Transfer money via NEFT 24x7 from Dec 16; from Jan 1 it will be free of cost. Here's all you need to know
NEFT allows individuals, firms, corporates to transfer money from one bank branch account to another one anywhere in the country. Earlier, this facility could be availed only on working days between 8:00 Am and 7:00 PM.
RBI operationalized NEFT 24x7 basis from today 12:00 am. This ensures availability of anytime electronic funds tran… https://t.co/gdIvn78bzS— ReserveBankOfIndia (@RBI) 1576501484000
Added to this, in November, the central bank had directed from January 2020 banks can no longer charge savings bank account holders for online transactions in the NEFT system.
Also Read: No charges on NEFT money transfer from January 2020
What is NEFT?
NEFT is a nation-wide payment system that allows transfer of funds from one bank account to another. Individuals, firms and corporates can transfer the money from one bank branch to any other bank account held by individual, firm or corporate in the country.
The beneficiary, i.e., the bank account in which money has to be transferred will receive the money within two hours.
NEFT transactions can be used for payment of credit card dues to the card issuing banks, payment of loans EMI etc.
- NEFT transactions on 24X7 basis
Between 12:00 am and 8:00 am this morning, NEFT settled over 11.40 lakh transactions. Making available NEFT 24x7 is… https://t.co/0ZravhGFUH— ReserveBankOfIndia (@RBI) 1576501571000
According to RBI's circular issued on December 6, here is how the NEFT system will operate:
- There will be 48 half-hourly batches every day. The settlement of first batch will commence after 00:30 hours and the last batch will end at 00:00 hours.
- The system will be available on all days of the year, including holidays.
- NEFT transactions after usual banking hours of banks are expected to be automated transactions initiated using 'Straight Through Processing (STP)' modes by the banks.
- The existing discipline for crediting beneficiary's account or returning the transaction (within 2 hours of settlement of the respective batch) to originating bank will continue.
- Member banks will ensure sending of positive confirmation message (N10) for all NEFT credits.
- All provisions of NEFT procedural guidelines will be applicable for NEFT 24x7 transactions as well.
(You can read the RBI circular here.)
- No charges on online NEFT transactions
Furthering Digital Payments – Waiver of Charges – National Electronic Funds Transfer (NEFT) System https://t.co/yr0Y4prPNS— ReserveBankOfIndia (@RBI) 1576503175000
The central bank in its monetary policy review held in July 2019 had announced its decision to do away with the charges levied for NEFT and RTGS transactions. RBI's statement said, "In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems. Banks will be required, in turn, to pass these benefits to their customers."
In July, almost immediately after RBI's saying that banks should remove charges on NEFT, State Bank of India announced waiver of charges on NEFT, RTGS and IMPS.