NEFT fund transfer is to set get faster from July 10

Fund transfer via NEFT or National Electronic Funds Transfer is set to get faster from July 10. NEFT is an electronic fund transfer system that allows individuals to transfer funds between banks.
This fund transfer system is maintained by the Reserve Bank of India. Introduction of additional 11 NEFT settlements from July 10 was announced by RBI on Monday.
Fund transfer under NEFT is settled in batches which means
settlement takes place with all transactions received till the particular
cut-off time. On the other hand, settlement happens on a real-time basis in
RTGS or Real-Time Gross Settlement Systems, which is also an fund transfer
system maintained by the RBI.
After the introduction of 11 additional NEFT settlements, the total number will
increase to 23 at half hourly settlement batches during the day. Currently
there are twelve settlements from 8 am to 7 pm at hourly intervals. The
overall NEFT timings - between 8.00 am and 7.00 pm - will remain the same as
earlier.
If the beneficiary's bank is unable to credit the beneficiary's account for any
reason, the former will return the money to the remitting bank within two hours
of completion of the batch in which the transaction was processed. Once the
amount is received by the remitting bank, it is credited to the remitter's
account by the branch concerned.
The more number of settlement batches means that the fund transfer will happen
at a quicker pace. This will improve the efficiency and add to customer
convenience, the RBI said. However, the timings that the banks follow may vary
depending on the customer timings of the bank branches.
NEFT charges are typically lower for internet banking as compared to carrying
out the transaction through bank branches. There is no minimum amount for funds
remitted via NEFT.
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