In a move of making online transactions easier The Reserve Bank of India will now make National electronic fund transfer (NEFT) available for 24 hrs from December, informed RBI governor Shaktikanta Das today. The move will now “revolutionize” retail payments system in the country, Das added during the press meet. The decision has been taken three-days after Monetary Policy Committee (MPC) meeting.
National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of India (RBI). NEFT 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. NEFT settles fund transfers with 23 settlements occurring between 8:00 am and 6:30 pm on week days and the first, third and fifth Saturday of the calendar month. Now as per the RBI decision NEFT system will be open for 24 hours in which one can settle fund transfer.
The new announcement by the central bank will now boost online transactions in the country. The RBI has even waived off charges on fund transfers through RTGS and NEFT routes to boost digital transactions and have also asked banks to pass on the benefits to customers.
The RBI has even cut the repo rate by 35 basis points from 5.75 per cent to 5.40 per cent. The reverse repo rate has been revised to 5.15 per cent, while the marginal standing facility (MSF) rate and the bank rate stand at 5.65 percent and has also decided to maintain the monetary policy.
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