What is NEFT (National Electronic Funds Transfer) I NEFT Timings
National Electronic Funds
Transfer (NEFT) is an electronic fund transfer system maintained by the (RBI).
NEFT is a nation-wide payment system facilitating one-to-one funds transfer
from one bank account to another. It is done via electronic messages.
Under this Scheme,
individuals, firms and corporates can electronically transfer funds from any
bank branch to any individual, firm or corporates having an account with any
other bank branch in the country participating in the Scheme.
A bank branch has to be
NEFT-enabled to be a part of the NEFT funds transfer network. This is a simple,
secure, fastest and cost-effective way to transfer funds.
Now, there is no need to
look at your watch or calendar for transferring money online. From December 16,
2019, the Reserve Bank of India (RBI) has allowed NEFT facility available for
24X7 i.e. any time of the day and any day of the week. This
will allow you to transfer the money all around the clock using this facility.
Who can transfer funds through the NEFT system?
All individuals, firms or
corporates maintaining accounts with a bank branch can transfer funds through
NEFT. Individuals who do not have a bank account can also deposit cash at the
NEFT-enabled branches with instructions to transfer funds using this facility.
However, such cash remittances will be restricted to a maximum of Rs.50,000/-
per transaction. Such customers have to furnish full details including complete
address, telephone number, etc. NEFT, thus, facilitates remitters to initiate
funds transfer even without having a bank account.
Who can receive funds via the NEFT system?
All individuals, firms or
corporates maintaining accounts with a bank branch can receive funds through this
facility. It is necessary for the beneficiary to have an account with the NEFT
enabled destination bank branch in the country. This system also facilitates
the one-way cross-border transfer of funds from India to Nepal. The beneficiary
would receive funds in Nepalese Rupees.
NEFT Timings - At what time during the day the NEFT services are available?
From December 16, 2019, you
can transfer funds using NEFT around the clock on all days including weekends
and holidays. This means now you can transfer funds online through NEFT route 24X7
i.e. for 24 hours a day and 365 days a year.
Earlier, this facility could
be availed from 8 am to 7 pm on all working days except 2nd and 4th Saturday as
banks remain closed on that day.
Read the RBI circular about
NEFT timings here
Processing or Service Charges on Online NEFT Transactions
Most banks do not charge
anything for online NEFT transactions. The Reserve Bank of India (RBI) had
waived off all charges on fund transfer via NEFT and RTGS routes. RBI had also
asked banks to pass on the benefits to their customers.
The RBI has also mandated
banks to make all online NEFT transactions free for savings bank account holders
from January 1, 2020. As per the Reserve Bank of India press release, this move
is aimed to encourage savings bank account holders to transfer funds through this
system.
Read the RBI circular about waiver of charges here
When can the beneficiary expect to get the credit to his bank account?
The beneficiary can expect
to get credit within two hours from the batch in which the transaction was
settled. There will be 48 half-hourly batches every day. The
settlement of the first batch will commence after 00:30 hours and the last
batch will end at 00:00 hours.
Minimum / maximum amount stipulation for NEFT transactions
There is no minimum /
maximum limit on the amount of funds that could be transferred using NEFT
system. Generally, it is used for fund transfers of up to Rs 2 lakh. Normally, RTGS
is used for transactions of more than Rs 2 lakh. However, the maximum limit of
funds that could be transferred via this facility varies from bank to bank. Maximum
limits also depend on the customer category.
Transactions that could be initiated using NEFT
Besides personal funds
transfer, it can also be used for the various transaction such as payment of
credit card dues to the card-issuing banks, payment of loan EMI etc. In such
cases, the remitter has to provide the IFSC and account number specified by the
card-issuing bank or loan disbursing bank needs.
Who should be contacted in case of non-credit or delay in credit to the beneficiary account?
In case of non-credit or
delay in credit to the beneficiary account, the Customer Facilitation Centre of
the respective bank can be contacted. Details of Customer Facilitation Centres
of banks are available on the websites of the respective banks.
Benefits of using NEFT (National Electronic Funds Transfer)
1. Cost-effective.
2. A safe and secure method
for funds transferring.
3. One can initiate the remittances
from his home/place of work using internet banking.
4. No need to send the
physical cheque or Demand Draft to the beneficiary.
5. The beneficiary need not
visit his / her bank for depositing the paper instruments.
6. Credit confirmation of
the remittances sent by SMS or email.
7. Near real-time transfer
of the funds to the beneficiary account in a secure manner.
Also read: How to set your financial life in order?
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Also, read: How to start a SIP?
Also, read: Tips to follow when using ATM
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What is NEFT (National
Electronic Funds Transfer) I NEFT Timings
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