Making money transfers will no longer be time-bound affair as RBI has made National Electronic Funds Transfer (NEFT) transfers available for 24*7 from Monday (December 16). This means now you can digitally transfer money without having to wait for the clock to hit between 8 am and 6:30 pm (earlier, NEFT service timings).
For the unknown, the NEFT is used to electronically transfer fund from one account to another bank account.
As per Livemint, “NEFT transfers have now been divided into half-hourly batches with the settlement of the first batch starting after 12:30 am (after midnight) and the last batch ending at midnight. This NEFT cycle will function round-the-clock.
Since the settlement of the last NEFT payment batch ends at midnight, you might not be able to make a transaction after 11:30 pm till the beginning of the next batch at 12:30 am the next day.
Moreover, RBI has also decided to let people transfer money on all holidays 365 days a year. This move will certainly push digital payments across the country.
Notably, the NEFT transactions done after the banking hours will be automated using ‘Straight Through Processing’ (STP) modes by the banks. This will in some way eclipse Immediate Payment Service (IMPS) transaction facilities that allowed 24×7 fund transfers, however, it had a limit of ₹2 lakh.
As of now, the maximum NEFT limits vary from bank to bank and also depend on the customer category. For example, ICICI Bank allows NEFT transfers up to Rs. 25 lakhs while HDFC Bank has an Rs. 25 lakh limit for online NEFT transactions. SBI has an Rs. 10 lakh limit for retail customers.