How long does it take for an NEFT transfer to get credited to an account?

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National Electronic Funds Transfer (NEFT) is a swift and reliable way of crediting the account of a beneficiary. Under NEFT individuals, firms and corporates can electronically transfer funds from their bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.

How long does it take?

According to the Reserve Bank of India (RBI) the beneficiary is expected to get credit for the first ten batches on week days (i.e., transactions from 8 am to 5 pm) and the first five batches on Saturdays (i.e., transactions from 8 am to 12 noon) on the same day for an NEFT transfer.

How long does it take for an NEFT transfer to get credited to an account?
For transactions settled in the last two batches on week days (i.e., transactions settled in the 6 and 7 pm batches) and the last batch on Saturdays (i.e., transactions handled in the 1 pm batch) beneficiaries can expect to get credit either on the same day or on the next working day morning (depending on the type of facility enjoyed by the beneficiary with his bank).

Also read: How to check NEFT transaction status?

What happens if there is no credit?

There could be several reasons as to why a transaction is not complete by suitable credit to the account of a beneficiary. If for any reason it is not possible to credit the account of a beneficiary the destination banks is required to return the transaction (to the originating branch) within two hours of completion of the batch in which the transaction was processed.

For example, if a customer submits a fund transfer request at 12.05 p.m. to a NEFT-enabled branch, the branch in turn forwards the message through its pooling centre to the NEFT Clearing Centre for processing in the immediately available batch which (say) is the 1.00 pm batch. If the destination bank is unable to afford the credit to the beneficiary for any reason, it has to return the transaction to the originating bank, not later than in the 3.00 pm batch.

On receiving such a returned transaction, the originating bank has to credit the amount back to account of the originating customer. To conclude, for all uncredited transactions, customers can reasonably expect the funds to be received back by them in around 3 to 4 hours time.

That however is never the case, as practically speaking, we have even seen credits happening in a period of 1 to 1 and half hours.

Also read: What is the maximum amount that can be transferred through NEFT?

Should you do NEFT or RTGS?

You should do NEFT transfers for small sums of money, while you should do RTGS for larger sums. Make sure that you keep checkig your account to see if the NEFT amount is credited. In most cases, you will receive an SMS saying that your NEFT amount is credited to the beneficiary.

However, you need to register with your bank to ensure that you receive the SMS and the amount is credited to the account. In case, it does not you can take up the matter with your bank and in case there is no response, you can talk to the RBI officials.

Information courtesy: Reserve Bank of India

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