From December 16, the National Electronic Funds Transfer (NEFT) system is available on a 24×7 basis. This means that one can now transfer money using this method at any time of the day. Previously, NEFT was available for customers from 8 am to 7 pm on all working days with the exception of second and fourth Saturdays of a month, plus Sundays, excluded. Apart from this, one could not do NEFT transactions on public holidays as well, which will not be the case anymore. Now, one can transfer money on Christmas and New Year now.
Earlier this month, RBI in a notification said, “Availability of National Electronic Funds Transfer (NEFT) System on 24×7 basis”, it has notified that facility shall be made available from December 16, 2019, with the first settlement taking place after 00:30 hours on December 16, 2019 (i.e. night of December 15, 2019).”
Reserve Bank of India (RBI) has directed banks not to charge savings account holders for National Electronic Funds Transfer (NEFT) with effect from January 2020. RBI had already waived NEFT processing charges that it imposed on banks with a directive that they pass on the reduction.
RBI in its circular dated November 8, 2019, said, “To further empower every citizen with an Exceptional (e) Payment Experience, and provide her access to a bouquet of options, the Reserve Bank proposes to mandate banks not to charge savings bank account customers for online transactions in the NEFT system with effect from January 2020. It enables the processing of e-mandates for transactions through UPI. It permits all authorised payment systems and instruments (non-bank PPIs, cards and UPI) for linking with National Electronic Toll Collection (NETC) FASTags. Going forward, this will facilitate the use of FASTags for parking, fuel, etc., payments in an interoperable environment.”
Now, how NEFT will differ from IMPS-
1. NEFT transactions will only be credited to the beneficiary account in batches, while in the case of the Immediate Payment Service (IMPS) system, fund transfer takes place in real-time.
2. From July 1, 2019, RBI waived all charges on fund transfer NEFT systems and asked banks to pass on the benefits to customers from the same day. However, banks charge a certain amount depending on the quantum of money being transferred through the IMPS method.
3. Only online transactions can be done through IMPS, while an NEFT transaction can be done offline by visiting a bank branch. These transactions can also be done by individuals not having a bank account by visiting an NEFT-enabled branch. There is no maximum limit on account to account for NEFT transfers. Those who do not have a bank account can transfer funds through NEFT by giving details such as name, address, telephone number.