The central bank has implemented a 24-hour RTGS facility from December 14, 2020.
RBI has operationalized NEFT 24×7 starting today at 12:00 AM. This ensures the availability of electronic funds transfer at all times … https://t.co/gdIvn78bzS
– ReserveBankOfIndia (@RBI) 1576501484000
In addition, in November, the central bank ordered from January 2020 that banks can no longer charge savings account holders for online transactions in the NEFT system.
No fees on NEFT money transfer from January 2020
What is NEFT?
NEFT is a nationwide payment system that enables the transfer of funds from one bank account to another. Individuals, businesses and businesses can transfer money from one bank branch to any other bank account held by an individual, business or business in the country.
The beneficiary, that is, the bank account to which the money is to be transferred, will receive the money within two hours.
NEFT transactions can be used for payment of credit cards to card issuing banks, payment of EMI loans, etc.
- 24/7 NEFT transactions
This will allow the bank’s customers to transfer money 24 hours a day. Previously, the NEFT payment system worked for customers from 8:00 a.m. to 7:00 p.m. on all working days except the 2nd and 4th Saturdays, as banks remain closed. That day.
Between 12:00 p.m. and 8:00 a.m. this morning, NEFT settled over 11.40 lakh in transactions. The provision of NEFT 24×7 is … https://t.co/0ZravhGFUH
– ReserveBankOfIndia (@RBI) 1576501571000
According to the RBI circular published on December 6, 2019, here is how the NEFT system will work:
- There will be 48 half-hour batches each day. Payment for the first lot will start after 12:30 a.m. and the last lot will end at 12 a.m.
- The system will be available every day of the year, including statutory holidays.
- NEFT transactions after normal bank banking hours should be automated transactions initiated using Straight Through Processing (STP) modes by banks.
- The existing discipline to credit the beneficiary’s account or return the transaction (within 2 hours of settlement of the respective lot) to the originating bank will continue.
- Member banks will ensure that a positive confirmation message (N10) is sent for all NEFT credits.
- All provisions of the NEFT procedural guidelines will also apply to 24/7 NEFT transactions.
(You can read the RBI circular
- No fees on online NEFT transactions
The RBI has asked banks not to charge any fees on NEFT transactions made by savings account holders from January 1, 2020. According to the central bank press release, the move is aimed at pushing customers into the accounts. savings to transfer money using electronic modes via NEFT. .
Encourage digital payments – Fee waiver – National Electronic Fund Transfer System (NEFT) https://t.co/yr0Y4prPNS
– ReserveBankOfIndia (@RBI) 1576503175000
The central bank in its monetary policy review held in July 2019 announced its decision to remove fees levied for NEFT and RTGS transactions. The RBI statement said: “In order to give momentum to the movement of digital funds, it has been decided to remove the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems. Banks will in turn be required to pass these benefits on to their customers.
In July 2019, almost immediately after the RBI said banks should remove fees on NEFT, the State Bank of India announced a waiver of fees on NEFT, RTGS and IMPS.