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The Reserve Bank of India is making NEFT System available 24x7 from 16th December

The Reserve Bank of India is making NEFT System available 24x7 from 16th December

The Reserve Bank of India is making NEFT System available 24x7 from 16th December

In a measure towards promoting digital transactions, the Reserve Bank of India recently had stated that round-the-clock transactions shall be permitted under the National Electronic Funds Transfer (NEFT) system from 16th December 2019.

The bank customers shall now able to transfer money through NEFT around the clock every day which includes weekends and holidays from 16th December 2019, the Reserve Bank of India had announced.

After the normal banking hours, these transactions are set to be automated initiated by making use of 'Straight Through Processing (STP)' modes through the banks. The current discipline for crediting the beneficiary's account or returning the transaction in 2 hours of settlement towards the originating bank would also carry on, the RBI stated in a press statement.

The 24X7 NEFT systems would be available every day of the year, which also includes holidays. NEFT transactions are established in hourly batches. In the case of weekdays, the batches are available from 8 am to 7 pm. On the first and third Saturdays, the settlement takes place from 8 am to 1 pm.

In a notification, the Reserve Bank of India had stated that it has decided that the facility on NEFT system is going to be made available for 24X7. The RBI in August had stated that all the NEFT transfer service and the facility shall be made available 24x7 for customers by December.  The first settlement would take place after 00:30 hours on 16th December 2019 (night of 15th December 2019).

The Reserve Bank of India had asked the member banks towards keeping adequate liquidity in their current account with the regulator at all times in order to facilitate the successful posting of NEFT batch settlements.

As per the RBI statement, all the provisions of NEFT procedural guidelines are going to be applicable for NEFT 24x7 transactions. The member banks are also recommended to start necessary action and make certain availability of all the essential infrastructural necessities at their end for furnishing smooth NEFT 24x 7 facilities towards their consumers. The banks might disseminate information on the extended timings for NEFT towards each of their customers.

Also, the member banks would make certain that the sending of positive confirmation message relating to all the NEFT credits and every provision of NEFT procedural guidelines shall be applicable for 24x7 transactions.

The prevailing discipline for crediting beneficiary's account or returning the transaction (in 2 hours of settlement of the respective batch) towards originating bank shall continue, the RBI statement added.

The banks might disseminate information on the extended timings for NEFT to every their customers, RBI stated.

From 1st July 2019, the Reserve Bank of India had decided not to impose charges on transactions through NEFT as well as Real Time Gross Settlement (RTGS) system with the purpose of promoting digital transactions in the nation, as well as had asked the banks to pass on the benefits towards the consumers.

Previously, the Reserve Bank of India had imposed minimum charges on banks for transactions transmitted through RTGS as well as NEFT. Banks, in turn, impose charges on their customers.

RTGS is intended for large-value instantaneous fund transfers, whereas NEFT is utilized for fund transfers of up to Rs 2 lakh.

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Author:

eStartIndia Team



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