The National Electronic Fund Transfer, or NEFT , is one of the most commonly-used ways of transferring money online from one bank account to another. But until now it had a limitation - transfer was not instantaneous.
But that will change from July 10 with the RBI deciding to enhance the payment system and reducing the clearance time. At present, there are 12 settlements between 8am and 7pm on weekdays and six settlements between 8am and 1pm on Saturdays. Now, the RBI has decided to introduce 11 additional settlement batches during the day, taking the total number of half hourly settlement batches during the day to 23.
"The half hourly settlements would speed up the funds transfer process and provide faster credit to the destination accounts," the RBI said in a notification.
The RBI has advised banks to carry out the required changes in their processing system to initiate the NEFT transactions for half hourly settlements. They have also been told to accept and credit the inward NEFT transactions on half hourly basis. Customers will also get a confirmation SMS once the transaction is completed.
The opening and closing batch of the settlements will continue to be at 8.00 am and 7.00 pm respectively.
This will now be reduced from hourly batches to half hourly batches, according to the RBI. Newly-appointed Deputy Governor B.P. Kanungo said that the step will improve customer experience.
According to the RBI, there is no cap on the amount of money that can be transferred. But, individual banks set a limit. State Bank of India, for example, has capped the NEFT transfer amount under retail banking at Rs 10 lakh.
Here's how you can transfer money using NEFT:
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