NEFT Transfer and Settlement Timings

NEFT, or National Electronic Funds Transfer,  is a simple and fast way to transfer money from one bank account to another. It allows smooth transfer of money between two accounts in the same or different banks. NEFT transactions help businesses and individuals to smoothly carry out their transactions without involving any cheques or demand drafts. The time taken for NEFT transfer is a bare minimum, making it a widely popular way of money transfer in India. 

Before we discuss more on NEFT transfer times, it is essential to understand its functioning. NEFT is a countrywide centralised payment system set up by the RBI and started in November 2005. The secured NEFT system, which connects all the participating banks, facilitates electronic money transfers. NEFT transactions in India can be carried out by visiting a bank branch or using digital banking services.   

NEFT Transfer Time Details 

Online NEFT requests can be submitted 24 hours a day, 7 days a week and 365 days a year. While offline, NEFT requests can be submitted by physically visiting a bank’s branch during its working hours. However, on the 2nd/4th Saturdays, public holidays and bank holidays, only online NEFT facilities are available as the bank branches remain shut.  

These transactions are conducted in batches every 30 minutes. This system of processing transactions in batches was introduced by RBI in 2020 in an attempt to push digitisation of banking services in India. 

NEFT Timings on Weekdays

NEFT transfer time from Monday to Friday depends on the working hours of the bank. NEFT requests can only be submitted via branch visits during the bank timings. Customers should approach their nearest branch in order to gain complete clarity about its NEFT amount transfer time. 

For digital payments, NEFT facilities can be used at any point of time from anywhere. 

NEFT Timings on Saturdays

NEFT Transactions on weekends are only available on working Saturdays. This implies that customers willing to electronically transfer funds can do so only on 1st, 3rd or 4th Saturdays. No NEFT payments can be made via branch visits on the 2nd and 4th Saturdays, as the banks remain closed.

Digital NEFT transactions, however, can be carried out on 2nd and 4th Saturdays to allow seamless exchange of money even on non-working Saturdays. 

NEFT Timings on Sundays and Bank holidays

Offline transactions cannot be carried out on Sunday as the banks remain closed. While online NEFT transfers can be easily made on Sundays through the bank’s Internet banking and mobile banking services. The same applies to bank holidays as well. 

Cut-off Time for Initiating NEFT Transfers

Cut-off time refers to the specific time by which an NEFT transaction must be initiated for it to be successfully taken up by the bank on that day or in the next batch. Until 2019, the Reserve Bank of India (RBI) had set particular timings. NEFT transactions were to be processed between 8:00 am to 6:30 pm on weekdays and 8:00 am to 12:00 pm on working Saturdays.

However, the central bank revamped these timings to make NEFT transfers available 24/7. A specific “cut-off” time isn’t applicable anymore, as the transactions are simply queued and processed all day long in batches. 

NEFT Transaction Time for Top Banks in India

Bank	Online NEFT Transfer Time	Offline NEFT Transfer Time	Maximum Amount Limit
State Bank of India	24×7	8 am to 7 pm	₹ 10 lakh
Axis Bank	24×7	7 am to 7 pm	No Limit
Canara Bank	24×7	8 am to 7 pm	No Limit
Union Bank of India	24×7	8 am to 6:30 pm	No Limit
Kotak Mahindra Bank	24×7	8 am to 7 pm	As specified by the bank
ICICI Bank	24×7	8 am to 6:30 pm	₹10 lakh
Yes Bank	24×7	8 am to 7 pm	As specified by the bank
IDFC First Bank	24×7	8.00 AM to 6.50 PM	₹20 lakh
Punjab National Bank	24×7	8 am- 7 pm on Weekdays 8 am-1 pm on Saturdays	₹ 500 lakh
IndusInd Bank	24×7	As per the bank’s working hours	As specified by the bank
HDFC Bank	24×7	As per the bank’s working hours	₹ 50 lakh
Bank of Baroda	24×7	9 am to 6:45 pm	As specified by the bank
Indian Bank	24×7	8 am to 7 pm	No Limits

Time Taken for NEFT Transfer to Be Processed

NEFT transactions are only possible between two NEFT-linked bank accounts. Non-linked accounts cannot facilitate NEFT exchange. As soon as a request is initiated, it gets queued up and is cleared in batches. 

If an NEFT request is initiated after banking hours, then it is cleared via the Straight Through Process (STP). Generally, an NEFT transfer takes 2 hours to be credited to a beneficiaries account. 

Factors Affecting NEFT Transfer Time

The time taken for NEFT transfers depends on a number of factors. Take a look at them and how they impact these payments.

Bank Holidays

Customers should ensure opting for online NEFT transactions on bank holidays. Since the bank remains shut, NEFT transfers cannot be made by; physically visiting the branch.

Technical Glitches

Poor internet connection, incompatible devices and other such technical shortcomings can increase the NEFT transfer time. This leads to delays in payments to the beneficiary.

Incorrect Details 

Entering incorrect account details can hinder payments or increase the time taken for NEFT transfer. While making a payment, a sender should keep all the necessary beneficiary details handy to avoid any delays. 

Preparing for NEFT Transfer

The following details of the beneficiary’s account are required to successfully lodge an NEFT request. 

• Beneficiary name
• Account number
• Bank name
• Branch name
• IFSC code
• Total amount to be transferred

Advantages of NEFT Transfer

Transferring funds through NEFT offers the following advantages to a sender:

• Less Time Consuming: NEFT is especially suitable for heavy amounts, where funds are quickly transferred within hours.
• Paperless Payments: Since funds are electronically transferred, NEFT acts as a better alternative to cheques, demand drafts and hard cash.
• Easily Accessible: As NEFT transfers are available online as well as offline, senders can send money at their convenience. 
• No Time Limit: Online NEFT payments can be made 24 hours a day, 7 days a week and 365 days a year. 
• No Limits on Transfer: Several banks apply no maximum limit on NEFT transfers. This helps customers transfer a high amount without any penalties.
• Safe and Secure: These transactions are regulated by the Reserve Bank of India. Therefore, it’s a reliable and secure way of money transfer. 

Disadvantages of NEFT Transfer

Although NEFT payments are highly beneficial, here are some of its minor drawbacks:

• Bank Charges: Although online NEFT transactions are free of any charges, banks charge between ₹2-₹25 along with GST charges. 
• Limited to Domestic Payments: Except for Nepal, NEFT facilities can be used to transfer funds within India only.
• No Real-time Payment: Unlike RTGS payments, NEFT transactions are settled in batches. Therefore, no real-time settlement is possible. 

How to Submit an NEFT Request 

Submitting an NEFT request, whether by branch visit or online, is a simple process. Take a look at them in detail below.

By Branch Visit

Upon visiting the bank branch, a customer is required to fill out the NEFT application form and submit it to the bank representative. The form requires details of the beneficiary’s bank account and authorises the sender’s bank to debit their account with the concerned amount and make the payment. 

Using Digital Banking

Log on to your bank’s website/ mobile app and follow these simple steps:

• Log in using your Internet Banking credentials.
• Find the ‘Fund Transfer’ option.
• Select NEFT.
• Add the receiver as a ‘beneficiary’ in the list of beneficiaries if not already added.
• Enter the beneficiary’s bank details.
• Add the desired amount to be transferred and proceed.

Conclusion

National Electronic Funds Transfer (NEFT) offers multiple advantages. Not only does it offer paperless monetary transactions, but it also provides comfort and convenience. Today, NEFT payments are an integral part of India’s digital banking framework, facilitating quick and hassle-free transactions.