National Electronic Funds Transfer

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The National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of India (RBI) and was initiated in November 2005. The setup was established and maintained by the Institute for Development and Research in Banking Technology. NEFT allows bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis through electronic messages.

Unlike real-time gross settlement, fund transfers through the NEFT system do not occur in real-time. Previously, NEFT settlements occurred in hourly batches, with 23 settlements taking place between 00:30 hrs. to 00:00 hrs. However, from 16 December 2019, there have been 48 half-hourly batches occurring between 00:30 am to 00:00 am every day, irrespective of a holiday or otherwise.

Notably, there are no limits, either minimum or maximum, on the amount of funds that can be transferred using NEFT.

Settlement Timings

  • NEFT transfers are settled in half-hourly batches every day, operating continuously from 00:30 am to 00:00 am throughout the year.


  • Initially, NEFT settled fund transfers in hourly batches. In April 2016, the RBI reduced clearance times to half-hourly batches to expedite transactions.
  • Further enhancing its service, the RBI announced in August 2019 the transition to round-the-clock settlements, effective from 16 December 2019, ensuring continuous processing without interruption.