The facility of 24 hour National Electronic Fund Transfer (NEFT) has commenced in all banks from 16th December. No fee will be charged from the bank customers. The Reserve Bank of India (RBI) has directed the banks to do so. Earlier, the NEFT facility was from 8 am to 7 pm. Of the first and third Saturdays of the month, the time lasted from 8 am to 1 pm. RBI has taken this step to promote digital banking across the country. The RBI said that retail digital transactions are growing at a rate of 60 percent annually. Between October 2018 to September 2019, it has been an average of Rs. 2,846 crores. A total of Rs. 302 lakh crore transactions have been made. There were 1,126 crore transactions through NEFT and UPI. The growth rate of UPI is 263 percent. NEFT's growth rate was 20 percent.
In a review meeting of the Monetary Policy Committee of RBI held on 6th June, the RBI had made the transactions free of cost through real-time gross settlement (RTGS) and National Electric Fund transfer, giving a significant gift to the general public. The rule came into effect from July one. NEFT means national electronic funds transfer. Neft is used for transactions up to two lakh rupees through the internet. Through this, money can be sent to the bank account of any branch from any bank account of any office.
The rare condition is that both the sender and the money receiver must have internet banking service. If both accounts associate to the same bank, the money can be transferred within a few seconds in reasonable condition.
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