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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.

 

Timings for NEFT Transfer

Timings for NEFT Transfer

The NEFT transfer timings are from 8.00 am to 6.30 pm, while for RTGS it is from 8 am to 4.30 pm. It is important to remember that this on all days except on Sundays and the second and fourth Saturdays.

The time frame
 

The time frame

The time taken really depends on  a host of factors. In case it does then there are bright chances that your NEFT transfer has not gone through. In this case you have to take necessary steps and inform the banker. It does happen at times that a bank account may have been frozen, which is why there has been a delay in the NEFT transfer being credited. That is highly likely for a host of reasons. It also goes in batches and not in one shot, which is why it does take some time.

What happens if there is no credit?

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.

Should you do NEFT or RTGS?

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.

Is NEFT Transfer safe?

Is NEFT Transfer safe?

The NEFT transfer though it may take time, and is not like credit happens in real time, is one of the safest. NEFT transfer may take as long as one hour, but, in the end it is rather safe. In fact, it has emerged as the safest and the most reliable way to send and receive money through the electronic route. It has made way for lesser and lesser dependence on the cheque. If you are looking for a reliable way to send and receive money, the NEFT transfer mechanism is the best.

Who can use NEFT?

Individuals, corporate house who are maintaining bank accounts can transfer funds using the NEFT mechanism. Individuals who do not have a bank account (i.e. walk-in customers) can directly deposit cash through NEFT enabled branches with instructions to transfer funds using NEFT and the remitted amount is restricted to a maximum of Rs 50,000 per transaction. These customers have to provide complete details like name, phone number, residential address and so on, before availing such facilities in the bank branches.

What are the minimum and maximum limit on the amount that could be transferred through NEFT?

There is no minimum or maximum limit on the amount of funds that could be transferred through NEFT. In case of cash-based remittances within India, the maximum amount per transaction is restricted to Rs 50,000 and it is also applicable for remittance to Nepal, under the Indo-Nepal Remittance Facility Scheme.

Benefits of NEFT

Benefits of NEFT

Benefits of NEFT

The NEFT offers many advantages to its users over other modes of fund transfer. They are:

  • It is cost-effective.
  • There is no need for the beneficiary to visit his or her bank for depositing the paper instruments.
  • The credit confirmation of the remittances will be sent by SMS or e-mail.
  • The remitter need not have to send the physical cheque or demand draft to the beneficiary.
  • Remitter can initiate the remittance from his or her house or place of work using internet banking also.
  • Near real-time transfer of the funds will be securely done to the beneficiary account.
  • The beneficiary need not be worried about the loss or theft of the physical instruments or the likelihood of the fraudulent encashment thereof.
Now you can transfer money without any charges at any time through NEFT

Now you can transfer money without any charges at any time through NEFT

You can transfer money online using the 24x7 National Electronic Funds Transfer route (NEFT). The Reserve Bank of India said earlier this month that bank customers will be able to transfer funds via NEFT 24x7 every day, including weekends and holidays, starting on December 16.

Previously, the NEFT payment system worked for customers from 8:00 a.m. to 7:00 p.m. every working day, except the 2nd and 4th Saturday, the banks remaining closed on that day.

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 after normal bank hours should be automated transactions initiated using Straight Through Processing (STP) methods by banks.
  • The existing discipline to credit the beneficiary's account or return the transaction (within 2 hours of payment of the respective batch) to the originating bank will continue.
  • Member banks will ensure the sending of a positive confirmation message (N10) for all NEFT credits.
    All the provisions of the NEFT procedural directives will also apply to NEFT 24x7 transactions.
  • RBI has instructed banks not to charge any fees on NEFT transactions made by savings account holders as of January 1, 2020. According to the central bank press release, this measure is aimed at pushing savings bank account customers to transfer money using electronic modes via NEFT.

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