The Reserve Bank of India in its Statement on Developmental and Regulatory Policies issued on October 4 has bolstered its intention of maintaining better funds management by banks when the facility of National Electronic Funds Transfer (NEFT) becomes available 24×7 basis from December, 2019. RBI has stated that once NEFT becomes a round the clock facility, it will extend the collateralised liquidity support, which is currently available till 7.45 pm on NEFT working days.
Earlier in August 2019, RBI had called for round-the-clock facility for fund transfer through NEFT starting December 2019. As of now, NEFT is available for users from 8 am till 7.45 pm on all working days of the banking industry.
Earlier, in July 2019, RBI had waived off the charges it levied on banks for the NEFT and RTGS fund transfers. This led banks to waive off such fund transfer charges from the bank customers for all digital transactions. This means, there is no charge to make a fund transfer using NEFT or RTGS through net banking or mobile banking. There are banks which charge for NEFT or RTGS facility if conducted at bank branch. Going forward, in addition to Nil charges, the NEFT, RTGS can be done anytime during the day from the digital modes.
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The other mode of electronic fund transfer is the Immediate Payment Service (IMPS) which unlike NEFT is immediate in nature. IMPS is already available round-the-clock for the users and the banks are allowed to charge for IMPS charges even though not all banks charge them for digital modes. Some banks allow credit card bill dues to be paid through IMPS.
The minimum amount allowed to be transferred through NEFT and IMPS is generally Rs 1 while the maximum is capped at Rs 10 lakh and Rs 2 lakh respectively per day by most banks. Making NEFT available 24×7 will help individuals to make payments even at odd hours of the day.