Saturday 21 December 2019

What is NEFT (National Electronic Funds Transfer) | NEFT Timings

What is NEFT (National Electronic Funds Transfer) I NEFT Timings

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 start a SIP?

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What is NEFT (National Electronic Funds Transfer) I NEFT Timings





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