Mumbai/IBNS: After rolling back the National Electronic Funds Transfer (NEFT) charges in July, the RBI has decided to do away with the time limit for the digital transaction from Dec 16, the Central bank said in a notification.
"It has been decided that the above facility shall be made available from December 16, 2019 with the first settlement taking place after 00:30 hours on December 16, 2019 ( night of December 15, 2019)," the RBI said in a notification issued on Friday.
Round-the-clock NEFT system will be available on all days, including holidays, it added.
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.
NEFT transactions after usual banking hours of banks are expected to be automated transactions initiated using ‘Straight Through Processing (STP)’ modes by the banks.
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, the regulator added.
Member banks will ensure sending of positive confirmation message for all NEFT credits, the Central bank said and added that all provisions of NEFT procedural guidelines will be applicable for NEFT 24x7 transactions as well.
"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," it said.
Banks may disseminate information on the extended timings for NEFT to all their customers.
On July 1 last, the RBI rolled back the minimum charges on transactions routed through NEFT and Real Time Gross Settlement(RTGS).
Currently, the NEFT and RTGS systems are available from 8 AM to 8 PM.