NEFT Timings for Top Banks in India

NEFT is a national payment system used to transfer money from one bank account to another. This is achieved by using an IFSC code which is an 11-digit alphanumeric code provided to each branch of a bank that is part of the NEFT network.

1. Online NEFT Transfer: Online NEFT transfer services have evolved to offer continuous availability, operating 24/7, 365 days a year. The process involves grouping transactions, with clearing occurring every 30 minutes throughout the day. For instance, if a request is submitted at 10:07 a.m., the transfer is expected to be processed by the next clearing at 10:30 a.m. This flexibility extends to requests made as late as 10:27 a.m., ensuring timely completion.
2. NEFT Transactions at Bank Branches: Weekdays: NEFT transactions at physical bank branches are generally facilitated between 8 a.m. and 7 p.m. from Monday to Friday. This timeframe caters to the standard working hours on weekdays. On Saturdays, the available time for NEFT transactions is typically from 8 a.m. to 6:45 p.m. However, it's crucial to acknowledge that specific timings may vary among individual banks, so users are advised to verify with their respective banks. Notably, NEFT services are not available at the bank on the 2nd and 4th Saturdays of the month and on Sundays. This implies a temporary suspension of NEFT transactions on these specific days, underscoring the need for users to plan transactions accordingly.

NEFT Timings on Weekends and Bank Holidays

Since December 16, 2019, NEFT has been available 24x7, including on Saturdays, Sundays, and bank holidays. However, settlement may be slower during public holidays or system maintenance windows. Always check your bank’s operational timings.  

What is NEFT and How it Works?

The National Electronic Funds Transfer (NEFT) system plays a pivotal role in facilitating secure and efficient money transfers across banks in India.  NEFT offers flexibility in fund transfers through various modes, including net banking, mobile banking, or in-person visits to the bank branch, catering to the diverse preferences of bank customers. Transactions through NEFT operate within the business hours of bank branches, with a notable exception of Sundays and bank holidays. Transactions initiated after the cut-off times are promptly debited but processed on the subsequent working days. The Reserve Bank of India (RBI) has significantly enhanced processing efficiency by introducing additional batches at 30-minute intervals, reducing the settlement time from the previous 1-2 hours. It is important to note that most banks do not provide fund settlement options on specific days, including the 2nd and 4th Saturday of the month, Sundays, and bank holidays.

To engage in NEFT transactions, both the sender's and recipient's banks must be NEFT-enabled, requiring enrollment in the RBI-facilitated transfer network. This ensures seamless communication and compatibility between participating banks, allowing for the smooth execution of NEFT as the preferred fund transfer mechanism. Whether opting for a physical visit to the bank branch or leveraging the convenience of Internet and mobile banking services, customers can confidently use the NEFT system for secure and efficient fund transfers in India.

NEFT Holidays

NEFT operations are scheduled on all RTGS working days, and banks actively engaged in NEFT transactions are obligated to participate on each of these working days. Bank holidays encompass various events, including the annual closing of banks on 1 April, RTGS holidays observed on the second and fourth Saturdays of every month, and instances of bank strikes. These occasions contribute to the scheduling of non-working days within the banking sector.

The days in 2024 when such transactions would not take place are listed below.

Note: In addition to this days, no NEFT transactions are carried out on 2nd and 4th Saturdays as well as Sundays.

How to Transfer Money Using NEFT?

By following the detailed steps given below, you can successfully navigate the NEFT money transfer process through your Internet banking account:  

Step 1: Log in to your Internet banking account: Open your Internet browser and log in to your bank's Net banking portal using your credentials.

Step 2: Navigate to 'Fund transfer': Once logged in, locate and click on the 'Fund transfer' option, typically found on the main dashboard or navigation menu.

Step 3: Select 'NEFT' from the drop-down menu: In the fund transfer section, choose the 'NEFT' option from the available modes of transfer.

Step 4: Add beneficiary: If the person you want to transfer money to is not listed as a beneficiary, you will need to add their details to your account. Click on 'Add beneficiary'. Select the 'Add beneficiary' option on the page, initiating the process of adding a new recipient.

Step 5: Enter beneficiary details: Fill in the required information for the beneficiary, including their name, bank account number, and IFSC code.

Step 6: Confirm or add the new beneficiary: Once the details are entered, confirm the addition of the new beneficiary.

Step 7: Authenticate with OTP: To ensure the security of the transaction, enter the One-Time Password (OTP) sent to your registered mobile number.

Step 8: Select the beneficiary for the transfer: After the beneficiary is added, go back to the fund transfer section and choose the recipient from your list of beneficiaries.

Step 9: Enter transfer details: Input the amount you wish to transfer and confirm the transaction.

Step 10: Click on 'Confirm' to finalize the transaction. The specified amount will then be transferred from your bank account to the recipient's account.

