Owing to its multiple benefits, NEFT or National Electronics Fund Transfer has become one of the most widely chosen modes of transferring funds from one bank account to another. The major benefit offered by NEFT is that there is no minimum or maximum limit on the amount to be transferred. Considering this, users tend to transfer higher amounts to another bank account through NEFT.
Now, when you transfer a bigger amount, you tend to be concerned about whether or not it has been transferred to the receiver. To stay assured of this, you can check NEFT status. This will help you figure out whether the transaction has been processed from your end or whether it has been received by the other person.
There are multiple ways in which you can check NEFT status. This blog will talk about the various methods that you can use to check NEFT status.
Ways to Check NEFT Status
There are multiple ways to check NEFT status. Some of those are explained below-
When you initiate a transaction via NEFT, you have to add the receiver as a beneficiary as one of the first steps. To do so, you have to enter your name, email address and mobile number. Providing these details will help you get notified of your transaction status. As soon as the money is credited to the receiver’s bank account, you will receive an SMS notifying you of the same.
After you have added the beneficiary for your NEFT transaction, you are asked to provide your email address. It is important to provide your email address so as to stay notified of all your NEFT transactions. Once the receiver receives the funds that you have transferred to his/her account, you will receive an email stating the successful NEFT transaction.
- Visiting the Bank
Generally, NEFT transactions are settled within two hours of initiating the transaction. You can use any of the above-mentioned ways to check NEFT status. However, if neither of these ways help you with the status of your NEFT transaction, and it has been more than 2 hours that you have processed the transaction, you may choose to visit the bank physically to check NEFT status.
Can NEFT Transactions Fail?
While there are very little chances of an NEFT transaction being unsuccessful, there is still a possibility that your NEFT transaction might fail. For instance, if you provide incorrect IFSC code of the receiver’s bank branch, the NEFT transaction may not complete.
However, you don’t need to worry about an unsuccessful NEFT transaction, irrespective of the reason behind it. If the transaction amount gets deducted from your bank account but does not get credited to the receiver’s account, you will receive the amount back to your account.
It is advised to wait for at least 2 hours after processing an NEFT transaction. You may reach out to your bank if your transaction status is still unknown or unclear after that.
Why use NEFT to do Online Transactions?
Following reasons explain why NEFT is the preferred method for transferring funds from one bank account to another-
- 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 can be transferred through NEFT immediately or between 1 hour and 24 hours
- Since NEFT transactions are governed by the RBI, there is no doubt on the safety of these transactions
When can you Perform NEFT Transactions?
Since all the NEFT transactions are performed under the guidance of RBI, the timings and process of NEFT transactions is all under the RBI’s purview.
Before 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.
NEFT Transactions: Conditions
The following categories of people can transfer funds through NEFT-
- Any individual, corporate, firm, or company having NEFT-enabled bank account
- It is mandatory for the user’s bank to be a part of the NEFT network
- Internet banking should be activated on the user’s account
- To perform any NEFT transaction, it is mandatory for the sender to know of the receiver’s bank account details, contact details and the IFSC code