On December 7, 2019, With a view to promote digital transactions, the Reserve Bank of India (RBI) has allowed the round-the-clock (24×7) transactions facility under the National Electronic Funds Transfer (NEFT) system to customers on all days including weekends and holidays from December 16,2019.
This direction was issued by RBI under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
Key Points:
i.Under the current system, funds can be transferred through NEFT from 8 am to 7 pm from Monday to Friday (except on Holidays). On the 1st and 3rd Saturday of the month, NEFT can be done from 8 am to 1 pm in the afternoon.
ii.After normal period of functioning of banks, NEFT can be done in auto mode through ‘Straight Through Processing (STP)’ model. However, within 2 hours of the transaction, the system will remain continue for crediting the beneficiary’s account or returning the transaction to the original bank account.
iii.All member banks are also asked to develop the necessary infrastructure for smooth NEFT transaction.
About NEFT:
It is a payment system facilitating funds transfers from one bank account to another. One can access this service either by using Internet banking or by visiting the bank branch.
There is no limit on the minimum or maximum amount you can transfer, however, individual banks may put restrictions on the per transaction amount.
As per the recommendation of Nandan Nilekani-led Committee on Digital Payments panel, RBI directed banks to withdraw the charges levied on the NEFT transactions.
About RBI:
Headquarters– Mumbai, Maharashtra
Formation– 1 April 1935
Governor– Shaktikanta Das
Deputy Governors– 4 (BP Kanungo, N S Vishwanathan, Mahesh Kumar Jain, 1 is yet to be appointed)
