Do you need to make payments most often through banking services? Which mode of remittance do you use? What happens if cash payments are unsuitable for the transfer of funds?
The answer is none other than the new fund transfer services introduced by commercial banks as per the guidelines of the Reserve Bank of India. Those services are NEFT, RTGS, EFT, IMPS, etc. Checking NEFT transaction status is quite simple now a days.
A bank, a financial institution, has been an essential part of our daily lives. Banking services are available online. It resolves a lot of chores. One of the online money transfer processes is NEFT.
What is NEFT?
The Reserve Bank of India, the statutory body of India, is a corporate body that regulates and sets the norms of the banking and economic sectors. RBI introduced the mode of online and offline fund transfers free of charge without restraining much time for such transfers, of which none but the facility of NEFT, the acronym of National Electronic Fund Transfer, came under consideration in November 2005.
Also Read: How to get branch name from IFSC Code?
What are the permitted times to make NEFT transactions?
NEFT clearance would take a specified slot of time:
- Monday to Friday: 8 a.m. to 7 p.m.
- Saturday, 8 a.m. to 12 p.m.
How is the NEFT transaction carried out?
National Electronic Fund Transfer is a process for requesting to transfer money in batches. The steps involved in the process are listed below:
Step 1: The remitter has to fill out the NEFT application form with the following details:
*Name of Beneficiary
* Name of Bank’s Branch of Beneficiary
* IFSC of the branch
* Account Type
*Account Number.
* Mobile No. of the remitter
Step 2: The originating bank branch collects the data and sends a message to the NEFY service center.
Step 3: The NEFT service center forwards the message to the clearing center to include the fund in the next clearing batch.
Step 4: The clearing center sorts funds as per destination and prepares account entries to receive the original bank and send them to the beneficiary bank.
Step 5: The beneficiary bank receives an inward remittance message from the clearing center and credits the beneficiary customer’s center.
Facts to know: If NEFT exceeds Rs. 50,000, the remitter will have to provide a PAN card at the time of commencing the transaction.
How do I fill out a NEFT form?
A customer or remitter has to fill out a NEFT form to transfer funds. The following details must be filled in:
- Account Number
- Beneficiary Amount
- Transfer Amount
- Cash Details
- Signature of the remitter
- Mobile Number
- Date of Transaction
The form is free of charge, and it is available in the bank. The remitter has to submit the form along with the cash amount. The cashier returns the customer copy as a receipt reference to the remitter.
Facts to know: The rules and regulations are prescribed for all commercial banks by the Reserve Bank of India as per the Banking Regulation Act, 1949. So the ways and formats for NEFT are the same for all banks, irrespective of their names, like State Bank of India, Canara Bank, HDFC Bank, ICICI Bank, Axis Bank, etc.
How do I check the NEFT status?
To understand the concept of NEFT transaction status, the concept of UTR is of utmost importance.
UTR is a reference number that can be found in bank statements. It is used to check NEFT transaction status in the following ways:
* By call-
√ The customer needs to contact the NEFT Customer Facilitation Centre (CFC) of the bank.
√ Provide details of NEFT transactions like:
- UTR
- Date of Transaction
- Name of Bank
√ Bank authorities share the transaction status.
* By SMS or Lert in E-Mail ID-
In the process, the remitter has to add the beneficiary and provide an email ID and mobile number. As soon as the beneficiary receives the money, a message drops into the message box and an alert message is sent to the email ID.
* Physical bank visit:
After two hours of the transaction’s completion, one can visit the respective bank. Provide the executive transaction details:
- UTR
- Date of transaction
The immediate status is disclosed by the bank executive in response to the request.
How do I know the NEFT sender details?
NEFT sender details are always included in the bank statement, i.e., sender name and the name of the bank and branch. One can easily go through the details and find out the details of the sender and the information to send such a value.
What is the UTR number in NEFT?
UTR is the acronym for Unique Transaction Reference, used for identifying a particular NEFT transaction. It is 16 characters long for NEFT and 22 characters long for RTGS. One can easily identify UTR by its format. It is always displayed in the statements of all banks, like SBI, ICICI, Axis, HDFC Bank, etc.
The UTR number in India is generated by the banks that initiate the transfer. Its first four digits represent the IFSC of that branch. Next is the format, and the rest are the unique codes.
How long does a NEFT transfer take?
A NEFT transaction takes a maximum of 30 minutes to remove the fund. While the beneficiary will receive the fund within 2 hours of the deposit. One can check the status via the different ways mentioned above to ensure the transaction’s progress.
What is IMPS?
IMPS, the abbreviation of Immediate Payment Services, is an instant electronic fund transfer that facilitates interbank transactions through mobile phones, ATMs, and net banking. The transfer of funds is very immediate. It can be done through Internet banking or mobile banking. Various digital banks use IMPS services for transferring funds, and the charges for such transactions vary from bank to bank.
What is faster, IMPS or NEFT?
| Category | NEFT | IMPS |
| Minimum Transfer | Rs. 1 | Rs. 1 |
| Maximum Transfer | No limit | Rs. 2 lakhs. |
| Type of settlement | In batches | One-to-one settlement |
| Speed of settlement | 2 hours ( subject to batch) | Immediate |
| Mode | Online and offline | Only online |
| Time taken | 30 minutes to 72 hours | Instantly |
| Transaction charge | No charge sustain | Charges vary from bank to bank. |
So from the above analysis, it is clear that as per speed and urgency, IMPS is the best option to opt for, but as per cost efficiency and security, NEFT is the better one to opt for.
Whom should one approach for complaints related to NEFT transactions?
The customer can approach the respective bank in the case of a disputed transaction. In case the grievances are not resolved within 30 days. The customer can complain about the same to the Reserve Bank Integrated Ombudsman Scheme.
Conclusion
NEFT is fast, simple, secure, and cost-effective. As a result, it is quite difficult for funding in business operations to make up large amounts of funds at regular intervals, but it is beneficial to maintain small funds too. RBI regularly formulates changes in terms of NEFT and RTGS to provide the best services to the respective customers for the development of the economy.
F&Q
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Can I track my NEFT Transfer status?
Yes, You can track your NEFT transaction status with the help of your UTR number or you can contact to your bank branch.
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How can I track my NEFT UTR number?
You need to login to your internet banking and check the transaction status.
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What happen when NEFT is done but amount not credited?
You need to wait for 30 minutes to 72 hours to get amount credited in the receivers bank account.
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In how many days NEFT get credited?
It usually takes 30 minutes to 72 hours.
