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Transfer funds via NEFT 24X7 from December 16

Reserve Bank of India (RBI) announced to make the National Electronic Funds Transfer (NEFT) system available on a 24x7 basis from December 16. In a notification on Friday, "Availability of National Electronic Funds Transfer (NEFT) System
on 24x7 basis", it has notified that facility 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).

Worth mentioning that RBI has directed banks not to charge savings account holders for NEFT with effect from January 2020. The central bank had already waived NEFT processing charges that it imposed on banks with a directive that they pass on the reduction.

What is NEFT-

The Fund transfer through this method takes up to 2 hours to get credit the amount into the receiver's account. This can be done through mobile banking, net banking and by visiting a branch as well. If the individual doesn't have a bank account, then he or she can carry out this transaction by visiting an NEFT-enabled branch. However, in case of no bank account, one can transfer a maximum of Rs 50,000 in a single transaction. There is no such maximum limit on account to account NEFT transfers. Apart from this, those who do not have a bank account can transfer funds through this method by giving details such as name, address, telephone number. 

Member banks are advised the following-

According to the RBI notification, member banks are advised to note that (a) there will be 48 half-hourly batches every day. (b) The settlement of first batch will commence after 00:30 hours and the last batch will end at 00:00 hours. The system will be available on all days of the year, including holidays. (c) NEFT transactions after usual banking hours of banks are expected to be automated transactions initiated using ‘Straight Through Processing (STP)’ modes by the banks. (d) The existing discipline for crediting the beneficiary’s account or returning the transaction (within 2 hours of settlement of the respective batch) to the originating bank will continue. (e) Member banks will ensure the sending of positive confirmation message (N10) for all NEFT credits. (f) All provisions of NEFT procedural guidelines will be applicable for NEFT 24x7 transactions as well.

This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). As per the notification "Member banks are expected to keep adequate liquidity in their current account with Reserve Bank of India at all times to facilitate the successful posting of NEFT batch settlements." Member banks are also advised to initiate necessary action and ensure the 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, it further added.

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