NEFT 24X7: RBI to make NEFT available 24×7 in boost to digital payments
NEFT 24×7: The Reserve Bank of India (RBI) plans to make the online payment system, the National Electronic Funds Transfer (NEFT), available 24×7, in what may provide a boost to the government’s digital payments plan.
As mentioned in the Payment System Vision 2021 document, the Reserve Bank will make available the NEFT system on a 24×7 basis from December 2019. This is expected to revolutionize the retail payments system of the country,” the RBI said in a release on Wednesday.
Come December and you will be able to make National Electronic Funds Transfer (NEFT) every day of the week and at any time. Unlike now, when you have to schedule your NEFT payments after the cut-off time, which goes through the next working day, the time limit is going to be scrapped soon, the RBI said.
If RBI makes NEFT 24×7, it will not only ease the fund transfer for customers round the clock but will also take some load-off the bank branches for executing such transactions.
The Reserve Bank of India (RBI) in its Statement on Regulatory and Developmental Policies issued on August 7, 2019, has stated that there will be round-the-clock availability of the National Electronic Funds Transfer System from December 2019.
- Customers can transfer anywhere between Rs 1 and Rs 25 lakh via NEFT (for HDFC Bank; varies from bank to bank) through net banking in a day.
- Through RTGS, they can transfer between Rs 2 lakh and Rs 25 lakh through net banking in a day.
- However, as of now, these online transactions are not available on Sundays, on the second and fourth Saturdays of every month and on bank holidays.
At present, transfer of funds via NEFT is dependent on bank working hours. The facility of electronic transfer of funds is available from 8.00 am to 7.00 pm on all working days of the week, except the second and fourth Saturdays in a month and hence they restrict customers’ ability to carry out such transactions.
- Online RTGS transactions are available for lesser hours. It can be done till 4 pm (varies from bank to bank).
Options Currently available:
- Customers can currently transfer money through Immediate Payment Service (IMPS) round the clock but the maximum amount allowed is Rs 2 lakh.
- If RBI makes NEFT 24×7, it will not only ease the fund transfer for customers round the clock but will also take some load-off the bank branches for executing such transactions
Earlier in June 2019, RBI had issued a statement stating that in order to provide an impetus to digital funds movement, it had decided to do away with the NEFT, RTGS charges. “It has been decided that with effect from July 1, 2019, processing charges and time-varying charges levied on banks by RBI for outward transactions undertaken using the RTGS system, as also the processing charges levied by RBI for transactions processed in NEFT system, will be waived by the Reserve Bank.” The inward transactions were, however, free for all.
It is, however, important to note that the IMPS charges are still there and the banks may levy it. Immediate Payment Service (IMPS) is an instant inter-bank electronic fund transfer service through mobile phones and through other channels such as ATM, Internet Banking, etc. The funds in the case of IMPS gets credited into the beneficiary account immediately. With NEFT available any time of the day, the payment transfer system will be of great help to the account holders.