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How Long does it Take to Transfer Money through NEFT (2020)

Transferring funds from one account to another has always been the main concern for both individuals and businesses. Fund’s transfer is one of the important functions in the banking sector.

Earlier payee had to go to the bank to transfer their funds into the receiver's account.

Thanks to the recent technology that has provided us various options to transfer funds without going to the bank.  

Today there are multiple fund transfer options provided by Reserve Bank of India (RBI). Among those NEFT or National Electronic Funds Transfer is one of the flexible online fund’s transfers options.

NEFT Transfer Money

NEFT is an intra-bank online fund transfer facility. RBI introduced this online payment system in 2005. About 63000 banks in India provide NEFT facilities for their customers. RBI manages all the payment transactions done through NEFT.

This same day payment facility is said to be the fastest funds transfer system in India. 

Key Features of NEFT 

As per RBI guidelines, all the customers who have accounts in their respective banks can avail of the NEFT facility. NEFT transactions can be done within India only. Individuals and business bank account holders can avail of this facility.

Even walk-in customers who do not have a bank account can also perform NEFT transfer. Account-holders should check if their bank is connected with the NEFT network before availing of this facility. But today, nearly all banks provide NEFT facilities.

This online payment facility is available for 24 hours and for 365 days. There is no limit on transferring the number of funds through the NEFT facility. An account holder can transfer even a minimum amount or large amount from one account to another through this facility.

But generally, the amount above Rs. 2 Lakhs is transferred using the RTGS facility.

For payments up to Rs. 2 Lakhs NEFT is the best fund transfer facility to prefer. The time taken for this transfer is about 2 hours. In the case of cash-based remittance, there is an upper limit of Rs. 50000 for the NEFT transaction. Cash-based remittance transactions require full details of the payee and receiver.

All the details such as name, address, IFSC code, and other account details are filled in an NEFT form provided by the bank. 

Recent updates on NEFT facility

From 16 December 2019, RBI has offered flexible guidelines for NEFT facilities to customers. Now customers can avail of this facility 24/7. NEFT is an online process that can be performed without going to the bank. RBI has extended NEFT timings. 

Now customers can perform NEFT transactions from 8 am to 6:30 pm from Monday to Friday, and 8 am to 1 pm on Saturdays. From 1 January 2020, RBI has provided zero charges on fund transfer done through NEFT.

So you can perform small or large transactions through NEFT without paying any charges towards the bank. Customers with active internet banking can do NEFT transfer directly from their devices. The only thing is that they have to check with their banks for NEFT timings. 

Procedure for doing Offline NEFT transfer

  • In case of offline transfer, visit the bank where you have an active account. The bank will provide an NEFT form.  
  • Fill the details such as name, address, account number, IFSC code, contact details, and other information. Enter the amount you want to transfer. 
  • Select NEFT option in Funds transfer. An online NEFT form will be displayed. Enter the details of your beneficiary in the online form.

Procedure for doing Online NEFT transfer 

  • In case of online NEFT transfer, log on to your bank’s net banking app or website.
  • First of all, add the beneficiary details in your beneficiary list. Once the beneficiary gets added to the list, proceed further.
  • Select NEFT option in Funds transfer. An online NEFT form will be displayed. Enter the details of your beneficiary in the online form.
  • Enter the amount you want to transfer and then accept the terms and conditions of the transfer.
  • You will get an OTP for the transaction to proceed further. Enter the OTP and confirm your transfer.

NEFT transfer Timing

NEFT transfer is a fast way to transfer your funds into your beneficiary’s account. When you have done the procedure for NEFT transfer, a transaction ID will be generated. Your transaction ID will be in the queue.

Banks have their time slots for performing NEFT transactions. Based on their clearance timing, they will allocate your fund transfer. If you have done the NEFT transfer process in that time slot, your funds will be transferred during the same time slot. 

Banks have their NEFT time slots on an hourly basis. The timing for NEFT transfer is 8 am to 6:00 pm from Monday to Friday, and 8 am to 1 pm on Saturday. Banks provide eight (8) batches of clearance slots in a day.

