Bank customers will be able to transfer funds round-the-clock through the National Electronic Funds Transfer (NEFT) system from 16 December. This will be available on all days of the year, the Reserve Bank of India (RBI) announced on Friday. "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)," RBI said in a press statement. This means you will be able to send and receive money anytime. The NEFT payment system so far is available for customers from 8 am to 7 pm on all working days, except the second and fourth Saturdays of the month.
Five things to know about NEFT transactions to be available 24x7 from 16 December
1) NEFT transactions after usual banking hours of banks are expected to be automated transactions initiated using ‘Straight Through Processing (STP)’ modes by the banks.
2) The existing discipline for crediting beneficiary’s account or returning the transaction (within 2 hours of settlement of the respective batch) to originating bank will continue.
3) Member banks will ensure sending of positive confirmation message (N10) for all NEFT credits.
4) The RBI has asked the member banks to keep adequate liquidity in their current account with the regulator at all times to facilitate successful posting of NEFT batch settlements.
5) Member banks are also advised to initiate necessary action and ensure availability of all necessary infrastructural requirements at their end for providing seamless NEFT 24x7 facility to their customers. Banks may disseminate information on the extended timings for NEFT to all their customers.
In order to promote digital transactions in the country, From July 1 this year, RBI had decided not to levy charges on transactions through NEFT and Real Time Gross Settlement (RTGS) system.
IMPS, RTGS and NEFT
Currently, IMPS offers transaction facilities 24x7. In case of IMPS, there is a value cap but NEFT doesn’t have any such limit. RTGS is meant for large-value instantaneous fund transfers, while NEFT is used for fund transfers of up to ₹2 lakh.