NEFT (National Electronic Funds Transfer)

The NEFT Service is useful for the seamless transfer of funds from one branch to another without any delay or procedural hassle. The operations and functions of the system are similar to RTGS. We have become active member of NEFT system and introduced a new product called TMB e-Transfer (NEFT).

NEFT is the most suitable mode of payment for small value payments as the charges are cheaper and settlement is faster compared to other modes of payment. RBI has introduced NEFT system mainly to send small value payments at nominal cost. We can send funds from our bank to other bank, which is a part of NEFT network. So far, 89 banks have joined in this system and more than 55225 of their branches are under this network. More banks are expected to join in the days to come.

In NEFT, there are 11 hourly settlements (9 am to 7 pm) for a day. In order to complete the processing cycle on a near real-time basis, RBI has introduced the concept of return within 2 hours of completion of a batch. The payment instructions received by RBI within each settlement batch will be consolidated and distributed to payee's bank after each settlement. Normally, payment transaction messages reach the receiving (beneficiary) bank within 15 to 30 minutes from the batch time. Banks are hard pressed to afford credit to beneficiary accounts immediately or else return the transactions within two hours of completion of the batch settlement.

For e.g.: A payment instruction sent to RBI for 12.00 clock settlement batch, may reach the beneficiary bank by 12.30 P.M. If the beneficiary bank has STP (Straight Through process) facility, the amount will be credited immediately. In case, if the beneficiary bank wants to return the transaction for any reason, they should return the same within 2 PM batch on the same day.

In order to encourage small value payments through NEFT, we have fixed nominal charges only. There is no minimum as well as maximum transfer amount limit. There are no charges for inward payments.