Fund transfer via NEFT or National Electronic Funds Transfer is set to get faster. Instead of hourly basis, the fund transfer will happen in batches of 30-minute intervals, said RBI Deputy Governor BP Kanungo. NEFT or National Electronic Funds Transfer is an electronic payment system that allows individuals to transfer funds between banks. This fund transfer system is maintained by the RBI. Fund transfer under NEFT is settled in batches as opposed to the real-time settlement process in RTGS or Real-Time Gross Settlement Systems, which is also an fund transfer system maintained by the RBI.
There is no minimum amount for funds remitted via NEFT. In case of NEFT, currently there are twelve settlements from 8 am to 7 pm. However, the timings that the banks follow may vary depending on the customer timings of the bank branches. Mr Kanungo said NEFT window will remain open for the same time but the more number of settlement batches means that the fund transfer will happen at a quicker pace.
NEFT charges are typically lower for internet banking as compared to carrying out the transaction through bank branches.
With the periodicity of batches changing from hourly interval to half hourly interval, 11 more batches will be introduced, he said. “This will significantly improve the customer service and will increase efficiency of NEFT system,” he added.
Customers having savings or current account are eligible to avail NEFT/ RTGS service. Individuals who do not have a bank account can also deposit cash at the NEFT-enabled branches. However, such cash remittances will be restricted to a particular amount per transaction.