Bank customers should note that the online transfer of money will be posted on Sunday (23 May). The National Electronic Funds Transfer (NEFT) will not be available for 14 hours on Sunday (May 23) from 12.01 p.m. to Sunday at 2 p.m.
The Reserve Bank of India (RBI) released a notice on Monday stating: “A technical upgrade of NEFT aimed at improving performance and resilience is planned after close of business on May 22, 2021.”
“Accordingly, NEFT service will be unavailable on Sunday, May 23, 2021 from 00:01 am to 2:00 pm,” she added.
“Member banks can ask their customers to plan their payment transactions accordingly. NEFT members will continue to receive event updates via NEFT system broadcasts, “said the RBI.
However, the RBI report states that the real-time gross settlement function (RTGS) will work as usual during this period. It is worth recalling that on April 18, RBI completed a similar technical upgrade for RTGS.
It should be noted that the NEFT and RTGS facilities were expanded by the RBI to non-bank payment system operators in April 2021. Now the NEFT and RTGS modes can be used by prepaid payment instrument (PPI) issuers, card networks and white label ATM operators and trade receivables discounting system (TReDS) platforms. According to RBI, this was done to encourage non-bank participation in all payment systems.
“This facility is intended to minimize the settlement risk in the financial system and increase the reach of digital financial services for all user segments. However, these companies are not entitled to a Reserve Bank liquidity facility to facilitate the settlement of their transactions in these CPS. Necessary instructions will be issued separately, ”says a statement from the banking supervisory authority.
