What to Do if an NEFT Transaction Fails?

Once you have added the beneficiary for the NEFT transaction, you need to provide your email address so that you can receive all the notifications related to your NEFT transactions. Once the funds get transferred to the receiver's account, you will get an email stating the successful NEFT transaction.

Checking NEFT Status via SMS

When you initiate an NEFT transaction, you need to add the receiver as a beneficiary. To add a beneficiary, you need to enter your name, mobile number, and email address. These details will help you get notifications related to your NEFT transaction status. Once the money gets transferred into the receiver's bank account, you will get an SMS notifying you of the same.

Checking NEFT Status by Visiting the Bank

Generally, NEFT transactions get settled within two hours of initiating the transaction. Although it's easier to check the NEFT status through the above-mentioned ways, there is another option that can help you check your NEFT transaction status. You can visit the bank physically to check NEFT status if neither of the above-mentioned options works.

Checking NEFT Status through Customer Care

You can also check the status of NEFT transaction by contacting the bank’s customer care. 

Can NEFT Transactions Be Unsuccessful?

Although NEFT transactions are generally reliable, there is a possibility that a transfer may fail. This can happen if wrong details, such as the recipient's IFSC code, are provided to the bank, which can prevent the transaction from being processed successfully. 

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. If the transaction status remains unclear after this period, you can contact your bank for assistance. 

Refund Process for Cancelled or Reversed NEFT Transfers

If an NEFT transaction is successfully cancelled or reversed, the refund process typically follows these steps: 

1. Confirmation from the Receiving Bank: The bank receiving the funds will verify the cancellation request before initiating a refund. 

1. Processing Time: Refunds usually take a few days, depending on the banks involved and interbank settlement times. 

1. Notifications and Updates: Banks provide updates via email, SMS, or internet banking notifications regarding the refund status. 

1. Credit Back to Your Account: The refunded amount will be reflected in your bank account once it is processed. This can either be verified through your bank statement or by reaching out to the bank's customer service. 

Common Reasons for NEFT Delays

There are several reasons why an NEFT transaction might be delayed:

1. Bank processing hours: If the transaction is initiated outside NEFT timings, it will be processed in the next available window.
2. Incorrect beneficiary details: Errors in account number or IFSC code can delay or fail the transaction.
3. Technical issues: Server downtime or interbank network issues may affect transaction speed.
4. High transaction volumes: Peak periods (like salary day or festival times) may slow down processing.
5. Public holidays or weekends: Although NEFT is available 24x7 now, delays may still happen due to internal bank reconciliations.

Steps to Take if NEFT Status Shows Pending

If your NEFT transaction status shows "pending," follow these steps:

• Wait for the standard processing time – Most transactions complete within 30 minutes.
• Verify beneficiary details – Double-check account number and IFSC code.
• Check your bank’s confirmation SMS or email – Look for transaction ID or UTR.
• Contact customer care – Use the UTR number to raise a query.
• Visit your bank branch if needed – Especially if it's pending beyond 2 hours.

Bank-wise NEFT Processing Timelines

Even though NEFT is available 24x7, processing may vary slightly by bank. Here’s a general view:

Note: These timelines can vary based on bank workload and network speed.

NEFT Timings

For online transactions, NEFT services are available 24/7 throughout the year. Fund transfers can be initiated at any time using net banking or mobile banking platforms. 

For offline transactions conducted at bank branches, NEFT services follow the working hours of the respective bank. Since these hours may differ, it is recommended that you check with the branch before initiating an NEFT transfer in person. 

Steps to Cancel an NEFT Transfer Online 

Step 1: Log in to Your Banking Portal

Access your bank's internet banking or mobile banking platform. Alternatively, you can visit the nearest branch for assistance. 

Step 2: Locate the Transaction

Go to the section displaying recent transactions or fund transfers and find the NEFT transaction you wish to cancel. 

Step 3: Initiate Cancellation

If online cancellation is available, follow the on-screen instructions to request cancellation. Otherwise, inform a bank representative to proceed with the request. 

Note: The NEFT cancellation process varies by bank. For detailed assistance, contact your respective bank's customer care number.

