiating a transfer directly from your bank branch using a cheque remains a popular and trusted method.

However, the process can seem confusing. A small error in filling out the cheque or the accompanying form can lead to delays or even transaction failure. This guide is here to demystify the process. We promise an easy, step-by-step walkthrough to ensure your NEFT transactions are smooth and successful every single time.

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What is an NEFT Cheque?

First, let’s clear up a common misconception. There isn’t a special type of cheque called an “NEFT Cheque.” Instead, you use a regular cheque leaf from your chequebook to authorise your bank to debit your account and initiate an NEFT transfer. This cheque is almost always submitted along with a separate NEFT application form provided by the bank.

How NEFT Cheque this different from regular cheque clearing?

• Regular Cheque Clearing: When you give someone a cheque, they deposit it into their account. The cheque then physically (or digitally) travels through a clearing system to your bank, which debits your account. This process can take 1-2 business days.
• NEFT Cheque Process: When you use a cheque for NEFT, you are essentially giving your bank an instruction. The cheque acts as a debit authority. The bank immediately debits the amount from your account and processes the fund transfer electronically through the NEFT network. The funds are then credited to the beneficiary’s account in batches.

Also Read: What is the Validity of a Cheque? Understanding How Long Your Cheque Remains Usable

Advantages of Using the NEFT Cheque Method:

• Faster Transfer: NEFT transactions are processed in half-hourly batches, 24×7, every day of the year. This is significantly faster than traditional cheque clearing.
• Secure & Electronic: The actual fund transfer happens over a secure electronic network managed by the Reserve Bank of India (RBI), minimizing manual handling and risk.
• No Upper or Lower Limit: While banks may set their own limits for branch transactions, the NEFT system itself has no minimum or maximum transaction value.
• Proof of Instruction: You have a physical record (the NEFT form and cheque counterfoil) of the transaction instruction.

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Details Required for an NEFT Transaction

Before you even pick up a pen, make sure you have the following information from your beneficiary (the person you are sending money to). Getting this right is the most critical part of the process.

1. Beneficiary’s Full Name: The name as it appears in their bank account.
2. Beneficiary’s Bank Account Number: Double-check this digit by digit. A single wrong number can send your money to the wrong person. Read Here: How to Fill a Cheque for Another Person:
3. Beneficiary’s Bank Name and Branch: The full name of the bank and the specific branch where the account is held.
4. IFSC Code of the Beneficiary’s Bank Branch: The Indian Financial System Code (IFSC) is an 11-digit alphanumeric code that uniquely identifies a bank branch in the NEFT network. This is mandatory and ensures the money reaches the correct branch. For example, SBIN0001245.
5. Amount to be Transferred: The exact amount in both figures and words.

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Step-by-Step Guide to Filling the NEFT Form and Cheque

The process involves two parts: filling out the NEFT application form and then writing the cheque.

Part 1: Filling the NEFT Application Form

Your bank will provide you with an NEFT/RTGS Mandate Form. This is where you fill in the transaction details.

1. Applicant Details: Fill in your name, account number, and cheque number.
2. Beneficiary Details: Carefully enter all the information you collected:
   • Beneficiary’s Name
   • Beneficiary’s Account Number
   • Beneficiary’s Bank Name & Branch
   • IFSC Code
3. Amount: Write the amount you wish to transfer clearly in both figures and words.
4. Signature: Sign the form in the designated space. Your signature must match the one in the bank’s records.

Part 2: Filling the Cheque

Now, you will write a cheque to authorise the bank to debit the funds from your account.

1. Date: Write the current date in the DD/MM/YYYY format in the top right corner. Post-dating is generally not recommended for NEFT transactions.
2. Payee Name (“Pay”): This is the most important step. Do not write the beneficiary’s name here. You are paying your own bank to make the transfer. Write:
   • Your Bank Name A/c [Beneficiary's Name] (e.g., ABC Bank A/c Rahul Sharma)
   • Or, as instructed by the bank official, simply Yourself for NEFT. Always confirm this with your branch.
3. Amount in Words: On the line ending with “Rupees,” write the transfer amount clearly in words. For example, Five Thousand Rupees Only. End the sentence with “Only” to prevent fraud.
4. Amount in Figures: In the box provided (usually prefixed with ₹), write the numerical amount. Ensure it matches the amount in words perfectly. For example, 5000/-.
5. Signature: Sign the cheque at the bottom right, above “Authorised Signatory.” Your signature must be identical to the one on your bank’s records.
6. “A/c Payee”: It is good practice to cross the cheque on the top-left corner by drawing two parallel lines and writing “A/c Payee” between them. This is an added security measure.

Once both the form and the cheque are ready, submit them to the bank official at the counter. The official will verify the details and give you a stamped customer acknowledgement slip from the NEFT form. Keep this slip safely as it is your proof of transaction.

Read: What is a Self Cheque?

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Common Mistakes to Avoid By Filling an NEFT Cheque

A simple mistake can derail your transaction. Be vigilant and avoid these common errors:

• Incorrect IFSC/Account Number: This is the most frequent and serious error. The transaction may fail, or worse, the money could be credited to a wrong account. Retrieving it can be a long and difficult process.
• Mismatch Between Amount in Figures and Words: If the amount in figures and words does not match, the bank will reject the cheque. As per RBI guidelines, the amount in words is considered the correct amount if there is a discrepancy, but most banks will simply refuse to process it.
• Overwriting or Unclear Handwriting: Avoid scribbling or overwriting. If you make a mistake, it’s safer to cancel the cheque by writing “CANCELLED” across it and use a new leaf.
• Signature Mismatch: A signature that doesn’t match the specimen in the bank’s records is an immediate red flag and will lead to rejection.
• Using a Damaged Cheque: Do not use cheques that are torn, crumpled, or have been altered.

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Tips for Safe and Quick NEFT Transactions

• Double-Check Everything: Before submitting, review every single detail on both the form and the cheque. A second pair of eyes can help!
• Confirm with the Beneficiary: Call or message the beneficiary to confirm their account details before you visit the bank.
• Use CTS-2010 Cheques: Ensure your chequebook is “CTS-2010” compliant (you’ll see this printed on the left side). These cheques have enhanced security features and are processed faster.
• Keep Your Receipt: The customer acknowledgement slip is your proof. It contains a unique transaction reference (UTR) number which can be used to track the transaction.
• Know the Timings: While NEFT is 24×7, transactions initiated at a branch are subject to banking hours. Submitting your request before the bank’s cut-off time ensures faster processing.

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Conclusion

Using a cheque to initiate an NEFT transfer is a secure and reliable way to manage your finances, especially for those who prefer transacting at a bank branch. The key lies in accuracy and attention to detail. By carefully filling out the NEFT form and the accompanying cheque, you ensure your funds reach their destination quickly and without any hitches.

Always remember the golden rule: Check, Double-Check, and then Submit. Happy banking!

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