NEFT Money Transfer Update: Here’s Why Service Will Not Be Available For 14 Hours On May 23

The apex bank asked member banks to inform their customers to plan their payment operations accordingly. Earlier on 18th April, a similar technical upgrade for RTGS was processed.

File Photo.

For those looking to initiate funds transfers through National electronic funds transfer (NEFT) service, it is important to bear in mind that the service will not be available for 14 hours on May 23. The Reserve Bank of India (RBI) informed about the NEFT service through a tweet.

"A technical upgrade of NEFT, targeted to enhance the performance and resilience, is scheduled after the close of business of May 22, 2021. Accordingly, NEFT service will not be available from 00:01 hrs to 14:00 hrs on Sunday, May 23, 2021. The RTGS system will continue to be operational as usual during this period," the RBI tweeted.

The apex bank asked member banks to inform their customers to plan their payment operations accordingly. Earlier on 18^th April, a similar technical upgrade for RTGS was processed.

What’s NEFT?

The service of NEFT is available round the clock, but the transfer in case of NEFT happens in batches of half an hour. However, there is no maximum limit on the amount to be transfered through NEFT, but different banks have different limits on the amount that can be transferred.

While processing NEFT, an individual has to mention the IFSC code, the name of the beneficiary, the name and bank account number of the person to whom money needs to be transferred.

Last month, the central bank had proposed to expand RTGS and NEFT facilities to non-bank payment system firms in a phased manner. The objective of the move is to encourage participation of non-banks across payment systems.