RBI Says NEFT Transactions Can Be Done 24 X 7 From December 16, 2019

Customers of all banks can make NEFT transactions anytime on all days from December 16, 2019. The facility to be made available from December 16 by all banks under the instructions of RBI, the new system will lift the existing restrictions on the NEFT transactions out of bank hours and on weekends.

What the new announcement by RBI means

At present, the NEFT transactions booked beyond the working hours of the banks will be completed eventually when the bank resumes its functions. Hence the customers cannot transact using NEFT system out of bank hours. Lifting these constraints, RBI has announced on Wednesday, December 4, 2019 that customers of all banks can use the NEFT facility round the clock even on weekends with effect from Monday, December 16, 2019.

How RBI will support NEFT out of bank hours

RBI has said in a statement that the NEFT transactions after the usual bank hours will be initiated automatically with the support of using 'Straight Through Processing (STP)' modes by the banks. The existing method of adding new beneficiary to a bank account and returning the transactions within 2 hours following the settlement to the originating bank will continue as it is, RBI said in a press meeting.

RBI statement on the revised system

An RBI statement on the revised system said, "All provisions of NEFT procedural guidelines will be applicable for NEFT 24x7 transactions as well. Member banks are also advised to initiate necessary action and ensure the availability of all necessary infrastructural requirements at their end for providing seamless NEFT 24x7 facility to their customers. Banks may disseminate information on the extended timings for NEFT to all their customers."

Businesses have welcomed this move by the RBI as the new extension of the NEFT hours can help support some crucially important transactions out of the bank hours.