Reserve Bank of India has now allowed NEFT or National Electronic Funds Transfer round the clock, 24*7.
This means that consumers can now send money via NEFT anytime of the day.
As of now, NEFT is open from 8AM to 7PM only, that too on working days. But now, there will be no restrictions on the time or day.
24*7 NEFT will be applicable from December this year.
Announcing this development, RBI Governor Shaktikanta Das said, “The Reserve Bank will make available the NEFT system on a 24×7 basis from December this year. This is expected to revolutionise the retail payments system of the country,”
This big decision to allow round the clock NEFT has been made in line with RBI’s Payments Settlement Vision 2019 to 2021, which aimed to make digital transactions more seamless, and more easy.
It is expected that RTGS find transfer mode can also be made available round the clock. While NEFT has no restriction on the value of money transfer, RTGS is done only for high value transactions beyond Rs 2 lakh.
3 Updates About IMPS, NEFT You Should Know
#1: NEFT, RTGS Is Not Free For All
This year, RBI made a major decision to remove charges under NEFT and RTGS mode of transactions. RBI had expected that this removal of NEFT and RTGS charges will be passed on to the consumers by the banks.
But this is not true.
Banks are still charging NEFT and RTGS transactions, albeit, the service charges have been lowered.
In a recent case, wherein a customer was charged for NEFT by Bank of Baroda, the bank said: ‘it has revised its service charges and waived off the processing charges and time varying charges for NEFT transactions as per the RBI circular, with effect from July 1, 2019. The bank will continue to charge for other applicable costs which it incurs on such transactions.’
Note here, that SBI has waived off the NEFT and RTGS charges, along with ICICI Bank and HDFC Bank (they had removed the charge since 2017)
#2: No IMPS Charges For SBI Users
Effective August 1st, India’s largest bank: SBI has removed all charges related to IMPS money transfer. Thus, for SBI users, all three modes of money transfer: NEFT, RTGS and IMPS are free.
However, there is a catch here: Only those money transfers done via online banking is free.
#3: Fund Transfer At Branches Is Chargeable, Even For SBI Users
For SBI users, money transfer done at branches is chargeable. Rs 2.5 plus GST is charged for money transfer upto Rs 10,000.
Rs 5 plus GST for Rs 10,000 to Rs 1,00,000 and Rs 15 to Rs 25 for money transfer beyond Rs 1 lakh.
In case of RTGS, Rs 25 charge is levied for money transfer between Rs 2 lakh to Rs 5 lakh, and then Rs 50 for Rs 5 lakh and beyond.
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