RBI opens NEFT 24×7: Over 11.40 lakh transactions settled in first 8 hours!

NEFT Timings: Customers of SBI, HDFC Bank, Axis Bank, Punjab National Bank, ICICI or any other commercial lender can do National Electronic Funds Transfer (NEFT) transactions 24×7 from today.

neft timings
NEFT transactions will now be settled in half-yearly batches.

The Reserve Bank of India today operationalised 24×7 NEFT facility from 12.00 am today. In the first eight hours, over 11 lakh NEFT tranactions were settles, the central bank said. In a series of tweets, RBI said: “RBI operationalized NEFT 24×7 basis from today 12:00 am. This ensures availability of anytime electronic funds transfer. RBI now joins an elite club of countries having payment systems which enable round the clock funds transfer and settlement of any value. Between 12:00 am and 8:00 am this morning, NEFT settled over 11.40 lakh transactions. Making available NEFT 24×7 is part of RBI’s vision of empowering every Indian with access to a bouquet of e-payment options.”

Customers of SBI, HDFC Bank, Axis Bank, Punjab National Bank, ICICI Bank or any other commercial lender can now do National Electronic Funds Transfer (NEFT) transactions 24×7 from today. The facility will now be available on any day of the week or month, including holidays. The Reserve Bank of India (RBI) has allowed this facility to be available at all times throughout the year.

For smooth settlement of NEFT transactions, the RBI has decided to provide additional collateralised intra-day liquidity facility. “In order to facilitate smooth settlement of NEFT transactions in the accounts of the member banks maintained with the Reserve Bank in a 24×7 environment, it has been decided to provide an additional collateralised intra-day liquidity facility, to be called Liquidity Support (LS),” RBI informed member banks on Friday last.

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The central bank said that the liquidity support facility will be available for facilitating NEFT settlements, on 24×7 basis.

All major banks including SBI, ICICI Bank, HDFC Bank do not charge anything for online NEFT transactions. The RBI had waived off charges on fund transfer through NEFT in July this year.

On December 6, RBI had said: “It has been decided that the above facility shall be made available from December 16, 2019 with the first settlement taking place after 00:30 hours on December 16, 2019 (i.e. night of December 15, 2019).”

NEFT transfer timings

The settlement of NEFT transfers will now be done round-the-clock in half-hourly batches. The settlement of the first batch will start after 12.30 am and the last at midnight. As the settlement of last NEFT transfer batch will end at midnight, bank customers might not be able to do transfer money via NEFT for an hour between 11.30 pm and 12.30 am. Earlier, NEFT transfers were settled between 8 am to 7 pm. On first and third Saturdays, the settlement was done between 8 am to 1 pm.

“There will be 48 half-hourly batches every day. The settlement of first batch will commence after 00:30 hours and the last batch will end at 00:00 hours. The 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,” RBI had said.

“The existing discipline for crediting beneficiary’s account or returning the transaction (within 2 hours of settlement of the respective batch) to originating bank will continue. Member banks will ensure sending of positive confirmation message (N10) for all NEFT credits. All provisions of NEFT procedural guidelines will be applicable for NEFT 24×7 transactions as well,” it added.

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