As per the announcement made by Reserve Bank of India (RBI) earlier in the month to make National Electronic Funds Transfer (NEFT) facility available for 24 hours a day for customers to transfer the funds, bank customers can enjoy the NEFT facility to transfer money online anytime and any day including weekends and holidays from today.
The NEFT feature is provided by the banks to transfer funds electronically. The maximum limits for fund transfer through NEFT vary from bank to bank.
So far, the NEFT facility was available in normal business hours from 8 am to 6.30 pm only. The facility was restricted from 8 am to 1 pm on first and third Saturdays of the month. No NEFT transaction was allowed on banking holidays. However, Immediate Payment Service (IMPS) was available on all days but a restriction of transfer-limit of Rs. 2 lakhs only.
This step of RBI has eased the deadline pressures and has provided the flexibility of making payment at any time of customers’ choice. The customers can enjoy the NEFT features round the clock on all days.
RBI’s move is expected to give impetus to digital fund transfer movement in the market which could translate into the demand growth and consumers would have more purchasing power.
As the economy is experiencing low economic growth, this step can accelerate the fund movement in the economy.
Taking other preventive measures, the RBI has directed all banks to not to charge any fees on NEFT transactions done by savings account holders from January 1, 2020. The press release issued by the central bank says that the step has been taken to push savings account holders to do more digital transaction through NEFT.
The release says, ‘In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems.’
The transaction done via NEFT after the normal business hour of banks will be routed through ‘Straight Through Processing’ (STP) modes. The RBI has directed banks to make the system upgraded and ensure availability of infrastructural requirements for smooth transaction of customers round the clock. The banks are supposed to send confirmation messages for all NEFT credits.