NEFT transactions to be available 24×7 on all days from December 16bankerbano
The National Electronic Funds Transfer (NEFT) system will be made available 24×7 on all days from December 16, 2019. The Reserve Bank of India (RBI) made the announcement on December 6, 2019.
The NEFT transaction system will be available round-the-clock on all days of the year including holidays. The move is aimed at promoting digital transactions.
Currently, the NEFT transactions are settled in hourly slots during banking hours. During the weekdays, the NEFT slots include from 8 am to 7 pm. During weekends, NEFT settlement happens from 8 am to 1 pm but only on the first and third Saturdays.
The NEFT transfer system is currently not available on holidays or Sundays and or at any other time than the prescribed time slots.
NEFT transfer to be available 24×7
• According to the latest notification by the apex bank, the facility of NEFT transfer system will be made available 24×7 from December 16.
• The first fund transfer will be enabled under the new change after 00:30 hours on December 16, 2019.
• The RBI has asked all its member banks to ensure that there is adequate liquidity in their current account with the regulator at all times to enable successful NEFT settlements.
• The NEFT transactions post usual banking hours will be automated transactions, initiated using ‘Straight Through Processing (STP)’ modes by the banks.
• The member banks will also have to send positive confirmation messages for all NEFT credits.
• All the provisions of NEFT procedural guidelines will also be applicable for 24×7 transactions.
• The member banks have also been advised to take necessary action and ensure availability of all necessary infrastructure to facilitate smooth NEFT 24×7 facility to their customers.
• However, the existing principle of crediting the beneficiary’s account or returning the transaction within 2 hours of settlement of the respective slot to the originating bank will continue.
• The RBI has directed its member banks to disseminate information on the extended timings for NEFT transfer to all their customers.
The RBI had decided not to impose any charge on transactions done through NEFT and RTGS system from July 1, 2019. This was done to promote digital transactions in the country.
Earlier, the central bank used to levy minimum charges on the banks for transactions done through NEFT and RTGS system and the banks, in turn, levied charges on their customers.
While NEFT is used for money transfers up to Rs 2 lakh, the Real Time Gross Settlement (RTGS) system is used for large-value instantaneous fund transfers.