NEFT Cut-off Time: When can you Perform NEFT Transactions?

NEFT or National Electronics Funds Transfer is basically a fund transfer method using which users can transfer money from one bank account to another. These transfers can be made by any individual who has an account with an NEFT-enabled bank to another such bank account.

To perform an NEFT transaction, a user needs to add the recipient as a beneficiary by entering the IFSC code, name and email address. The IFSC is a 11-digit alphanumeric code allotted to each bank branch which is a part of the NEFT network.

Over the course of time, NEFT has become one of the most widely chosen methods of fund transfer. Here’s why-

  • One of the major benefits is that there is no minimum or maximum NEFT amount transfer limit. Users can transfer as low as Re.1 through NEFT

  • You can transfer money through NEFT online; without the involvement of cheques or demand drafts or without having to visit the bank

  • RBI has laid such guidelines that allows the sender and receiver to stay updated about the fund transfer through notifications via SMS and/or email

  • Funds through NEFT can be transferred between 1 hour and 24 hours

  • Since NEFT transactions are governed by the RBI, there is no doubt on the safety of these transactions

What is the NEFT Cut-off Time?

Until December 2019, RBI had fixed timings during which NEFT transactions could be processed. Any NEFT transaction would be processed only between 8:00 AM and 6:30 PM from Monday to Friday, and 8:00 AM to 12:00 PM on Saturdays.

However, from 2020, NEFT transactions can be performed 24*7. This was done to promote digital transactions and global integration of financial markets. It must be noted that NEFT uses quite a simple mechanism to perform the transfer of funds from one bank account to another. Explained below is the process of how NEFT works.

It must be noted that while the general NEFT cut-off time remains the same, all banks have different NEFT cut-off time. Apart from this, most banks do not offer fund settlement services on 2nd and 4th Saturdays and all Sundays of every month, along with a few listed national holidays.

You can read more about NEFT Transfer Timings here.

List of NEFT Holidays

As per the rules of RBI, NEFT-enabled banks does not provide facilities for NEFT transactions on the following national holidays-

  • 1 April (Annual closing of banks)

  • Good Friday

  • Ramzan Eid

  • Bakra Eid

  • Independence Day

  • Muharram

  • Mahatma Gandhi Jayanti

  • Vijaya Dashmi

  • Christmas

Additional Charges of NEFT Transactions

Until December 2021, NEFT transactions involved the following additional charges as money transfer fee-

Transaction Amount

Fee Amount

Less than or equal to Rs. 10,000

Rs. 2.5

Between Rs. 10,000 and Rs. 1 Lakh

Rs. 5

Between Rs. 1 Lakh and Rs. 2 Lakh

Rs. 15

Equal to or more than Rs. 2 Lakh

Rs. 25

However, from January 2021, RBI has removed all the applicable charges on online NEFT transactions. This initiative was taken to promote digital transactions. RBI stated that with effect from 1 January 2020, no banks shall levy any charges from their savings account holders on online fund transfers done through NEFT (National Electronic Funds Transfer) system.

Amount Transfer Limit on NEFT

One of the major reasons that people choose NEFT to transfer funds from one bank account to another is that RBI levies absolutely no NEFT amount transfer limit. This means that there is no minimum or maximum amount required to make transactions through NEFT.

An individual can transfer as low as Re. 1 through NEFT. There is also no cap on the maximum amount that can be transferred through this mode of funds transfer.

However, it is important to note that while RBI may not have any limitations on NEFT amount transfers, specific banks may have imposed certain restrictions. For instance, Paytm Payments Bank allows its users to transfer Rs. 10 lakh per transaction through NEFT.

Understanding How NEFT Transactions Work

  • As and when a user initiates a transaction through NEFT, it gets queued up

  • NEFT transactions are cleared in batches, every hour

  • NEFT transactions that are initiated after the bank working hours are automatically assumed to be automated transactions initiated using the ‘Straight Through Process’ (STP) modes by the bank

FAQs
What are NEFT transfer timings?
Until December 2019, NEFT transactions could be performed only between 8:00 AM and 6:30 PM from Monday to Friday, and between 8:00 AM and 12:30 PM on Saturdays. NEFT transactions cannot be performed on Sundays. However, starting January 2020, NEFT transactions can be performed at any time, on any day and from anywhere.
Is there any impact of COVID-19 lockdown on NEFT transactions?
No, there is no impact of COVID-19 lockdown on NEFT transactions. All banks have now reinstated their normal working hours and resumed the suspended services, if there were any.
Who can make NEFT transactions?
Any individual, firm or company can carry out NEFT transactions. It is only mandatory that the account holder’s bank account is NEFT-enabled for the transaction to take place.
Can I make a NEFT transaction on the weekend?
Yes, you can initiate a NEFT transaction on the weekend. However, the transaction will be processed only on the next working day.
What is the NEFT transfer limit?
There is no limit on the minimum amount or maximum amount that can be transferred via NEFT. However, if you make NEFT transactions through cash, then the maximum amount that you can transfer is Rs. 50,000.
How much time does it take to settle NEFT transactions?
All NEFT transactions can be settled within 24 hours. The actual time required for the settlement of these transactions, however, may vary from bank to bank.
Are NEFT transactions chargeable?
There were some additional charges on NEFT transactions until December 2019. However, with effect from January 2020, RBI ordered all banks not to charge any additional charges on online transactions made via NEFT.
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