NEFT is a popular fund transfer system that can be used by an individual to make the transfer of money from any bank and any branch of that bank, to another bank’s branch within the country. Many people tend to overlook the need to use and understand such payments methods, citing that they happen to be too complex for them. However, there is no such case with NEFT. It is a very simple procedure and entails the least amount of formalities. Moreover, there are abundant benefits that one can reap by using NEFT for fund transfer. Take a look at some of them:
- There is no need to stand in long queues to withdraw cash from an ATM or else to deposit the same in someone else’s account. The amount can be transferred in a very few simple steps.
- The process of fund transfer takes place much faster through NEFT as the entire process takes place digitally, without the use of any paper. Therefore, there are no money instruments involved in the process or manual errors that could delay the process of fund transfer.
- NEFT is a very convenient method of handling fund transfer requests as it can be initiated from any place, whether you are at home or the office. All it requires is an internet connection, which is not very hard to find.
What are the charges associated with NEFT payments?
Like every service, even NEFT entails a service charge, which is quite meagre but has to be paid nevertheless. The Reserve Bank of India (RBI) has directed all the banks to not levy any charges on NEFT transactions initiated online via internet banking and/or mobile banking. However, NEFT initiated at the bank branch is charged with a nominal amount. Following is the structure of such charges:
- Amounts up to INR 10,000 – INR 5 (exclusive of taxes) per transaction
- Amounts from INR10,001 to Rs.1 lakh – INR 5 (exclusive of taxes) per transaction
- Amounts above INR 1 lakh up to INR 2 lakh – INR15 (exclusive of taxes) per transaction
- Amounts above INR 2 lakh – INR25 (exclusive of taxes) per transaction
What are the transaction timings applicable to NEFT transactions?
NEFT transactions are now available on a round-the-clock basis i.e. 24×7 for 365 days. This change has been made by the RBI to promote digital payments. The settlement of funds to the beneficiary will be done as per RBI batches. Also, NEFT transactions after usual banking hours of banks are expected to be automated transactions initiated using ‘Straight Through Processing (STP)’ modes by the banks.
NEFT Timings in HDFC Post COVID-19 Lockdown
In August, HDFC Bank reinstated its normal operating hours i.e. 9:30 AM to 3:30 PM from Monday to Saturday (except 2nd and 4th Saturdays). Also, non-essential services such as passbook updating and new account opening, which were initially suspended have been resumed at the bank.
National Electronic Fund Transfer (NEFT) will be available on a round-the-clock basis i.e. 24×7, 365 days. However, the bank is encouraging its customers to transfer funds using the NEFT system via HDFC Net-banking or HDFC Mobile Banking online. They should avoid visiting the branch unless it’s necessary.
What are the special provisions regarding NEFT timings at HDFC?
To make the process of NEFT seamless and less cumbersome for customers, HDFC bank has laid down strict regulations regarding the operations of NEFT. Owing to these orders, no discrepancy is likely to arise in the matter of NEFT fund transfers between any account and ready-made solutions to most customer problems can also be obtained without any delay. Take a look at some of these vital provisions:
- There will be 48 half-hourly batches every day. The settlement of the first batch will commence after 00:30 hours and the last batch will end at 00:00 hours.
- NEFT system will be available on all days of the year, including holidays.
- NEFT transactions after usual banking hours of banks are expected to be automated transactions initiated using ‘Straight Through Processing (STP)’ modes by the banks.
- The fund transfer shall reach the payee bank within the time limit set by RBI.
- A dedicated SMS service by HDFC can be used by a customer to enquire about the status of his NEFT fund transfer request or else can also be accessed online.
RBI decided to allow NEFT transactions on a round-the-clock basis to support the rising popularity of digital payment systems in India. NEFT transactions after usual banking hours are expected to be automated transactions initiated using ‘straight-through processing (STP)’ modes by the banks. As usual, the fund transfer will be settled within 2 hours after making the NEFT transaction. Besides that, the charges on NEFT transfers initiated online have also been removed for the benefit of the customers.