Fund transfer via NEFT or National Electronic Funds Transfer is set to get faster from July 10. NEFT is an electronic fund transfer system that allows individuals to transfer funds between banks. This fund transfer system is maintained by the Reserve Bank of India. Introduction of additional 11 NEFT settlements from July 10 was announced by RBI on Monday. Fund transfer under NEFT is settled in batches which means settlement takes place with all transactions received till the particular cut-off time. On the other hand, settlement happens on a real-time basis in RTGS or Real-Time Gross Settlement Systems, which is also an fund transfer system maintained by the RBI.
Here are five things to know about the new NEFT rules that will come into effect from July 10:
After the introduction of 11 additional NEFT settlements, the total number will increase to 23 at half hourly settlement batches during the day. Currently there are twelve settlements from 8 am to 7 pm at hourly intervals.
The overall NEFT timings - between 8.00 am and 7.00 pm - will remain the same as earlier.If the beneficiary's bank is unable to credit the beneficiary's account for any reason, the former will return the money to the remitting bank within two hours of completion of the batch in which the transaction was processed. Once the amount is received by the remitting bank, it is credited to the remitter's account by the branch concerned.
The more number of settlement batches means that the fund transfer will happen at a quicker pace. This will improve the efficiency and add to customer convenience, the RBI said. However, the timings that the banks follow may vary depending on the customer timings of the bank branches.NEFT charges are typically lower for internet banking as compared to carrying out the transaction through bank branches.
There is no minimum amount for funds remitted via NEFT.
