The Complete List of NEFT Holidays

NEFT of National Electronics Fund Transfer is a money transfer method offered by various banks in the country. Regulated by the RBI, NEFT can be used for both, online and offline transactions.

NEFT transactions can be processed only between the banks that offer NEFT-enabled services. Transactions made through NEFT do not take place in real-time; implying that it takes a few days for NEFT transactions to complete. As per RBI guidelines, the payments made via NEFT are processed and settled in batches of half-hour. Also, there is a fee applicable on all NEFT transactions; the amount varies from Rs. 2.5 to Rs. 25, depending on the amount being transferred.

Since NEFT transactions are regulated by the Reserve bank of India, they work as per the guidelines laid down by the RBI. Owing to this, NEFT transactions do not happen on the days when it is a holiday for the RBI. This blog contains a detailed list of NEFT holidays for your convenience.

List of NEFT Holidays 2024

The following table has the complete list of all the NEFT holidays-

It is important to note that the above dates may vary for each year. RBI declares NEFT holidays for the next year on the last day of every current year. Also, any transaction made on any of these NEFT holidays will be debited from the payee’s account on the same day, but will be credited to the beneficiary’s account on the next working day.

NEFT Transaction Timings

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 Charges

NEFT transactions involved the following additional charges as money transfer fee until December 2019-

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.

Consider these Points while Making NEFT Transactions

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
• Within the specified timings for NEFT transactions, a user can only transfer Rs. 50,000 in a day
• 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

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

To Conclude:

NEFT holidays are the same as RBI holidays since NEFT transactions work on the guidelines laid down by the Reserve Bank of India. RBI declares NEFT holidays for the next year on the last day of every current year. Also, any transaction made on any of these NEFT holidays will be debited from the payee’s account on the same day, but will be credited to the beneficiary’s account on the next working day.