Indian central bank, the Reserve Bank of India said that it had made plans to allow a round-the-cloud transferring of funds all through NEFT. Moreover, the new change will take effect from December 2019, according to RBI’s recent statement. The central bank also noted that the new amendment would revolutionize the way conventional retail payment system in the country works.
RBI conducts the National Electronic Funds Transfer or NEFT payment system in the country. According to the previous guidelines, the NEFT is available for consumers from 8 AM all through 7 PM. NEFT also works on typical working days other than the fouth and the second Saturdays of every month. Moreover, the NEFT system is also used to conduct transfer up to Rs. 2 lakhs.
The new initiative is going to bring new timings and changes for NEFT:
- The document of 2021 Payment System Vision suggests that RBI will allow all the NEFT payment system on an everyday 24×7 basis. It will come into effect from December 2019.
- RBI also highlighted a few things in its June policy. According to the June policy, the central bank is not going to take charges when the funds are transferred via NEFT and RTGS. Moreover, this will give rise to better digitalization of the transactions and banks can quickly provide the benefits to the customers.
- RTGS is reserved for the fund transfer of tremendous value. RBI also extends the timings of the regular payments made by RTGS. Moreover, this is effective from the 1st of June, the schedules will be from 8:00 AM to 6:00 PM.
- In July, the most significant asset lender in the country, SBI said that it is renouncing IMPS chargers for the transfer made via mobile banking, internet banking, & also for the YONO customers. Moreover, this would take effect from the 1st of August.
- In the meantime, RBI’s MPC will cut off its vital rate of interest for the fourth time. Currently, the MPC repo rate is recorded to be lowest in nine long years.