NEFT transfer timings for top banks in India in 2023
To globally integrate the financial markets and to enhance online participation, RBI launched the National Electronic Funds Transfer(NEFT) system. The system works digitally and can transfer funds quickly from one account to another. In this article, we will learn more about NEFT transfer and NEFT transfer timing for top banks in India in 2023.
What is NEFT?
NEFT stands for National Electronic Funds Transfer. The fund transfer system was started in November 2005. It is an electronic funds transfer system set up and maintained by the Reserve Bank of India (RBI). NEFT allows bank customers in India for online transferring of funds between any two NEFT-enabled bank accounts on a one-to-one basis. Individuals as well as corporations can use this payment mode to transfer funds electronically from one account to another within the country. For a bank to participate in NEFT transaction activity, it has to be a member of the NEFT network.
Features of NEFT
- NEFT is a one-to-one payment facility.
- From December 2019, NEFT transactions can take place 24*7*365.
- NEFT allows customers to transfer funds between any two NEFT-enabled bank accounts.
- It transfers funds electronically.
- As per the guidelines by RBI, NEFT transactions get settled in batches every half-hour.
- NEFT involves a minimum transaction fee.
- Transactions through NEFT can work from anywhere without any time restrictions.
- NEFT transfers do not have a maximum or minimum limit of fund transfers. Users can transfer as low as Re.1 through NEFT.
Benefits of NEFT
Safe and secure method- Transactions through NEFT are safe and provide the utmost security. The beneficiary’s account needs to be added before making a transaction, and the transaction gets completed only after getting the OTP. Hence it is safe to use.
No need to physically visit the bank- NEFT has eliminated the requirement to physically visit a bank account to transfer payments.. Also, the customers do not need to worry about filling out cheques or demand drafts.
Promotes digitalization- NEFT is done via electronic messages. It takes place online. Hence it promotes the government’s vision of digitalization.
Online transactions– All NEFT transactions occur online; hence, a third party need not be involved.
Economical– NEFT transactions involve a minimal amount of charges. Hence, these are economical for the users.
Faster and feasible- Transactions through NEFT take very little time to complete. NEFT transactions are processed every 30 minutes by the banks. It is more convenient for customers as it is a simple payment facility.
NEFT transfer timings
- NEFT transfer timings define the cut-off time during which an NEFT transaction can take place.
- Until December 2019, NEFT timings as per RBI were as follows-
|Days||NEFT transfer timings|
|Monday to Friday||8:00 am to 6:30 pm|
|Saturday||8:00 am to 12:00 pm|
- As per the revised guidelines of RBI, from December 2019, NEFT transactions can take place on all days of the year, 24 hours a day and all week. It means that transactions through NEFT can take place 24*7*365. This has encouraged digitalization and global integration of financial markets.
- Although NEFT takes place 24 hours a day, it gets processed by the bank branches in batches of every 30 minutes. This means the banks divide the transactions into batches, which they process every 30 minutes, resulting in 48 half-hourly batches daily. The first batch of NEFT transactions is cleared at 12:30 pm, and the last batch gets cleared at midnight.
- For example- If a customer requests a NEFT transaction at 9:00 am, it will be processed by the bank at 12:30 pm, and, if the transaction is placed at 12:15 pm, it will also be processed at 12:30 pm.
- It has to be noted here that this is the general NEFT transfer timings as decided by RBI; different banks may have their own transfer timings.
NEFT transfer timings for Top Banks in India in 2023
|Name of the Bank||NEFT Transfer Timings on Week-Days (Monday-Friday)||NEFT Transfer Timings on Saturday|
|Axis Bank||8:00 am to 4:30 pm||8:00 am to 4:30 pm|
|Bank of Baroda||9:00 am to 6:45 pm||9:00 am to 6:45 pm|
|Citibank||8:00 am to 7 pm||8:00 am to 1 pm|
|HDFC Bank||8:00 am to 6:30 pm||8:00 am to 6:30 pm|
|ICICI Bank||8:00 am to 6:30 pm||8:00 am to 6:30 pm|
|Kotak Mahindra Bank||8:00 am to 6:00 pm||8:00 am to 12:00 pm|
|Punjab National Bank||8:00 am to 7:00 pm||8:00 am to 1:00 pm|
|State Bank of India||8:00 am to 7:00 pm||8:00 am to 1:00 pm|
|Union Bank of India||8:00 am to 6:30 pm||8:00 am to 6:30 pm|
|Yes Bank||8:00 am to 7:00 pm||8:00 am to 1:00 pm|
NEFT transfer holidays
- NEFT transfer holidays define the list of days on which the National Electronic Funds Transfer(NEFT) payment mode will not work.