How to Pay Credit Card Bill Using NEFT

To pay your credit card bill using NEFT (National Electronic Funds Transfer), you can follow these steps. Keep in mind that the specific details may vary depending on your bank, so it is advisable to check with your bank for any specific instructions.

Step 1: Visit your bank's official website. Log in to your Net banking account using your credentials.

Step 2: Navigate to the ‘Fund Transfer’ or ‘Payments’ section on your Internet banking dashboard.

Step 3: Add your credit card as a payee. This may involve providing details such as the payee's name, account number, and IFSC code. You can find these details on your credit card statement or by contacting your credit card issuer.

Step 4: Choose the NEFT option and select the payee (your credit card) to which you want to transfer funds.

Step 5: Enter the amount you wish to pay and other necessary transaction details.

Step 6: Review the details entered to ensure accuracy.

Step 7: Confirm the transaction. Generate and Note the Transaction Reference Number: After confirming the transaction, the system will generate a Transaction Reference Number. Note down this number for future reference.

Step 8: NEFT transactions may take some time to process. Check your credit card statement after a day or two to ensure the payment reflects.

Benefits of NEFT

NEFT provides numerous benefits for funds transfer or receipt:

1. Round-the-clock Availability: NEFT operates 24x7, allowing individuals, firms, and corporations to conduct transactions on any day of the year. This non-stop availability is particularly advantageous for those with time-sensitive financial needs or urgent fund transfers.
2. Near-Real-Time Transactions: NEFT facilitates near-real-time funds transfer, ensuring that the recipient receives the funds swiftly and securely. The efficiency of near-real-time transactions reduces the waiting period for both remitters and beneficiaries.
3. Pan-India Coverage: The extensive network of NEFT spans across various banks, providing Pan-India coverage. This comprehensive reach ensures that individuals and businesses can transfer funds to any part of the country, regardless of the geographical location of the banks involved.
4. Convenient Online Initiatives: NEFT offers the convenience of online initiation, allowing remitters to initiate transactions from the comfort of their homes or workplaces. Internet banking services play a crucial role in enhancing the ease with which users can manage their funds.
5. Confirmation via SMS/Email: Remitters receive positive confirmation of the successful credit to the beneficiary account through SMS or email. This confirmation mechanism adds an extra layer of transparency and assurance, keeping users informed about the status of their transactions.
6. Penal Interest Provision: NEFT includes provisions for penal interest in cases of delays in crediting or returning transactions. This feature ensures accountability and encourages banks to adhere to the stipulated timelines, benefiting both remitters and beneficiaries.
7. No Charges by RBI: The Reserve Bank of India (RBI) does not levy charges on banks participating in NEFT. This absence of charges from the central banking authority contributes to cost-effectiveness for both banks and their customers.
8. Capped Transaction Charges: Transaction charges in the NEFT system are capped by the RBI, providing clarity on the cost structure. This capped fee structure ensures fairness and prevents arbitrary charges, promoting a standardized approach to transaction costs.
9. Diverse Transaction Capabilities: NEFT extends beyond the simple transfer of funds, accommodating various transactions such as credit card payments, loan EMIs, and inward foreign exchange remittances. This versatility makes NEFT a comprehensive solution for a wide range of financial activities.
10. Legal Backing: NEFT transactions have legal backing, providing a secure and regulated environment for fund transfers. The legal framework ensures that participants can trust the integrity of the system and seek legal recourse in case of disputes.
11. International Transfers: NEFT facilitates one-way funds transfers from India to Nepal, providing an avenue for international transactions. This feature expands the utility of NEFT for individuals and businesses engaged in cross-border financial activities.

NEFT Charges

The customer charges levied by banks for NEFT transactions are discussed below:

1. Inward Transactions: In the context of NEFT transactions, ‘inward transactions’ refer to the receipt of funds at the destination bank. No charges are imposed on these transactions when they lead to the crediting of beneficiary accounts. This means that when someone receives money through NEFT, there are no fees associated with the transaction at the destination bank.
2. Outward Transactions (since 01 July 2019): Starting from July 2019, the Reserve Bank of India (RBI) ceased the imposition of processing charges on member banks for outward transactions conducted through the NEFT system. This indicates that member banks are not burdened with processing fees when initiating outward NEFT transactions, contributing to a cost-free process for certain transactions.

1. Online NEFT Funds Transfers (since 01 January 2020): As part of the broader initiative to encourage digital retail payments, banks are specifically instructed not to levy any charges on savings bank account holders for NEFT funds transfers initiated online. This directive, effective from January 2020, aims to promote the use of online channels for NEFT transactions, making it a cost-free option for users.
2. Maximum Charges for Other Outward Transactions (if applicable): For transactions beyond the realms of the aforementioned categories, the originating bank may levy charges on its customers. The maximum charges are outlined as follows: