The Reserve Bank of India in its First Bi-monthly Monetary Policy Statement for 2017-18 had announced the introduction of additional settlements in the NEFT system to enhance the efficiency and add to customer convenience. The additional 11 settlements at half-hour intervals will be introduced with effect from July 10, 2017 (Monday) at 8.30 am, 9.30 am, 10.30 am ………5.30 pm and 6.30 pm, taking the total number of half-hourly settlement batches during the day to 23.
The starting batch at 8.00 am and the closing batch at 7.00 pm shall remain the same. The return discipline shall also remain the same, i.e., B+2 hours (settlement batch time plus two hours) as per extant practice.
NEFT stands for National Electronic Funds Transfer, which is a country-wide payment system facilitating the transfer of funds on a one-to-one basis. Through NEFT, an individual or a company can electronically transfer funds from any bank to any individual or company having an account with any other bank in the country.
Besides personal funds transfer, the NEFT system can also be used for a variety of transactions, which include payment of credit card dues to the card-issuing banks, payment of loan EMI, etc. You need to quote the IFSC of the beneficiary card issuing bank to initiate the bill payment transaction using NEFT. Mentioning the IFSC is mandatory for everyone.
Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT thereon. Even individuals, who do not have a bank account, can deposit cash at the NEFT-enabled bank branches providing instructions to transfer funds using NEFT.