- According to RBI rules, the following are the national holidays on which NEFT will not work-
- 1 April (Annual closing of banks)
- Good Friday
- Ramzan Eid
- Bakra Eid
- Independence Day
- Mahatma Gandhi Jayanti
- Vijaya Dashmi
Participants in NEFT transactions
- Remitter (the one who transfers funds)
- Beneficiary (the one who receives funds)
Essential details required for NEFT fund transfer
- Beneficiary’s Name
- Beneficiary’s Branch Name
- Beneficiary’s Bank Name
- Beneficiary’s Account Type
- Beneficiary’s Account No.
- Beneficiary’s Branch IFSC
Steps to transfer funds through NEFT
Step1- The Remitter will login to their mobile banking application by entering the required credentials.
Step2- On the home page, click on ‘Fund transfer’. Select NEFT from the drop-down menu.
Step3– Now, you need to add the beneficiary to the list of beneficiaries in your account.
Step4- Enter the required details of the beneficiary such as name, account number, IFSC code, bank branch etc.
Step5- Click on ‘Confirm’ or ‘Add’.
Step6- An OTP will be sent to the remitter’s registered mobile number for authentication.
Step7- It takes around 24 hours for a beneficiary to be added.
Step8- Once the beneficiary is added, the remitter must select the beneficiary added and
enter the amount to be transferred.
Step9- Click ‘Confirm’ to transfer the amount to the receiver’s account.
Step10- Both the remitter and the beneficiary will receive a message of debit and credit of the amount, respectively.
|Transaction Amount||Fee Amount|
|Less than or equal to Rs. 10,000||Rs. 2.5+GST|
|Between Rs. 10,000 and Rs. 1 Lakh||Rs. 5+GST|
|Between Rs. 1 Lakh and Rs. 2 Lakh||Rs. 15+GST|
|More than Rs. 2 Lakh||Rs. 25+GST|
NEFT is National Electronic Funds Transfer. It is a national payment system designed and regulated by RBI, which transfers funds electronically from one NEFT-enabled bank account to another. It uses some basic details of the beneficiary, such as the account number, name, branch name, IFSC code, etc., for fund transfer. Certain minimal charges are specified by the Reserve Bank of India(RBI). Transactions through NEFT take place through simple steps, and the money will be credited to the receiver’s account within some time. The RBI revised transfer timings for NEFT in December 2019, and the transactions can take place 24*7*365. NEFT transactions are speedy and secure. It also encourages the digital participation of the users.
Frequently Asked Questions(FAQs)
- What is IFSC Code?
An IFSC code is an 11-digit alphanumeric code provided to each bank branch.
- What is the limit of fund transfers through NEFT?
There is no maximum or minimum cap fixed for fund transfers through NEFT. The user can transfer as minimal as ₹1 using NEFT mode.
- Is it necessary to add beneficiaries for fund transfers?
Yes, it is crucial to add a beneficiary in the list of beneficiary’s to access the NEFT mode of fund transfer. A beneficiary will be added within 24 hours of fulfilling the required information. Adding a beneficiary is necessary for one to transfer funds through NEFT. The customer can anytime remove the beneficiary if no longer required.
- What is the per transaction limit for NEFT?
There is no transaction limit under NEFT. However, banks put their own limit on the maximum transaction amount they allow through NEFT.
- What will happen if the funds are not credited to the receiver’s account?
If the funds are not credited to the receiver’s account, they will automatically revert to the sender’s account after some time.