NEW DELHI: Come December 16, transferring funds through the National Electronic Funds Transfer (NEFT) system is set to be available all day, every day for bank customers. The move was announced by the Reserve Bank of India after its Monetary Policy Committee meeting last week, with an aim to make banking easier and making more banking tools available to customers online.
“It has been decided that the NEFT shall be made available from December 16, 2019 with the first settlement taking place after 00:30 hours on December 16, 2019 (i.e. night of December 15, 2019),” the central bank’s statement said.
The decision makes it extremely easy for bank customers to make large ticket transactions (up to Rs 2 lakh) at any time during the day, especially in times of emergency. So far, the NEFT payment system was available for customers only between 8 am and 7 pm on all working days, except the second and fourth Saturdays of the month.
Currently, banking customers have only one 24x7 transaction tool: IMPS. However, the system is not operable for all transactions since it has a smaller cap. NEFT, however, has no such transaction limits.
According to experts, NEFT transactions after usual banking hours are expected to be automated, and executed on ‘Straight Through Processing. The RBI has also made it so that current norms on crediting beneficiary’s account or returning the transaction within 2 hours of settlement will continue.
RBI advice to banks
The RBI has asked member banks to keep adequate liquidity in their current accounts with the regulator at all times to facilitate successful NEFT batch settlements