How Much Time Does Neft Transfer Settlement Take

On March 1, 2024, the Reserve Bank of India (RBI) reported that the National Electronic Funds Transfer (NEFT) system had reached a historic milestone by completing the highest-ever daily transaction volume of over 4.10 crore transactions on February 29, 2024. 

Over the last decade (2014-23), NEFT and Real Time Gross Settlement (RTGS) have grown by 700% and 200%, respectively. In terms of volume, NEFT surged by 670%, whereas RTGS increased by 104%. 

Introduced in November 2005 by the Reserve Bank of India, NEFT revolutionized fund transfers across banks, offering a safe, reliable, and convenient method. When it comes to transferring money securely and efficiently, the National Electronic Funds Transfer (NEFT) system is a reliable choice for millions of Indians. 

In June 2024, Indian banks processed close to 7300 lakh transactions, both inward and outward, amounting to transactions worth around ₹34 lakh crores, highlighting its extensive use and importance (RBI.org.in). 

This guide is an attempt to cover essential NEFT processes, timings, and transaction limits, to help you manage your financial transactions better. 

What is NEFT? How Does It Work? 

The Reserve Bank of India launched the National Electronic Funds Transfer, or NEFT, electronic payment system. It makes safe money transfers between Indian banks possible. In order to ensure prompt payouts, NEFT processes transactions in half-hourly batches and is available around-the-clock. 

To initiate an NEFT fund transfer, you need the recipient's bank details, including the account number and IFSC code. Once initiated, the transaction is queued and processed in the next batch. This method ensures a secure and efficient transfer of funds, making it a preferred choice for millions. 

NEFT Timings: When Can You Transfer Funds? 

NEFT transactions are typically processed in half-hourly batches. Here’s a detailed breakdown of the timings and settlement process: 

Operating Hours 

NEFT is available 24 hours a day, and 365 days a year, even on weekends and holidays. According to the RBI, there are no restrictions on NEFT timings during banking hours, weekends, or public holidays. This round-the-clock availability ensures you can initiate a transaction at any time, making NEFT fund transfer highly flexible. 

However, NEFT transactions follow the guidelines laid down by the RBI. Therefore, NEFT transactions do not occur on RBI holidays. These dates may vary each year, and the RBI declares NEFT holidays for the following year on the last day of the current year. Transactions made on these NEFT holidays will be debited from the payer’s account on the same day but will be credited to the beneficiary’s account on the next working day. 

Settlement Process 

NEFT transactions are settled in 48 half-hourly batches throughout the day. For example, if you request to send money at 2:07 p.m., it will likely be processed by 2:30 p.m. Even if you request it at 2:25 p.m., it will still be processed by 2:30 p.m. This efficient batch processing reduces the overall time taken for funds to be transferred from the sender's account to the receiver's account, ensuring a swift and secure fund transfer. 

Cut-Off Timings for Same-Day Settlement 

You have to start the transfer during business hours at your bank if you want your transactions to clear that same day. NEFT transactions can normally be made at bank branches between the hours of 8 a.m. and 7 p.m. on Monday through Friday and 8 a.m. and 6:45 p.m. on Saturday. However, bank branches are closed on the second and fourth Saturdays and Sundays and do not accept NEFT. It is advisable to check with your bank as different banks could have different hours. 

No Transactional Limits or Transaction Fees 

There is no minimum or maximum limit on the amount of funds transferable via NEFT. However, a ₹50,000 limit applies per transaction for cash-based remittances within India and for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.  

Starting January 2021, the RBI has removed all charges on online NEFT transactions to promote digital transactions. So banks won’t charge any NEFT charges to transfer from savings account holders. 

How to Transfer Funds Using NEFT? 

NEFT Fund Transfer via Online Method 

• Once you login to your internet banking account or bank's official app, choose 'Fund Transfer' and select 'NEFT' from the options. 

• If the recipient is not already listed, designate them as a beneficiary in your bank account. 

• Enter the beneficiary's name, branch, bank, account type, and account number. 

• Verify the beneficiary details before entering the amount to transfer.  

• Review and hit submit.  

Note: Banks might take anywhere from 15 minutes to 1 hour to activate the added payee before you can transfer the funds. Additionally, banks may impose a restriction on the amount of money you can transfer for the first time to a beneficiary using NEFT. Please check your bank's rules regarding NEFT for these details. 

NEFT Fund Transfer via Bank Branch  

You can also go to your bank branch and fill out a NEFT request form. Fill out the beneficiary's information, including their name, branch name, bank name, account type, and account number. Please specify the amount you intend to transfer. The bank personnel will handle the transaction on your behalf. 

Factors Affecting NEFT Timings 

While the NEFT system aims for efficiency, certain factors can influence the exact timing of your fund transfer: 

Bank Policies 

Different banks might have slightly varying operational timings for processing NEFT transactions. It’s advisable to check with your bank for their specific NEFT cut-off timings. 

Technical Glitches 

Like any digital system, NEFT can occasionally face technical issues that might delay transaction processing. These instances, however, are rare and are typically resolved swiftly. 

RBI NEFT Holidays & Public Holidays 

Although NEFT operates 24x7, settlements might be delayed on public holidays due to reduced banking staff or operational constraints. NEFT transactions follow RBI guidelines, so they do not occur on RBI holidays either. 

List of NEFT Holidays 2024 

Benefits of Using NEFT 

Security 

NEFT transactions are highly secure, with stringent protocols in place to protect your financial data. 

Cost-Effective 

NEFT is a cost-effective method for transferring funds, often incurring minimal or no charges for transactions. 

Convenience 

With 24x7 availability and multiple channels to initiate transfers, NEFT is one of the most convenient ways to manage your funds. 

Frequently Asked Questions 

1. Is there any limit on the amount I can transfer via NEFT? 

No, there is no minimum or maximum limit on the amount you can transfer via NEFT. 

2. How long does an NEFT transfer take? 

NEFT transactions are processed in half-hourly batches. Typically, the funds are transferred within 30 minutes of initiating the transaction. 

3. Can I use NEFT on weekends and holidays? 

Yes, NEFT operates 24x7, including weekends and public holidays, except on RBI holidays or NEFT Holidays.  

4. Are there any charges for NEFT transactions? 

Effective January 2021, RBI has canceled all transaction charges for NEFT transactions for the banks’ savings bank customers.  

5. What details are required to initiate an NEFT transfer? 

You will need the recipient’s name, bank account number, and the IFSC code of the recipient’s bank branch. 

 

 

Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.