Mumbai: The Reserve Bank of India has streamlined the process of payments made through the National Electronic Funds Transfer facility. Under NEFT, a customer can transfer money using internet banking and mobile phone banking to any bank in country.
Basic requirement for making an NEFT is that the sender should know account number, bank name and IFSC of the branch where the receiver holds and account. Apart from that there is no need of physical presence of a customer at the bank branch.
The central bank in its fourth monetary policy statement decided by MPC clearly says that it has increased settlement cycles for such payments from the current 12 to 23 cycles, according to The Economic Times.
A bank branch forwards a funds transfer or NEFT request to the RBI to be included in the next settlement cycle. So an increase in number of total settlement cycles means banks will be able to settle more number of transfers in a single day, and that too in lesser time.
“The NEFT settlement cycle will be reduced from hourly batches to half hourly batches. Consequently 11 additional settlement batches will be introduced at 8.30AM onwards, taking the total number of half hourly settlement batches during the day to 23,” RBI said in its first bi-monthly policy statement of fiscal 2017-18 on Thursday.
The settlement cycle will start at 8 am and will last till 7 pm, according to RBI. this means customer will have the window open for longer period of time in a day.