NEFT means National Electronic Fund Transfer which is a nationwide electronic payment system allowing the quick interbank transfer of funds. The transactions between banks are processed and settled in batches of one hour on netting off basis. Hence, the time to transfer the funds can range between 1-2 hours.
All NEFT transactions can be settled immediately or within a few hours (usually 2 hours). The actual time required for the settlement of these transactions, however, may vary from bank to bank.
According to the RBI circular which is issued on December 6, Availability of the National Electronic Funds' Transfer system (NEFT) 24/7: The service will be available every day of the year, including holidays.
NEFT Transactions are extremely swift and can take as little as 15 minutes. However, sometimes it can take as long as 2 hours. This is extremely rare though and you can expect credit anywhere between 15 minutes to an hour. The charges for making an NEFT transfer are around Rs 2.50 per Rs 10,000 that is sent.
The transactions get processed immediately. On the other hand, the time taken in NEFT is subject to cut-off timings and batches of the banks. It usually gets completed within 2 hours.
What happens when the NEFT amount is not credited? After checking the NEFT transaction status after completion of two hours and if the amount is not credited, the bank would return the amount and credit to the remitter. The entire process might take sometime. So, you need to wait with some patience.
Online NEFT can be done only within the mentioned cut off time. We cannot stop the payment or cancel and NEFT trasanction that is already initiated.
Earlier, NEFT Transactions did not take place on second and fourth Saturdays, Sundays and Bank holidays. However, the Reserve Bank of India has made NEFT a 24×7 available service for 365 days of the year, including holidays.
Which payment mode is faster NEFT or RTGS? RTGS is the faster payment mode as it occurs in real time but NEFT is cleared in batches.
As of now, NEFT transfers are only available till 7:45 pm on working days. The second and fourth Saturdays are also not operational for NEFT.
If you have to make a transfer quickly and don't want to go through the hassle of registering a beneficiary, opt for IMPS. On the other hand, if you want to transfer a large amount, NEFT is the better choice.
NEFT transactions done after banking hours will be automated using 'Straight Through Processing (STP)' modes by the banks. The existing rule of crediting the beneficiary's account or returning the transaction (within 2 hours of settlement of the respective batch) to originating bank will continue, RBI said.
Presently, NEFT operates half hourly batches from 8 am to 7 pm on all days except 2nd & 4th Saturday and Sunday & holidays. RTGS: The acronym RTGS stands for Real Time Gross Settlement. This is a system where the processing of funds transfer instructions takes place at the time they are received (real time).
NEFT Transaction Timings
Any NEFT transaction would be processed only between 8:00 AM and 6:30 PM from Monday to Friday, and 8:00 AM to 12:00 PM on Saturdays. However, from 2020, NEFT transactions can be performed 24*7. This was done to promote digital transactions and global integration of financial markets.
NEFT transactions after usual banking hours are expected to be automated transactions initiated using 'straight-through processing (STP)' modes by the banks. As usual, the fund transfer will be settled within 2 hours after making the NEFT transaction.
The transactions between banks are processed and settled in batches of one hour on netting off basis. Hence, the time to transfer the funds can range between 1-2 hours.
RBI stated that with effect from 1 January 2020, no banks shall levy any charges from their savings account holders on online fund transfers done through NEFT (National Electronic Funds Transfer) system.
“A retail customer can transfer up to a maximum of ₹20 lakh in a day using both mobile and internet banking channels such as RTGS, NEFT, IMPS and UPI. Customers can always use the branch channel for transferring money beyond this limit.
While it is compulsory to mention the name of the beneficiary and the IFSC code, the reliance for transferring money is only on the account number.
When you transfer money using NEFT and RTGS, if money is not credited to beneficiary it will return to your account. NEFT and RTGS return back or failure basic reasons are Account Number is wrong, IFSC code is wrong, Connectivity failures. These are the Automatic Clearing House Return Codes.
The transaction will be settled to your beneficiary as per the RBI batch which ideally takes 30 mins to 4 hours. 5. If an NEFT transaction is not credited to a beneficiary account, does the Remitter get back the money? Yes.
Ans: You may approach NEFT Help Desk / Contact point of the RBI at following address: The NEFT Help Desk (or Customer Facilitation Centre of RBI), Primary Data Centre (PDC), RBI, CBD Belapur, Navi Mumbai, Maharashtra- 410210.
NEFT is a payment system where the settlement of funds takes place in half-hourly batches. RTGS a payment system of continuous and real-time settlement of fund transfers. RTGS is preferred for urgent transfer of large amounts. NEFT is preferred for transfers that are not time-sensitive.
A UTR or Unique Transaction Reference number is a reference number for identifying an NEFT, IMPS or RTGS transaction. Every bank in India uses UTR numbers for all local modes of money transfer and they are beneficial for recipients in case there has been no recent update or credit corresponding to your transaction.