What is NEFT & How Much Time Does NEFT Take?

Ever needed to send money but were not sure which method to use? Whether sending money to a friend or managing business transactions, National Electronic Funds Transfer (NEFT) is a safe and reliable way to transfer money. It allows you to move funds between bank accounts across India with ease and high security.

But how fast is it? Does it work on Sundays? And what should you know before making an NEFT transfer? 

Read on to understand everything in depth without any confusion.

What is NEFT?

NEFT is an electronic funds transfer system that allows money transfers between different banks in India. Unlike instant payment systems like IMPS (Immediate Payment Service), NEFT processes transactions in batches at specific time intervals. This means the transfer is not instant but happens within scheduled time slots.

To make an NEFT transfer, you need the recipient’s following details:

• Bank account number
• Bank name
• IFSC (Indian Financial System Code)

As NEFT operates digitally, it eliminates the need for physical cash handling, making transactions safer and more convenient. NEFT is commonly used for:

• Transferring money between personal accounts
• Making business payments
• Paying credit card bills
• Settling utility bills

How Long Does NEFT Take?

An NEFT transaction time depends on when you initiate the transfer. Since NEFT works in batches, your transfer gets processed in the next available cycle.

Generally, NEFT transfers take between 30 minutes to a few hours. The exact time depends on factors like:

• When the transfer is initiated – If you send money just before a batch processing cycle ends, it may take longer.
• The recipient’s bank processing speed – Some banks process transactions faster than others.
• NEFT cut-off times – If you transfer money after your bank’s cut-off time, it might be processed in the next available batch.

Earlier, NEFT was only available during business hours. However, since December 2019, it operates 24/7. This gives you the flexibility to send money anytime, even on weekends and holidays.

Does NEFT Work on Sundays and Bank Holidays?

One of the biggest advantages of NEFT is that it runs 24 hours a day, 7 days a week, including Sundays and bank holidays. However, there is a small catch. 

If you’re transferring money through an NEFT-enabled bank branch, you may face restrictions on weekends or holidays. This is because the bank counters are usually closed on these days.
But if you’re using online or mobile banking, you can send money through NEFT anytime. Your transaction will be processed in the next available batch.

What is NEFT Cut-Off Time?

Although NEFT is available 24/7, some banks have cut-off times for processing transactions, especially for same-day settlements. Most banks set their cut-off time around 6 PM for transactions made through bank branches. If you send money after this time, it may be processed in the next batch on the following day.
For online transactions, there is no NEFT cut-off time since they are processed continuously throughout the day and night. To avoid delays, always check with your bank for their specific NEFT cut-off timing.

Why NEFT is the Safest Method?

Since it is regulated by the Reserve Bank of India (RBI), NEFT is one of the safest ways to transfer money. Every transaction is recorded and banks use encryption to protect sensitive information. It follows strict security protocols given by the RBI.

To ensure security, you can follow the below simple tips:

• Double-check the recipient’s bank details before making a transfer
• Always use a secured internet connection while transferring money online
• Avoid sharing sensitive banking details like OTPs or passwords with anyone

Difference Between NEFT vs. Other Payment Methods

Feature	NEFT	IMPS	RTGS	UPI
Processing Time	30 minutes to a few hours	Instant	Within 30 minutes	Instant
Mode	Online & branch	Online & branch	Online & branch	Mobile apps
Availability	24/7, including holidays	24/7	24/7	24/7
Best For	Medium to large transfers	Urgent small transfers	High-value transactions	Everyday payments

Now that you know what is NEFT, about NEFT processing time and how it works, it is easy to send money to your loved ones or even make payments safely.

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FAQs on NEFT Money Transfer Time

Is NEFT available 24 hours?

Yes, NEFT is available 24/7 with online or mobile banking, even on weekends and public holidays.

Does NEFT work on bank holidays?

Yes, NEFT transactions can be made online on bank holidays. However, transactions made through NEFT-based branch may not be available.

How long does an NEFT transfer take?

NEFT transaction time is usually between 30 minutes to a few hours, depending on when you initiate the transfer.