NEFT transactions will be available 24x7 from December 16
Mumbai, December 6 () In an attempt to promote digital transactions, the RBI said Friday that 24-hour transactions will be allowed under the National Funds Electronic Transfer (NEFT) system beginning December 16.
The 24X7 NEFT system will be available every day of the year, including holidays, he added.
NEFT transactions are settled in batches per hour. For weekdays, lots are 8 a.m. at 7 p.m. On the first and third Saturday, the agreement occurs from 8 am to 1 pm.
In a notification, the central bank said it was decided that the installation of the NEFT system will be available from December 16, 2019, 24 hours a day, 7 days a week.
The first agreement will take place after 00:30 on December 16, 2019 (night of December 15, 2019).
The RBI has asked member banks to maintain adequate liquidity in their current account with the regulator at all times to facilitate the successful publication of NEFT batch settlements.
NEFT transactions after normal banking hours are expected to be automatic transactions initiated using the 'Direct Processing (STP)' modes by banks.
The existing discipline to credit the beneficiary's account or return the transaction (within 2 hours after the settlement of the respective lot) to the home bank will continue, he added.
In addition, member banks will ensure that a positive confirmation message is sent for all NEFT credits and all provisions of the NEFT procedure guidelines will also be applicable for 24x7 transactions, he added.
Member banks are also advised to initiate the necessary actions and ensure the availability of all necessary infrastructure requirements to their end to provide 24x7 uninterrupted NEFT facilities to their customers, the regulator said.
Banks can disseminate information on extended hours for NEFT to all of their clients, RBI said.
Since July 1 of this year, RBI had decided not to impose charges on transactions through the NEFT system and the real-time gross settlement system (RTGS) to promote digital transactions in the country, and asked the banks to transmit the benefits to customers.
Previously, the RBI used to impose minimum charges to banks for transactions sent through RTGS and NEFT. The banks, in turn, impose charges on their customers. RTGS is intended for high-value instant fund transfers, while NEFT is used for fund transfers of up to Rs 2 lakh. KPM ABM