NEFT Timings For Top Banks In India

Disclaimer: Banks usually do not offer fund settlement on the 2nd and 4th Saturdays, Sundays, and bank holidays. However, NEFT holidays and timings are subject to change, so individuals must contact the branch or refer to the online banking section to obtain the latest NEFT cut-off timings.

Cut-Off Timings For NEFT

NEFT is a national payment system used for money transfers between bank accounts. To facilitate this, the NEFT system uses an IFSC code, which is a 11-digit alphanumeric code provided to each branch of a bank that is part of the NEFT network.

NEFT Timings for Online Transfer Services

• Online NEFT transfer services are available 24/7, 365 days a year.
• The process works on the logic of grouping transactions, with clearing happening every 30 minutes throughout the day. For example, if you place a request at 8:05 a.m., the NEFT payment time will be by 8:30 a.m., probably by the next clearing. This holds good for requests made as late as 8:28 a.m., thus reflecting the flexibility in the NEFT Transaction Time.

NEFT Transactions at Bank Branches

• The standard timings for NEFT transactions at physical bank branches is between 8 a.m. and 7 p.m. from Monday to Friday. On Saturdays, the time slot is from 8 a.m. to 6:45 p.m.

Disclaimer: However, specific timings may vary with each bank, so users are advised to contact the respective banks to verify the same.

• It should be noted that NEFT services are not available at the bank on the 2nd and 4th Saturdays of the month and Sundays. So, users have to plan the transactions accordingly.

NEFT Holidays

NEFT transactions are not processed on holidays declared by the RBI. These days are called NEFT holidays. NEFT holidays can be divided into three types - National holidays, festivals, and other events. Here is a list of RBI declared NEFT holidays in 2024.

Note: Further, no NEFT transactions will be processed on 2nd and 4th Saturdays and also Sundays.

Benefits of NEFT

• Facilitates near real-time money transfer within India 24/7, 365 days a year in a secure way
• Users can avail of NEFT transfers via the Internet or online banking free of cost
• Remitters can get a payment confirmation via SMS or email
• NEFT systems can be used for multiple types of transactions like paying salaries, rent, loans, utility bills, shopping bills, EMIs, etc.
• Remitters receive prompt confirmation of successful fund transfers to the beneficiary account. This increases transparency and keeps users informed about their transaction status.
• The provision for penal interest in NEFT imposes penalties for transaction delays, thus promoting adherence to timelines and benefiting both remitters and beneficiaries.
• The Reserve Bank of India (RBI) does not impose charges on banks participating in NEFT. This contributes to cost-effectiveness for both banks and their customers.
• The RBI sets an upper limit on the transaction charges in the NEFT system. This capped fee structure ensures fairness and arrests arbitrary charges, facilitating a standardized approach to transaction costs.
• NEFT extends beyond simple fund transfers, including various transactions such as credit card payments, loan EMIs, and inward foreign exchange remittances. Its versatility makes NEFT a comprehensive solution for multiple financial activities.
• NEFT transactions are backed by a legal framework, ensuring a secure and regulated environment for fund transfers. This legal support instils confidence in users, assuring the system's integrity and offering a way for legal recourse in case of disputes.
• NEFT facilitates fund transfers internationally. This feature helps individuals and businesses engage in cross-border financial activities.

Details Required For Remitting Funds Through NEFT

Following are the essential elements required for remitting funds through NEFT

• Name of the beneficiary
• Account No. of the beneficiary
• The Bank name of the beneficiary’s account
• The Branch name of the beneficiary’s account
• The branch’s IFSC code.

How to Transfer Money Using NEFT?

Step 1: Go to the official portal of the bank.

Step 2: Log into your net banking account.

Step 2: Navigate to ‘Fund transfer’ on the main page

Step 3: Choose 'NEFT' from the drop-down menu

Step 4: Click on 'Add beneficiary'. Choose the 'Add beneficiary' option on the page

Step 5: Enter beneficiary details including the name, bank account number, and IFSC code.

Step 6: Confirm the addition of the new beneficiary

Step 7: Enter the One Time Password (OTP) sent to your registered mobile number

Step 8: Select the beneficiary from the fund transfer section

Step 9: Enter the amount to be transferred

Step 10: Confirm the transaction

Step 10: Click ‘Confirm’ to proceed with the NEFT transfer.

Step 11: The amount transfer from the recipient to the beneficiary account happens.

How To Transfer Money Using NEFT?

Follow the steps below for easy and efficient NEFT Fund transfer

Step 1: Access your internet banking account by logging in with your credentials.

Step 2: Navigate to the ‘Fund transfer’ option found on the main dashboard or navigation menu.

Step 3: Select ‘NEFT’ from the drop-down menu that is displayed on the screen.

Step 4: If the recipient of the funds is not listed as a beneficiary already, then add them as a beneficiary to your bank account.

Step 5: Enter the essential details about the beneficiary including their name, bank account number, and IFSC code.

Step 6: After entering the details, confirm the addition of the new beneficiary.

Step 7: Enter the one-time password (OTP) sent to your registered mobile number to authenticate the transaction.

Step 8: After adding the beneficiary, select the recipient from the beneficiary list.

Step 9: Key in the amount you wish to transfer and confirm the transaction.

Step 10: Click 'Confirm' to finalize the transaction. NEFT transfer of the specified amount will then take place from your bank account to the recipient's account.

How Does The NEFT System Work?

The individual, firm, or corporate that wants to remit funds through NEFT can use the internet/mobile banking facility offered by his or her bank for initiating the funds transfer request. The NEFT System works through the following series of steps.

Step 1: The remitter has to furnish information such as the beneficiary’s name, the branch where the beneficiary has the account, IFSC of the beneficiary bank branch, account type, and account number to add the beneficiary to his internet/mobile banking module.

Step 2: After adding the beneficiary, the remitter can initiate an online NEFT funds transfer by permitting debit to his or her account. Alternatively, he or she can also visit his or her bank, fill in a NEFT application form, and authorize the branch to debit the specified amount.

Step 3: The originating bank sends a message to the NEFT service centre, which is a pooling centre.

Step 4: The pooling centre sends the message to the NEFT Clearing Centre (operated by the RBI) to be processed in the next batch.

Step 5: The Clearing centre classifies the funds transfer transactions and creates accounting entries to get funds from the originating banks and send funds to the destination banks.

Step 6: The messages are then forwarded to the destination banks through the NEFT pooling centre. The destination banks receive the inward remittance messages and pass on the credit to the beneficiary customers’ accounts.

Customer Charges For NEFT Transactions

1. Inward Transactions: Inward transactions refer to the receipt of funds by the destination banks. Destination banks do not charge for crediting funds received from inward transactions to the beneficiary accounts. Thus, the beneficiary does not have to pay any fees on funds received from NEFT transactions.

2. Outward Transactions: RBI stopped imposing processing charges on member banks from July 01 2019 for NEFT transfers. So, member banks are now not burdened with processing fees. Member banks in turn are instructed not to levy any charges on savings bank account holders for NEFT fund transfers initiated online from 01 January 2020. This directive from the RBI aims to promote NEFT as a cost-free option for fund transfers.

3. For other outward transactions, the originating banks may levy charges on its customers. They are as follows:

FAQs On NEFT Timings for Top Banks in India: