NEFT on Holidays: Understanding Bank Timings

Until 2019, RBI had cut-off timings for online NEFT (National Electronic Funds Transfer) – 8:00 am to 6:30 pm from Monday to Friday and 8:00 am to 12:00 pm on Saturdays. This cut-off time was changed in 2020, with RBI allowing banks to carry out NEFT transactions 24/7, every day of the week. According to the RBI, "Making available NEFT 24x7 is part of the RBI’s vision of empowering every Indian with access to a bouquet of e-payment options." That said, each bank has their own cut-off times for offline NEFT transactions based on their branch timings. For online NEFT transactions, transfers can be carried out 24/7, every day of the week.

The NEFT System Explained

The National Electronic Funds Transfer (NEFT) system is a widely used electronic funds transfer mechanism in India. It allows individuals, companies, and businesses to transfer funds from one bank account to another seamlessly. NEFT operates on a deferred settlement basis, which means that the transactions are settled in batches at specific intervals throughout the day.

But what happens when it's a public holiday? Do banks function as usual, or is there a disruption in services? In this blog post, we will delve into the workings of NEFT on public holidays and help you understand bank timings better.

Please note that these dates may vary every year. The RBI releases the list of NEFT holidays for the next year on the last day of the present year. Transactions will be debited from the payee’s account on the same day, but will be credited to the beneficiary’s account on the next day. 

Transfer Timing for NEFT

To understand the cut-off timing for NEFT, let's take a closer look at how the process works. When you initiate an NEFT transaction through net banking or mobile banking, the funds are credited to the beneficiary's account within a few hours or the same working day.

NEFT service is available on all days of the year, 24 hours a day, 7 days a week. Throughout the day, it is done in batches every 30 minutes. That means batch settlement for NEFT transactions occurs every half an hour. But it may also take up to 2 hours for the beneficiary to receive the amount.

Example:

Imagine you need to send money urgently to a friend. You can rest assured that your NEFT transaction will go through smoothly and the funds will be received within a few hours.

Understanding Bank Timings

Bank timings play a crucial role in determining when your financial transactions will be processed. For Ujjivan Small Finance Bank, you can carry out NEFT transactions via net banking 24/7, every day of the week. 

For offline NEFT transactions via Ujjivan SFB bank branches, here are the timings:

• Monday to Friday: 9:30 AM to 4:00 PM
• Saturday (excluding 2nd and 4th): 9.30 AM to 4PM

NEFT on Holidays and Weekends

When it comes to NEFT transfers, weekends and national holidays are not an obstacle. Contrary to popular belief, online NEFT transactions do work on public holidays! NEFT is available 24x7, 365 days a year. The RBI has made NEFT services available on all days, including weekends and public holidays. While physical branches of banks may be closed on national holidays, online banking services continue to operate smoothly. This means that you can initiate NEFT transactions even on holidays without any interruption, even if it's a Sunday or a national holiday. 

Let's say you need to make your monthly rent payment on a public holiday. With NEFT, you can still complete the transaction without any hassle. Here's how:

1. Log in to your online banking platform or mobile application.
2. Go to the "Fund Transfer" or "Payments" section.
3. Select NEFT as the transfer mode.
4. Enter the beneficiary's bank account details, such as account number and IFSC code.
5. Enter the amount and remarks (if any).
6. Submit the request and confirm the transaction.
7. Your bank will process the transaction during the next available clearing cycle, even if it's a public holiday.

Benefits of NEFT on Holidays

NEFT functioning on public holidays brings several benefits to individuals and businesses alike. Here are a few advantages of NEFT:

• Seamless Fund Transfers: You can transfer funds conveniently without any interruption or delay, even on a public holiday.
• Convenience: You can make transactions from the comfort of your home or office, even when physical branches are closed.
• Emergency Payments: NEFT allows you to make emergency payments or send money to your loved ones in times of need, regardless of whether it's a working day or a holiday.
• Timely Transactions: By initiating your NEFT transaction before the cut-off time, you ensure that the funds are credited within the same working day.
• Easy Expense Management: If you have pending bills or payments due on a public holiday, NEFT allows you to settle them quickly and efficiently.