NEFT times and fees: transfer money via NEFT 24/7 from December 16; from January 1, it will be free. Here’s all you need to know

0
From December 16, 2019, you can transfer money online using the national electronic funds transfer (NEFT) channel 24/7, that is, any time of the day. and any day of the week. The Reserve Bank of India said earlier in December 2019 that bank customers will be able to transfer funds through NEFT 24 hours a day, including weekends and holidays from December 16.

The central bank has implemented a 24-hour RTGS facility from December 14, 2020.

In addition, in November, the central bank ordered from January 2020 that banks can no longer charge savings account holders for online transactions in the NEFT system.

Also read:
No fees on NEFT money transfer from January 2020

What is NEFT?

NEFT is a nationwide payment system that enables the transfer of funds from one bank account to another. Individuals, businesses and businesses can transfer money from one bank branch to any other bank account held by an individual, business or business in the country.

The beneficiary, that is, the bank account to which the money is to be transferred, will receive the money within two hours.

NEFT transactions can be used for payment of credit cards to card issuing banks, payment of EMI loans, etc.

  • 24/7 NEFT transactions

This will allow the bank’s customers to transfer money 24 hours a day. Previously, the NEFT payment system worked for customers from 8:00 a.m. to 7:00 p.m. on all working days except the 2nd and 4th Saturdays, as banks remain closed. That day.

According to the RBI circular published on December 6, 2019, here is how the NEFT system will work:

  • There will be 48 half-hour batches each day. Payment for the first lot will start after 12:30 a.m. and the last lot will end at 12 a.m.
  • The system will be available every day of the year, including statutory holidays.
  • NEFT transactions after normal bank banking hours should be automated transactions initiated using Straight Through Processing (STP) modes by banks.
  • The existing discipline to credit the beneficiary’s account or return the transaction (within 2 hours of settlement of the respective lot) to the originating bank will continue.
  • Member banks will ensure that a positive confirmation message (N10) is sent for all NEFT credits.
  • All provisions of the NEFT procedural guidelines will also apply to 24/7 NEFT transactions.

(You can read the RBI circular
here.)

  • No fees on online NEFT transactions

The RBI has asked banks not to charge any fees on NEFT transactions made by savings account holders from January 1, 2020. According to the central bank press release, the move is aimed at pushing customers into the accounts. savings to transfer money using electronic modes via NEFT. .

The central bank in its monetary policy review held in July 2019 announced its decision to remove fees levied for NEFT and RTGS transactions. The RBI statement said: “In order to give momentum to the movement of digital funds, it has been decided to remove the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems. Banks will in turn be required to pass these benefits on to their customers.

In July 2019, almost immediately after the RBI said banks should remove fees on NEFT, the State Bank of India announced a waiver of fees on NEFT, RTGS and IMPS.

Share.

Comments are closed.