NEFT Timings: Processing Time, Execution Days & Bank Hours

NEFT Timings

As per RBI guidelines, NEFT services are available 24/7, 365 days a year. Below are the key NEFT transfer timings:

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  Regular NEFT Hours (7:00 AM - 7:00 PM): No transaction limit.

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  After-Hours NEFT (7:00 PM - 7:00 AM): Transactions allowed up to ₹1 crore per transaction.

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  Weekends & Holidays: Available 24/7, with a ₹1 crore per transaction limit.

NEFT transactions are processed in half-hourly batches. For instance, a transfer initiated at 11:02 AM will be settled by 11:30 AM, while one made at 11:25 AM will also be processed in the same batch.

For branch-based NEFT transactions, the standard operating hours are:

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  Monday to Friday: 8:00 AM - 7:00 PM

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  Saturdays (except 2nd & 4th Saturdays): 8:00 AM - 6:45 PM

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  2nd & 4th Saturdays, Sundays, and Public Holidays: NEFT at bank branches is unavailable, but online NEFT services remain accessible.

How Long Does It Take to Settle NEFT Transactions?

NEFT transactions are processed in near real-time, typically within two hours. The actual settlement time may vary depending on the bank’s processing system.

According to the Reserve Bank of India (RBI), if you’re making an NEFT transaction for the first time, it may take up to two hours, as the RBI requires around 30 minutes to verify the beneficiary’s account.

For transactions initiated after banking hours, payments are processed through the Straight Through Processing (STP) mode. Both the sender and the beneficiary can track the transaction status through the bank’s NEFT Customer Facilitation Center (CFC) by providing the necessary details.

NEFT Transfer Timings: Old vs. New Guidelines

Before December 2019, NEFT transactions were restricted to specific banking hours. Transfers were allowed only between 8:00 AM – 6:30 PM (Monday to Friday) and 8:00 AM – 12:00 PM (Saturdays). On bank holidays, transactions were put on hold and processed only during official banking hours.

However, since 2020, NEFT transfers have become available 24/7, 365 days a year, with half-hourly settlement batches. This update aligns with the RBI’s vision of promoting digital transactions, enhancing financial accessibility, and integrating India with the global financial ecosystem.

NEFT Cut-off Timings for Major Banks in India

While NEFT transactions are available online 24/7, banks have specific cut-off timings for in-branch NEFT transactions. These timings vary by bank and are essential to consider, especially for transactions on weekends and holidays.

Below are the standard NEFT cut-off timings for some of the leading banks in India:

These timings are subject to change at the bank’s discretion. It is advisable to verify with your respective bank for the latest NEFT cut-off and settlement timings before initiating a transaction.

What Happens if an NEFT Transaction Fails?

Suppose an NEFT transaction is not credited to the beneficiary’s account. In that case, the bank must immediately return the amount to the sender. If the refund is not processed within two hours of the delay, the bank is required to pay penalty interest as per RBI guidelines.

The penalty interest is calculated at the RBI’s Liquidity Adjustment Facility (LAF) Repo Rate plus 2% until the funds are credited to the sender’s account.

For grievance resolution, customers can contact their bank’s Customer Facilitation Center (CFC). Suppose the issue remains unresolved for 30 days. In that case, they can escalate it by filing a complaint under the RBI Integrated Ombudsman Scheme.

When Should You Use NEFT for Fund Transfers?

NEFT (National Electronic Funds Transfer) is a reliable method for transferring money within India. It is best suited for the following situations:

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  NEFT-Enabled Accounts: Both the sender and recipient must have accounts in banks that support NEFT. You can verify this on the RBI website or by contacting your bank.

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  Bank Participation in NEFT: Not all banks are part of the NEFT network, and some may charge a transaction fee. A complete list of participating banks is available on the RBI website.

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  Accurate Recipient Details: To complete an NEFT transfer, you need the beneficiary’s account number, IFSC code, and bank branch details.

Ensure these conditions are met for a smooth and secure NEFT transaction.

Required Beneficiary Details for NEFT Fund Transfer

To initiate a fund transfer through NEFT, the following beneficiary details are mandatory

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  Beneficiary Name

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  Bank Name

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  Branch Name

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  Account Type (Savings, Current, etc.)

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  Bank Account Number

Ensuring accurate details will facilitate a smooth and successful transaction.

How to Transfer Funds Using NEFT (National Electronic Funds Transfer)?

NEFT (National Electronic Funds Transfer) is a secure and efficient method for transferring funds between bank accounts. Follow the steps below to complete your NEFT transaction:

1. Log in to Your Internet Banking Account

2. Access your online banking portal using your secure credentials.

3. Navigate to the ‘Fund Transfer’ Section

4. Once logged in, locate and click on the ‘Fund Transfer’ option on your dashboard.

5. Select NEFT as Your Transfer Option

6. From the available options, choose ‘NEFT’ from the drop-down menu.

7. Add the Beneficiary (if not already registered)

8. If the recipient isn’t listed, add them as a beneficiary by providing the required information.

9. Enter Beneficiary Details

10. Fill in all necessary details, including the beneficiary’s name, branch, bank name, account type, and account number.

11. Input the Transfer Amount

12. Specify the exact amount you wish to transfer.

13. Confirm the Transaction

14. Review all details carefully, then confirm the transaction to initiate the NEFT transfer.

Offline NEFT Transfers

You can also make an NEFT transfer in person by visiting your bank branch. Complete the provided form with all necessary details and submit it to the bank officials to initiate the transfer.

For further assistance or any queries, please get in touch with your bank’s customer service.

How Secure Is an NEFT Transfer?

NEFT transfers are highly secure and are regulated by the Reserve Bank of India (RBI), which adheres to stringent guidelines and international standards. The RBI employs advanced security measures to safeguard transactions, including:

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  Encryption: Utilizes advanced encryption techniques to protect data from unauthorized access.

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  Authentication: Employs digital signatures to verify the legitimacy of both the sender and receiver.

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  Verification: Implements checksums and hash values to ensure data integrity during transmission.

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  Reconciliation: Maintains detailed audit trails to track and verify transaction details for accountability.

Conclusion

NEFT transactions are processed during specific time slots determined by the RBI, making it essential for effective financial planning and timely fund transfers. Note that NEFT transactions are not processed on non-working days, such as the second and fourth Saturdays of the month and bank holidays. Therefore, staying informed about these non-operational days is essential for planning your transactions accordingly.

FAQ's

Can NEFT be done on Sunday?

Yes, NEFT transfers can be initiated on Sundays. Since the service operates 24/7, online transactions are processed in half-hourly batches regardless of the day. However, if you are visiting a bank branch, please note that NEFT services may not be available due to branch closures on Sundays.

Will NEFT work on bank holidays?

Yes, NEFT is available for online transactions on bank holidays as well. The service operates around the clock, 365 days a year. Keep in mind that branch-based NEFT services will not be available on bank holidays due to branch closures.

How much time does NEFT take to transfer money?

NEFT transactions are typically processed in half-hourly batches. Depending on when the transaction is initiated, it may take up to 2 hours for the beneficiary to receive the funds.

What are the NEFT clearance times?

Clearance times for NEFT transactions depend on your bank’s processing schedule. Generally, on workdays (excluding the second and fourth Saturdays), the first batch is processed between 12:30 AM and midnight. The exact timing is determined by when your bank initiates the transaction.

Does NEFT work 24 hours?

Yes, since December 2019, the Reserve Bank of India has enabled NEFT to operate 24 hours a day, 7 days a week, and 365 days a year, ensuring continuous money transfers.

What are the operating hours of NEFT?

Following the RBI’s decision in December 2019, NEFT is now available at all times, including weekends and public holidays. This round-the-clock service facilitates seamless and uninterrupted fund transfers across banks.

How do you know if the NEFT is credited to the beneficiary?

To confirm that your NEFT transaction has been successfully credited, you can:

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  Check for SMS or email notifications from your bank.

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  Review your bank statement.

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  Contact the NEFT Customer Facilitation Centre (CFC) for assistance.