Posted on Apr 22, 2025
Banking transactions such as the National Electronic Funds Transfer (NEFT) happen daily across India. While that shows the growing mobility of money, there's always the scope for mistakes, which can annoy you as a customer. Mistakes can be mentioning incorrect details such as the wrong account number. Such mistakes can lead to delays or transfers to the wrong bank account, piling concerns for you. Upon committing a mistake, you would like to know the NEFT cancellation process. In this blog, we will share the situations where you can cancel NEFT transactions.
What is NEFT and How Does it Work?
National Electronic Funds Transfer is a way to transfer money from one bank account to another. The minimum NEFT transfer limit is INR 1, and there's no maximum limit when initiated during the working hours. While initiating an NEFT transaction, users have to first add the beneficiary bank account details correctly.
The details include the beneficiary bank account number, his/her name and the Indian Financial System Code (IFSC). After entering these details through their bank's Internet banking portal or the mobile banking app, customers will have to submit the beneficiary addition request. The addition process can take around 30 minutes to an hour to complete. Upon a successful verification, the beneficiary details will be added. You can thus log in to Internet banking or mobile app to make an NEFT transfer online.
If you want NEFT through a bank branch, it's possible too! You need to mention the beneficiary account details in the NEFT application form and accompany it with a cheque containing the transfer amount. The details when verified successfully will lead to the addition of the beneficiary. The bank official will then transfer funds to the beneficiary's bank account.
Whether you transfer money online or via a bank branch, it will be credited to the beneficiary's bank account only after the successful verification through the Reserve Bank of India (RBI)-governed settlement batches. These batches work on a half-hourly basis. The time taken to complete NEFT transactions can be around 1-4 hours. However, it all boils down to the accuracy of these transactions.
In case of inaccuracies, be ready to witness transfer delays or potentially a transfer to the wrong bank account number. There can be multiple individuals with the same name at a particular bank. The only differentiator then is the bank account number. So, double-check the beneficiary details before going ahead whether online or through a bank branch.
Can You Cancel an NEFT Transaction?
Yes, NEFT transactions can be cancelled. But that requires a great deal of urgency as even a delay by a second from the stipulated time can result in non-cancellation. If the transaction has entered the RBI batch settlement cycle, it cannot be cancelled. That's why it is imperative to stay away from inaccurate NEFT transactions.
How to Cancel a Pending NEFT Transaction?
You can cancel a pending NEFT transaction online as well as at the bank branch. There are steps involved in both modes of cancellation. Let's understand the individual process below.
Steps Involved in NEFT Cancellation via Internet Banking
Log in to the Internet banking portal.
Go to the tab that shows your recent fund transfer made under NEFT.
If the bank allows the cancellation option, you can see it and initiate the same.
Steps Involved When Cancelling NEFT Transactions via Mobile Banking
Open the mobile banking app.
Go to the NEFT transaction tab and then the Cancellation tab against it, if available.
If the fund is yet to enter the settlement cycle, the cancellation request will be accepted.
Steps to Follow While Cancelling NEFT via Customer Care Support
Contact the bank immediately by calling its customer care support officials.
Tell them the Unique Transaction Reference Number.
The customer care official, upon your request, will then initiate cancellation.
What to Do if the NEFT Transaction Cannot be Cancelled?
If the beneficiary details are incorrect, most likely, the money will get reversed to your bank account. You don't even need an NEFT cancellation request in that case. However, if the beneficiary's name and bank remain the same but the account number is wrong, the chances are that the money will get processed to the wrong individual. You can, however, register a complaint with your bank. What may happen then is that your bank will notify the bank about the incorrect account number your money has gone to. Most likely, that bank account will see a deduction by the same amount, which will be reversed to your bank account.
Refund Policy for Failed or Incorrect NEFT Transactions
The refund process for failed or incorrect NEFT transactions will involve your bank and the receiving bank. You need to submit the NEFT transaction cancellation or reversal request to your bank, which will then transfer this to the receiving bank. The receiving bank will check all the details carefully before approving a reversal. Depending on the interbank settlement timelines, the refund will take a couple of days or longer. Your bank will notify you of refund updates through SMS, email or other communication channels. Once the refund is processed successfully, the money will come back to your bank account.
Tips to Avoid NEFT Transaction Errors
Imagine the delays, the wait and the hassles that follow with NEFT transaction errors. Why commit a mistake in the first place when you can easily avoid it? You should check the beneficiary details multiple times before confirming. If you find any errors, redo the beneficiary addition process. Check the confirmation messages carefully and have all transaction records handy.
Frequently Asked Questions (FAQs)
1. Can I cancel a completed NEFT transaction?
Cancellation is not possible for a completed NEFT transaction. However, you can contact your bank for a refund. The success of the refund will depend on how quickly you contact your bank and how quickly it notifies the receiving bank.
2. How do I cancel a pending NEFT transaction online?
Log in to your bank's Internet banking portal or the mobile app, jump to the pending NEFT transaction and use the 'Cancel' option if available. This will help cancel the transaction.
3. What happens if I send NEFT funds to the wrong account?
Contact the bank immediately with transaction details for the recovery process to kick in successfully.
