When it comes to NEFT transaction timings there is no specific timing during the course of which you can transfer your money. This means that this facility is available round the clock. Moreover, NEFT is the easiest and most convenient way of transferring funds. This is a payment system which the country’s central bank owns and operates. And apart from fund transfer, one can use NEFT for other purposes also, which include:
- Payment of credit card dues
- Payment of EMI of loan
- Inward foreign exchange remittance.
Because the transfer is online there is no involvement of any third party which makes it one of the safest modes of transferring funds. However, the transaction can be performed offline too.
NEFT Transaction Timings
As you must be aware of the fact that NEFT can take place both online and offline. So, offline NEFT transactions are subject to the rules and timings of the concerned banks. Further, their branches are responsible for initiating transactions. This means that one can carry out offline NEFT transactions only on working days during bank hours, i.e. Monday to Friday, and 1st, 3rd and 5th Saturday.
The remitter can transfer funds by visiting the bank to initiate NEFT payment. In doing so, the remitter needs to fill out the NEFT form to perform the transfer. In this mode, the remitter can transfer only up to ₹ 50,000.
When it comes to online NEFT transactions, it operates round-the-clock i.e. 24 hours a day, throughout the year including holidays.
How do the transactions take place earlier?
Previously, NEFT transactions take place subject to specified slots. That is to say, RBI had prescribed timings during which NEFT transactions can be processed.
Therefore, the processing of any NEFT transaction will take place only between 8:00 AM to 6:30 PM from Monday to Friday. However, on Saturdays, the transactions can be processed between 8:00 AM to 12:00 PM.
With effect from December 16, 2019, RBI set up a new NEFT payment system. Now, the online NEFT system is operational 24*7 and 365 days a year. It means NEFT transactions can take place any time throughout the year.
Hence, the operating hours of NEFT are round the clock, on all days of the year. Right now the operation of NEFT takes place in batches at half-hourly intervals, all through the day. If due to any reason NEFT is not available, RBI broadcasts a notification to all system participants.
Reason for Changes in NEFT Transaction Timings
The main objective behind making important changes in the old system is to encourage digital transactions. Also, it tends to enable the worldwide integration of the Indian financial market.
Frequently Asked Questions (FAQs)
What is the maximum time one should expect for crediting funds to the beneficiary account?
You can expect a timeline of 2 hours from the batch settlement. During this time, the account of the beneficiary is usually credited.
What if funds are not credited to the account of the recipient?
If due for any reason funds are not credited, then the destination bank needs to reverse the transaction to the originating branch within two hours of the batch settlement in which it took place.
Is there any penalty for delayed credit or reversal of funds by the beneficiary bank?
Suppose the NEFT transaction is not credited or returned on time. Here, time means within two hours after batch settlement. In this case, the beneficiary bank will have to pay penal interest to the concerned customer.
A word from Business Jargons
Basically, as digitalization has increased the use of electronic payments, there was an urgent need to make changes in the NEFT transaction timings. This is because earlier people can transfer money during working hours only. However, the scenario is completely changed now. People can transfer their money anytime, in just a few steps.