According to RBI. NEFT or National Electronic Funds Transfer is a nation-wide payment system facilitating one-to-one funds transfer. With the help of this, individuals, firms and corporate can transfer their funds (Money) electronically from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country (India).
How much time it takes for NEFT Transfer?
At average it take about 1 hour for a NEFT transaction to get completed. It can even take two hours or may get processed in 10 minutes depending on the time on initiating transfer.
According to RBI, the transfer can be expected to get completed on the same day which are done between 8 am to 5 pm. For transactions initiated in the last two batches (i.e., in the 6 and 7 pm batch), beneficiaries can expect to get credit in their account either on the same day or on the next working day morning (depending on the type of facility enjoyed by the beneficiary with his bank).
What is Minimum and Maximum amount that can be transferred through NEFT?
Though their is no limitations for transferring money in NEFT. But yes while registering a beneficiary you will be asked to set a limit of transfer to a account. You will not allowed to transfer more amount than the one you set for each transaction. Some bank even keep restrictions on NEFT like HDFC allow only transfer of 10 lac in a day per beneficiary and SBI allow only 5 lac per day per beneficiary A minimum amount of Rs. 1 should be their to initiate a transfer.
How does NEFT works?
As per RBI, NEFT is processed in 5 steps.
Step-1 : An individual or firm or corporate who want to initiate transfer of funds through NEFT has to register a beneficiary with his account. While registration he has to provide the details of the beneficiary (like name, account number, Bank name, Branch IFSC of the beneficiary) and the amount to be transferred or remitted. The registration form will be available at the originating bank branch or at the Internet Banking of your Account. Customers enjoying net banking facility offered by their bankers can also initiate the funds transfer request online any time in NEFT hours. Some banks offer the NEFT facility even through the ATMs. Walk-in customers will, however, have to give their contact details (complete address and telephone number, etc.) to the branch. This will help the branch to refund the money to the customer in case credit could not be afforded to the beneficiary’s bank account or the transaction is rejected / returned for any reason.
Step-2 : When the step 1 is completed. The originating bank branch prepares a message and sends the message to its NEFT service center (NSC) or pooling center.
Step-3 : The NSC then forwards the message to the NEFT Clearing Centre, which is at present operated by National Clearing Cell, Reserve Bank of India, Mumbai. NEFT clearing center then set it to be included for the next available batch.
Step-4 : At Clearing Centre funds transfer are sorted by transactions destination bank-wise and prepares accounting entries to receive funds from the originating banks (known as debit) and give the funds to the destination banks(known as credit). Thereafter, bank-wise remittance messages are forwarded to the destination banks through their centre (NEFT Service Centre).
Step-5 : When the batch time comes the destination banks receive the inward remittance messages from the NEFT Clearing Centre and pass on the fund or say credit to the beneficiary customers’ accounts.
What are NEFT Batch timings?
RBI do 11 NEFT settlement batches everyday, Monday to Saturday. On 2nd and 4th Saturday NEFT holidays are observed.
Batch timings are the timings when your transfer requests are forwarded to beneficiary’s Bank by RBI.
Below are the NEFT timings of Batches.
Monday to Saturday:- 09:00, 10:00, 11:00, 12:00, 13:00, 14:00, 15:00, 16:00, 17:00, 18:00 and 19:00 hrs.
On Sundays and 2nd & 4th Saturdays:- Holiday.
How to transfer money/fund online using NEFT? OR
How to set fund transfer online using NEFT?
To set Online fund transfer you will have to get create a Netbanking account at first. You can go to your bank base branch where you opened your account and ask them for activating Internet banking. When you have your Internet banking in access you will need to carry the following steps.
- Log in to your Internet banking.
- Add beneficiary. See how you can add beneficiary.
- Open Fund transfers/ Third party transfers.
- Select the transaction type i.e. Within same bank, To other bank etc.
- After selecting you will be redirected on next page where you will have to fill following details.
- Beneficiary account from the list you already added.
- Amount to be transferred.
- Account from which fund is to be transferred (in case you have multiple account connected in same Internet Banking ID)
- Remarks of the payments.
- Schedule type : Transfer Now, Schedule for later etc.
After all these steps you will be have to click proceed and you may as to enter the High Security password which you will receive on your registered mobile number.
The password security step may not be asked every-time or may be different for different banks.
Once this step is completed the request of fund transfer will be forwarded to RBI and RBI will pass it in next possible batch time.
Is it is possible to schedule a NEFT transfer in advance for upcoming hours or days?
Yes, NEFT or National Electronic Fund Transfer can be scheduled for later. A option for this will be provided at time of completing final steps of NEFT.
Though the transfer will be depending on availability of funds in your account at the scheduled time.
What are the main conditions required for NEFT?
Originating and destination bank branches should be part of the NEFT network
Beneficiary details such as beneficiary name, account number and account type, name and IFSC of the beneficiary bank branch should be available with the remitter
For net banking customers, some banks provide the facility to automatically pop-up the IFSC once name of the destination bank and branch is highlighted / chosen / indicated / keyed in.
The article is written with full care and no information in our eye is wrong. Though RBI and Banks reserve the right to change any policy at any time. We are morally but not legally liable if you found any of the above service in not found correct.
By:- Gagan Choudhary