RBI today said that it will make it easier for people to transfer money as NEFT will soon be available 24 hours as opposed to working hours on weekdays as of now.
RBI today said that it will make it easier for people to transfer money as NEFT will soon be available 24 hours as opposed to working hours on weekdays as of now. The revised timings will be effective from December this year, RBI announced in Friday’s Monetary Policy Meet. The same is likely to spur retail and online payments in the country. National Electronic Funds Transfer is Reserve Bank of India controlled platform which facilitates interoperable payment for fund transfer by a customer between different accounts.
Currently, NEFT is available only till 7:45 pm on working days. Also, NEFT does not work on 2nd and 4th Saturday of the week. “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 central Indian bank said, adding that the same will help the banks in better fund management. RBI had announced its plan of making NEFT 24×7 in the Monetary Policy Meet held in August 2019.
Also Read: RBI Monetary Policy LIVE: RBI cuts repo rate for the fifth time in a row; loans to get cheaper
Among major announcements, RBI today cut the repor rate by 25 basis points to 5.15% from 5.40%. The MPC decided to bring down the rates “on the basis of an assessment of the current and evolving macroeconomic situation”. Further, the reverse repo rate was also cut to 4.90% and the marginal standing facility rate and Bank Rate to 5.40%. The current cuts mean that loans will be cheaper. The government looks to spur demand and growth while also achieving the medium-term target for consumer price index inflation of 4%.