Now Bank Customers Can Enjoy NEFT Transfers 24/7

In its Monetary Policy Review meet, The Reserve Bank of India (RBI) has announced the extension of the collateralised liquidity support on the National Electronic Funds Transfer (NEFT) payment system to round the clock. as of today this facility is only available till 7:45 pm on a working day."In order to facilitate smooth settlement of these transactions in the accounts of the banks maintained with RBI, it has been decided that the Reserve Bank will extend the collateralized liquidity support, which is currently available till 7.45 pm on NEFT working days, round the clock," RBI said. The Central Bank said that this move will better fund management by banks in the future.

In its august monetary Policy Review, it was discussed and finalized that the NEFT payments could be extended to be functional round the clock from the ,month of December 2019. The NEFT System that is operative as a retail payment used to be available to customers only from 8:00am to 7:00pm of every working day except on 2nd and 4th Saturdays, making it a major incontinence otherwise. This shift or extension of time to a round the clock model is only going to revolutionize the the retail payments system of the country. RBI cut its key rates by 0.25 per cent to boost economy from six-year low saying reduction was necessary to revive growth.

The repo rate, at which it lends to the system, has been brought down to 5.15 per cent to help reduce borrowing costs for home and auto loans, which are now directly linked to this benchmark.

This is the fifth straight cut in rates by the Reserve Bank in its key rates in as much policy reviews in 2019, and takes the total quantum of reductions to 1.35 per cent.

Also Read: RBI Cuts Interest Rates In Monetary Policy Update