Once you initiate the NEFT transfer request, the bank will forward your request to the NEFT service center. The NEFT service center will initiate the fund transfer request to the NEFT clearing center.

The amount mentioned will be debited from your account. So generally, it will take about 1 to 2 hours to initiate your NEFT transaction. 

If you do an online NEFT transaction on Sunday or a bank holiday, the bank will process your transaction for the next day's time slot. You will even get a notification from the bank regarding any delay in processing the NEFT transactions.

Due to recent Digital India promotion campaigns, banks have provided the NEFT facility for customers for all days.  Straight Through Processing or STP is the mode used by banks for doing 24/7 NEFT transactions. So banks are providing seamless NEFT 24/7 facility for their customers. 

Advantages of doing an NEFT Transaction

  • NEFT facility is one of the most flexible funds transfer services provided by banks. Performing an NEFT transaction at a bank and online takes only a few steps to complete it.
  • The time required to complete an NEFT transaction is comparatively less. The processing time is also considerably low as compared to other fund transfer facilities.
  • Both small and large payments can be done using the NEFT facility. It is better to choose the NEFT facility for transactions up to Rs. 10 Lakhs.
  • The payment notification services provided by the NEFT facility are just appreciating. Both receiver and sender will get notifications of payment made through NEFT.
  • NEFT payment transactions are done in real-time. So they are one of the safest modes of online intra-bank transactions.
  • Everyone can avail of the NEFT facility. Right from individuals to businesses, any person or company can use NEFT for their funds’ transfer.
  • It is not compulsory to visit the bank to do an NEFT transaction. It can be done online hassle-free. Beneficiaries do not need to visit the bank to avail of payment through NEFT facility.
  • Customers can do NEFT transactions for free. There are no charges on any amount to be transferred through the NEFT facility.

Customers often face some issues or doubts while performing their first NEFT transactions. It is because they are generally not aware of the NEFT transaction process. So let’s know about such issues and questions which can arise while performing the first NEFT transaction. 

  • If the transaction is incomplete
  • There are various reasons which can be responsible for an incomplete NEFT transaction. For instance, if any customer has insufficient funds in their account and performs an NEFT transaction of exceeding amount, the process could not be completed by the bank.
  • f the payer has entered incorrect details of the beneficiary in the NEFT form, the bank will not process the transaction further. Always verify the details of the beneficiary entered in NEFT form and then submit the form.
  • In case of an online transaction, if the transaction is not completed contact the customer service. Internet banking authorities of the bank provide online customer service.
  • You can always contact the bank IT service team if you are unable to complete the NEFT transaction online.
  • No information regarding debit and credit of amount transferred through NEFT
  • Banks generally provide SMS alert services when you perform NEFT transactions. So when you submit the NEFT form, you will get SMS regarding the amount debited from your account. The beneficiary will also get an SMS of the credited amount on their account.
  • But in case of no SMS from the bank, you can immediately get bank authorities’ help. Contact the authorities and inform them about the concern.
  • NEFT transaction is not done on the same day
  • Sometimes NEFT transactions are not processed on the same day. It is because you may have done the NEFT process in the last time slot of the day. Your transaction will be queued for the next day’s slot.
  • In other cases, NEFT transactions may not be processed the same day because of the technical errors from the bank or NEFT service or clearing center. Sometimes the NEFT clearing center does not issue payments on time. NEFT service center may also face some server issues. It is necessary to keep in touch with the bank authorities to initiate your NEFT transaction further. 

Hence NEFT facility helps a lot in case of performing a quick transfer of funds from one bank account to another. 


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About the Author

Piyush Kashyap is a Ph.D student at Sant Longowal Institute of Engineering and Technology, Sangrur. He is a budding editor/ writer and has been working as a part-time reviewer for online content. He loves to read tech-based articles and has a knack for reviewing such articles He likes to stay updated about the latest trends in technology. He has also been working as a reviewer for many scientific journals. He also writes articles based on science. Know More About Piyush

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