The Reserve Bank of India (RBI) on Friday in its Monetary Policy Meet announced that the National Electronic Funds Transfer (NEFT) facility will be available round the clock starting from December.
The fund transfer system is currently only available during working hours on weekdays, till 7:45 pm. On second and fourth Saturdays of every month, the facility is cannot be availed. The new move will give impetus to online payments, and help banks manage funds better.
“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 collateralised liquidity support, which is currently available till 7.45 pm on NEFT working days, round the clock,” the RBI said.
The plan to put into effect NEFT at all hour was first announced by the central bank in its August Monetary Policy Meet.
The RBI also announced a 0.25 percent decrease in the repo rate, at which it lends to commercial banks, to 5.15 percent, and the reverse repo rate to 4.9 percent.
This was the fifth consecutive rate cut effected by the Shaktikanta Das-led panel, and it was in addition to a cumulative 110 basis points rate cut that RBI has announced so far this year.
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