The Reserve Bank of India (RBI) has decided to slash clearance time for National Electronic Funds Transfer (NEFT) in an attempt to enhance the efficiency of the electronic payment system and add to customer convenience.
In line with the document on Vision-2018 for Payment and Settlement Systems, the NEFT settlement cycle will be reduced from hourly batches to half hourly batches, the RBI stated in the first bi-monthly monetary policy for 2017-18.
The newly appointed Deputy Governor B P Kanungo stated that 11 additional settlement batches will be introduced at 8.30 am onwards, taking the total number of half hourly settlement batches during the day to 23.
RBI also stated the starting batch at 8 am and closing batch at 7 pm shall remain the same and the return discipline will also remain the same as per the existing practice.
Takeaways from above News-
- RBI has decided to slash clearance time for NEFT
- National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer
- Under NEFT, the transactions are processed and settled in batches, hence are not real time.
If you have any other takeaways, do share with us in the comment section
Source- The Economic Times