RBI allows 23 NEFT transfers: Things you should know

Mumbai: The Reserve Bank of India on Monday allowed 11 more transactions under National Electronic Funds Transfer scheme. NEFT allows a bank customer to make an online transfer of money either to home bank or non-bank branch.

Real Time Gross Settlement or RTGS is another mode of making an online money transfer that completes the procedure  on real time basis.

At present, RBI has allowed banks to conduct NEFT funds transfers in batches from 8 am to 7 pm. Up till now, banks were allowed to make 12 NEFT transactions in a cut-off day. The limit has now been raised to 23 which will facilitate online transfer of money.

Here are a few things that you should know what additional NEFT batches mean for bank customers.

1) After addition of 11 more NEFT transfers, total number of such transfers in a cut-off day between 8 am to 7 pm has gone up to 23.

2) According to NDTV, there will be no change in timings for making an NEFT payment. The overall NEFT timings - between 8.00 am and 7.00 pm - will remain the same as earlier, the report said.

3) If the beneficiary bank does not receive money, the amount will be returned to the sender bank within two hours of completion of batch. And once the sender bank receives money it transfers it to the account of sender.

4) Now that the central bank has allowed more number of NEFT transfers, the time taken to complete these transactions will come down substantially. "This will improve the efficiency and add to customer convenience," the RBI said.

5) For making a transaction through internet banking facility, NEFT charges are lower as against transaction carried out at bank branches that cost more.