NEFT Transfer Limits

The Reserve Bank of India does not impose any upper limit on NEFT transactions. However, individual banks may set their own restrictions for security reasons. These limits can vary and might depend on factors such as the bank's policies or the timing of the transfer. 

What is National Electronic Fund Transfer (NEFT)?

National Electronic Fund Transfer, or NEFT, is electronic funds transferring method used widely for making transactions through banks in India. These transactions are generally processed within 30 minutes, but there could be certain cases in which it may take longer for the amount to reflect in the beneficiary's account. There are also cases where the transfer fails entirely. 

Benefits of Using NEFT for Online Transactions

Given below are the reasons which explain why NEFT is considered the preferred method to transfer funds from one bank account to another bank account:

1. There is no minimum as well as maximum funds transfer limit for NEFT.
2. People can transfer funds through NEFT online without the involvement of demand drafts and cheques.
3. Through NEFT, money can be transferred instantly or between one hour and 24 hours.
4. The Reserve Bank of India (RBI) has laid specific guidelines which allow the receiver and sender to stay updated about the fund transfer through email or SMS notifications.

How to Confirm Beneficiary Receipt of NEFT Funds

The sender gets an SMS or email alert from the bank once the beneficiary has received the money. So. It is important for you to need to be alert and keep checking with the beneficiary. If the fund does not get credited, you need to inform your bank, so that they can take up this issue.

NEFT transactions are very fast and can take around 15 minutes and a maximum of two hours. The bank charges Rs.2.50 per Rs.10,000 that is sent through NEFT. In fact, it is very cheaper than transferring money through a demand draft.

Steps to Cancel an NEFT Transfer Offline

If you need to cancel an NEFT transaction after initiating it, you must act quickly. Here's what you should do: 

1. Contact Your Bank Immediately: You can reach out to your bank by visiting your nearest branch or reaching out to your bank's customer service as soon as possible. Provide details such as the transaction reference number, beneficiary details, and your account information. 

1. Submit a Written Request: Most banks require a written request for cancellation. Mention the reason for cancelling the transaction clearly and include all important details. 

1. Provide a Valid Reason: Cancellation is typically allowed in cases of incorrect beneficiary details, duplicate transfers, suspected fraud, or other legitimate concerns. 

1. Act Fast: The chances of putting a stop to your NEFT transaction are much higher if you request cancellation as soon as possible, as NEFT transactions are processed in batches. However, cancellations depend on bank policies and whether the funds have already been credited to the recipient's account. 

NEFT Transaction Charges

For individuals receiving a transfer, there are no charges. Additionally, no NEFT fees apply to transactions initiated online via internet or mobile banking channels. However, if you are initiating the fund transfer, specific fees will apply: 

1. Up to Rs. 10,000: Maximum of Rs. 2.50 (+ GST) 

1. Above Rs. 10,000 and less than Rs. 1 Lakh: Maximum of Rs. 5 (+ GST) 

1. Above Rs. 1 Lakh and less than Rs. 2 Lakh: Maximum of Rs. 15 (+ GST) 

1. Above Rs. 2 Lakh: Maximum of Rs. 25 (+ GST) 

NEFT charges can vary from bank to bank. While some banks charge a flat Rs. 2.50 for transfers up to Rs. 10,000, others may include additional taxes. Depending on your account type, some banks might offer free NEFT transfers within the same bank, adding further convenience. Always check with your bank for specific charges related to your transactions. 

NEFT Transaction Timings and Availability

The timing and operation of NEFT transactions are entirely within the control of the RBI. Before December 2019, the RBI had fixed specific NEFT timings  for  transactions should be performed. Previously, NEFT transactions could be initiated between 8 am to 6.30 pm from Monday to Friday, and 8 am to 12 pm on Saturdays. However, from 2020, NEFT transactions can be initiated 24*7.

Important Conditions for NEFT Transactions

Given below are the categories of people who can transfer money through NEFT:

1. Any individual, company, or corporate having NEFT enabled bank account.
2. The user's bank should be a part of the NEFT network.
3. The user's bank account should have an internet banking facility.
   1. The sender should know the receiver's bank account details and contact details to initiate any NEFT transaction.