To transfer funds from one bank account to another bank account, one must either use NEFT or RTGS transfer. While RTGS transfer happens almost instantly, NEFT transfer takes some time, since the process happens in cycles. There are 11 hourly settlement cycles from 9am to 7pm on week days and 7 hourly settlement cycles on Saturday. For example if someone initiates a NEFT transfer at 2.30pm on a working day, it will be held in queue for the 3pm settlement cycle and if everything is correct, the transfer of funds to the beneficiary will happen then. As soon as that happens, the sender will receive a response indicating successful transfer of funds.
In rare cases where the receiving Bank is unable to deposit the incoming funds to the beneficiary’s account, it will initiate a transfer and the original sender will get back the funds with in 2 hours (3 hours at max).
If the transfer is initiated after 7pm or on a holiday, it will be held in queue until the next settlement cycles arrives on a working day.
Note: Some times it may happen that even though everything is according to rules, the beneficiary may not receive funds in the next settlement cycle or receive them very late. This may happen due to system failure or if there are extremely large number of transfers already in the pipeline that require processing before yours. This will also depend on the time the Beneficiary bank takes to process inward funds. In any case, you can check your transfer status by logging in to your Internet Banking account or by contacting your Branch (if you don’t have Internet Banking facility).