If you conduct online transactions through the National Electronic Funds Transfer (NEFT), there is good news for you. Tomorrow, ie from 16 December onwards, you will get this facility 24 hours a day, seven days a week. Earlier this facility was not available 24 hours.
The Reserve Bank (RBI) said in a statement that now the facility of transaction under NEFT will be available seven days a week including holidays. NEFT is a method of online transaction, in which you can transfer to another bank account up to Rs 2 lakh online at a time.
Started in November 2005, the setup was established and maintained by the Institute for Development and Research in Banking Technology (IDRBT). The system enables bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis. It is done via electronic messages.
These transactions are settled on normal days between 8 AM and 7 PM and on the first and third Saturdays from 8 AM to 1 PM m on an hourly basis.
Unlike real-time gross settlement (RTGS), fund transfers through the NEFT system do not occur on a real-time basis. NEFT settles fund transfers in half-hourly batches with 23 settlements occurring in the time periods stated above. Transfers initiated outside this time period are settled at the next available window. No settlements are made on the second and fourth Saturday of the month, or on Sundays, or on public holidays.
From 16 December, there will be 48 half-hourly batches occurring between 00.30 am to 00:00 am every day regardless of a holiday or otherwise.
The RBI said in a notification that the central bank of the country decided to start the NEFT transaction round the clock, seven days a week. The RBI has asked all member banks to keep sufficient funds in the current account with the regulator at all times so that there is no problem in such transactions.
The central bank said that all banks had also been instructed to maintain all the necessary infrastructure to ensure smooth transactions. It said that banks could inform consumers about the changes in NEFT.
The RBI had on 6 June decided to abolish the fees on NEFT and RTGS transactions.