National Electronic Fund Transfer has increasingly gained acceptance and is fast displacing cheques as the means to sending and receiving money.
There are no disadvantages of this system, except the minimal charges that are applicable, as compared to cheques, which are free. These days there is also the IMPS way of transferring and remitting money.
The NEFT which is an electronic fund transfer system is maintained by the Reserve Bank of India. It was started in November 2005. The system was established and maintained by the Institute of Development and Research in Banking Technology. It helps the bank customers across the country to transfer funds between two NEFT enabled bank accounts on a one - to - one basis. It works mainly on electronic messages. In NEFT fund transfer settlement is done in half-hourly batches with 23 settlement happening between 8:00 in the morning till 19:00 during weekdays and also on the first, third and fifth Saturdays of the calendar month. If a transfer is initiated after this period, then the same will be settled at the next available window. The NEFT transaction can be initiated only when the transaction amount is less than Rs 2 lakh.
With NEFT becoming popular amongst the customers, the RBI in August 2019 announced that it will enable round - the - clock settlements starting from December 2019.
However, there are many individuals who often ask the question: How to know if NEFT amount has been credited to the party.
Here is how you could check the NEFT transaction status?
There are four ways in which you would know if the NEFT transaction is complete:
1) Through SMS
Let us say, you add a beneficiary to the NEFT transfer mechanism, when you are sending and receiving money. You would have to furnish your email and phone number.
After the beneficiaries account has been credited, you get an instant alert, through an SMS, that the beneficiary account has been credited. This is how you would know that the NEFT transaction has been completed. Make sure that you give an updated number when you are making the NEFT transaction.
2) Through EMAIL
You would also know if the beneficiary account has been credited by email. Banks like HDFC Bank allow you an option to either give your email or phone number, before you make an online NEFT transfer.
If you have no net access over your phone, it is better to give the phone number, so as to enable you know immediately if you have received the amount or not. You can instantly check your email and no the status of your NEFT transaction.
3) Contact the bank
You can also contact the bank to know if the NEFT transaction status has been completed. You need to give at least 2 hours.
When should you check your NEFT transaction status?
Normally, the NEFT transaction is almost always completed before two hours, however, at times there can be a delay, which is why we are saying you need to give at least two hours.
Normally, there can be many issues that has led to non credit. For example, if the IFSC code is wrong the amount would almost always be returned back.
In such cases what does happen is that the bank credits the amounts back to the person. This is only when the beneficiaries account is not credited. Check bank IFSC codes here for transferring money through NEFT
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.
4) Important to give mobile, email and all other relavent details
It is important to give your mobile number and email ID, so as to enable the bank send either an SMS to you informing you that the beneficiaries account has been credited through the NEFT transaction.
The system is today full proof and if the IFSC codes are correct, there is no question of the amount not being credited. In any case, cross check all relevant details before sending money. IFSC codes are generally used for transferring higher amount, while NEFT is used for remitting lower amounts.
How long to check the status after?
Normally you can check the status after 30 minutes to one hour. In the cities or bigger towns it is doubtful that the amount of time taken would be beyond this. NEFT Transactions have become even more swift these days with the advent of newer and improved technology. The RTGS could be a little faster though that is largely restricted for bigger transactions.
What to do when an NEFT transaction declines?
The National Electronic Funds Transfer (NEFT) is one of the most widely used securable and safe services in internet banking in India. It started many years ago in 2005, NEFT has become an integral part of our daily lives. Fast and reliable, it has slowly replaced check payments as the transfer takes two hours today. Although rare, an NEFT transfer can fail due to some technical problems. It can happen at the time of a large number of payments on the last day of the month or so. This is what you should do, in case your NEFT transaction fails, that is, the sender's account is debited but the beneficiary's account is not credited with the amount.
Note the Reference Number: Be sure to make a note of the reference number of the NEFT transaction. This will be present in the NEFT acknowledgement received after the NEFT transfer from your bank account. Therefore, it is important that you keep the receipt on your desktop/laptop/smartphone.
Contact Referring Bank: Contact the submitting bank's NEFT Customer Facilitation Center (CFC). The contact numbers are present on the website of the Reserve Bank of India. Please have the NEFT reference number in hand while you inquire about the transaction status. They will be able to give you information such as whether the amount has gone to the beneficiary bank account or not and in which batch it was transferred to the destination bank.
Contact the destination bank: If the amount has gone to the destination bank, then it is necessary to contact the NEFT Customer Facilitation Center (CFC) of the destination bank with the NEFT reference number. Again, you will find contact numbers on the RBI website to reach them. They should be able to give an approximate time frame by which the amount can be credited to the beneficiary's bank account.
Contact RBI: Even after contacting the destination bank, if the issue is not resolved satisfactorily, the RBI NEFT Help Desk can be contacted.
Post correspondence address to
Reserve Bank of India,
National Clearing Center,
First floor, Mumbai regional office,
Fort Mumbai 400001.