MANU/RMIC/0060/2017

Ministry : Reserve Bank of India

Department/Board : Department of Payment and Settlement Systems

Circular No. : DPSS.(CO).EPPD.No.2612/04.03.01/2016-2017
                   RBI/2016-2017/300

Date : 08.05.2017

Notification/ Circulars Referred : Circular DPSS CO EPPD No. 168/04.03.01/2009-2010 dated February 5, 2010 MANU/RMIC/0013/2010

Citing Reference:
Circular DPSS CO EPPD No. 168/04.03.01/2009-2010 dated February 5, 2010 MANU/RMIC/0013/2010  Referred

The Chairman and Managing Director / Chief Executive Officer
of member banks participating in NEFT

Madam / Sir,

National Electronic Funds Transfer (NEFT) system - Settlement at half-hourly intervals

National Electronic Funds Transfer (NEFT) system presently settles the fund transfer requests of the participating banks on net basis at hourly intervals from 8:00 am to 7:00 pm on all working days. All participating banks have been advised to give the credit to the beneficiary customer only after the inter-bank settlement has been completed and the End-of-Batch (EOB) message is received by them.

2. As announced in the First Bi-monthly Monetary Policy Statement for 2017-18, additional settlements in the NEFT system at half-hour intervals are being introduced to enhance the efficiency of the system and add to customer convenience. The half hourly settlements would speed up the funds transfer process and provide faster credit to the destination accounts. Accordingly, it is decided to introduce 11 additional settlement batches during the day (at 8.30 am, 9.30 am, 10.30 am ......... 5.30 pm and 6.30 pm), taking the total number of half hourly settlement batches during the day to 23.

3. The starting batch at 8.00 am and closing batch at 7.00 pm shall remain the same as hitherto. The return discipline shall also remain the same i.e., B+2 hours (Settlement batch time plus two hours) as per extant practice.

4. The participating banks are, therefore, advised to carry out the required changes in their CBS system........