If a National Electronic Funds Transfer (NEFT) is not credited to the beneficiary's account within 2 hours of the batch settlement, the beneficiary bank must return the amount to the sender's bank. If the returned funds are not credited to the sender's account within two hours of this delay, the bank is liable to pay penalty interest, calculated at the RBI LAF Repo Rate plus 2%.
Ans: If the NEFT transaction is not credited or returned within two hours after batch settlement, then the bank is liable to pay penal interest to the affected customer at the current RBI LAF Repo Rate plus two percent for the period of delay / till the date of credit or refund, as the case may be, is afforded to the ...
NEFT transactions can be initiated 24x7x365, with no restrictions on timing. NEFT settlements occur in half-hourly batches throughout the day. Transactions are typically completed within 30 minutes to one hour, though first-time transfers may take up to 2 hours.
Typically, if the funds are debited but not credited to the beneficiary's account, the amount is refunded within 1-2 working days. In case of delays, you can lodge a formal complaint with the bank for further investigation.
If the refund is not processed within two hours of the delay, the bank is required to pay penalty interest as per RBI guidelines. The penalty interest is calculated at the RBI's Liquidity Adjustment Facility (LAF) Repo Rate plus 2% until the funds are credited to the sender's account.
Yes, in rare cases, NEFT transactions can take more than 2 hours due to factors like bank processing delays, technical issues, or transactions initiated outside regular banking hours at branches. However, under normal circumstances, NEFT transfers are settled in half-hourly batches and usually processed within 2 hours.
Raise complaint
In the case of NEFT, you can go to your bank's grievance department and provide them with the specifics of the disputed transaction. You may file a complaint under "The Reserve Bank-Integrated Ombudsman Scheme (RB-IOS, 2021)" if your issue is not resolved within 30 days.
If an RTGS transaction is not credited to the beneficiary account, does the remitter get back the money? Yes. If the beneficiary's bank is unable to credit the beneficiary's account for any reason, the former will return the money to the remitting bank within 2 hours.
1. The receiving bank is still processing the money. But some banks are slower than others — they might take up to 1 working day for them to release the money. So your money's safely on its way, but the recipient bank is still processing it.
NEFT Holidays and Cut-off Timings
NEFT cut-off timings for same-day processing (for most banks): Monday to Friday: 8:00 AM – 7:00 PM. Saturdays: 8:00 AM – 1:00 PM (if the bank operates) Transactions initiated after the cut-off or during holidays are processed in the next available batch.
Payments for the same day: The money leaves your account immediately. It's usually available within two hours. For some banks, it can take up to close of business the next working day.
7. Can NEFT be Cancelled? Yes, the sender can cancel NEFT transactions before they are settled. The cancellation request needs to be initiated by the sender's bank, and it can be done either online or by visiting the bank branch.
Reasons for NEFT Failure
Common reasons include: Incorrect Beneficiary Details: Mistakes in the account number, IFSC code, or beneficiary name can cause rejection. Insufficient Account Balance: If the sender's account does not have enough funds, the NEFT transfer will not be processed.
Ans: The remitter and the beneficiary can track status of NEFT transaction by contacting NEFT Customer Facilitation Centre (CFC) of their bank, respectively. Details of NEFT CFCs of banks are available on the websites of the respective banks.
NEFT transfers are usually settled right away or within two hours. You can send money through NEFT 24 hours a day, 7 days a week, even on holidays, for online transactions.
5. Can I reverse a completed NEFT transfer? While reversing a completed NEFT transfer is not impossible, it requires prompt action, cooperation from both banks involved, and potentially legal measures if consent from the recipient cannot be obtained.
However, there is no need to worry in case of a failed transaction. If the amount is not credited to the beneficiary but it is debited from your account, the money will be refunded to your account automatically by the bank. It is suggested that you wait at least two hours after initiating the transfer.
What should I do when my transfer is successful but the beneficiary is not credited? Don't worry when you have been debited but the recipient is yet to receive the money – most of the time, the recipient's bank could be experiencing a downtime resulting in a delay. The only solution is to wait.
If transfers take longer than expected, delays can result from factors such as the timing of the transfer, destination, currencies involved, security checks, or bank holidays. Common causes include: Bank Cut-off Times and Time Zone Difference.
RTGS processes transactions instantly. This makes it the faster option for high-value, time-sensitive transfers. On the other hand, NEFT operates in batches, with transactions processed in half-hourly intervals.
The charges for IMPS transactions may vary among different banks. NEFT is considered reliable and secure for fund transfers. RTGS is considered reliable and secure for fund transfers.
Can I cancel an RTGS transaction once it is initiated? No, once an RTGS transaction is initiated and the funds are debited from your account, it cannot be canceled. Therefore, it is important to verify the details before initiating the transfer.
If you send money after a batch has closed, your transaction will be processed in the next batch. This is why timing is essential. Other delays may arise due to bank holidays or non-business hours. Even though NEFT runs 24/7, some banks may still take longer during these periods.
NEFT Timings in 2026
1. In case the transaction has failed, the amount will get credited back to your account in T+1/T+5 days depending on the Person-to-Person or Person-to-Merchant transaction respectively (T being date of transaction). 2.