**Policy Summary: Enhancement of NEFT System Efficiency through Half-Hourly Settlements**
This policy, issued by the Reserve Bank of India (RBI) on May 8, 2017 (RBI201617300 DPSS CO EPPD No.261204.03.01201617), mandates the introduction of half-hourly settlement intervals within the National Electronic Funds Transfer (NEFT) system, effective July 10, 2017 (Monday). This initiative aims to enhance the efficiency of the NEFT system and improve customer convenience by accelerating fund transfer processes and ensuring faster credit to beneficiary accounts.
Specifically, the policy introduces 11 additional settlement batches during the day, scheduled at 8:30 am, 9:30 am, 10:30 am, 5:30 pm and 6:30 pm. With the original batches, this increases the total number of half-hourly settlement batches to 23. The starting batch at 8:00 am and the closing batch at 7:00 pm remain unchanged. The return discipline will remain at "Settlement batch time plus two hours."
The policy directs all participating banks to modify their Core Banking Systems (CBS) to accommodate the half-hourly settlement schedule for both initiating and accepting NEFT transactions. IDRBT-IFTAS will provide the necessary technical support for these changes.
Furthermore, the policy emphasizes the importance of adherence to existing guidelines regarding positive confirmation of successful credit to the beneficiary's account. Destination banks must send N10 messages to originating banks, which in turn must notify the remitting customer about the credit status. This instruction is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007.
For further information or clarification, contact the Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400001. Phone: 91-22-22644995; Fax: 91-22-22659566 / 22691557; Email: cgmdpssrbi.org.in.
Key Entities Referenced
National Electronic Funds Transfer: A nationwide electronic funds transfer system to facilitate transfer of funds from one bank account to another.
NEFT system: Refers to the National Electronic Funds Transfer system as a whole.
First Bimonthly Monetary Policy Statement for 201718: A statement related to monetary policy, announced bimonthly for the period 2017-2018.
IDRBTIFTAS: Likely refers to the Institute for Development and Research in Banking Technology (IDRBT)'s Indian Financial Network (IFTAS), responsible for technical aspects of NEFT implementation.
Payment and Settlement Systems Act, 2007: An act of the Indian Parliament that provides the legal basis for the regulation and supervision of payment and settlement systems in India.
Nilima Ramteke: General Manager at the Reserve Bank of India, signatory of the circular.
Mumbai, Maharashtra: Location of the Central Office Building of the Reserve Bank of India.
Reserve Bank of India: The central bank of India
RBI/2016-17/300
DPSS (CO) EPPD No.2612/04.03.01/2016-17 May 08, 2017
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 to initiate the NEFT transactions for half hourly settlement as above,
and also to accept and credit the inward NEFT transactions on half hourly basis.
IDRBT/IFTAS will communicate the technical changes required to be carried out by
participating banks and provide required support in implementing the same.
5. The additional batches will be introduced from July 10, 2017 (Monday). Banks shall
accordingly ensure their readiness in terms of technical and operational aspects.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
भुगतान और ननपटान प्रणाली विभाग, केंद्रीय कायाालय, 14ि ीं मींजिल, केंद्रीय कायाालय भिन, शहीद भगत स हीं माग,ा फोटा, मुम्बई - 400001
फोन Tel: (91-22) 22644995; फैक ् Fax: (91-22) 22659566 / 22691557 ई मेल-e-mail : cgmdpss@rbi.org.in
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai
- 400001
-2-6. For efficient customer service, the participant banks in NEFT system were advised
(vide, circular DPSS CO EPPD No. 168/04.03.01/2009-2010 dated February 5, 2010)
to send a positive confirmation to the remittance originator (customer) confirming the
successful credit of funds to the beneficiary’s account. Accordingly, beneficiary /
destination banks shall ensure strict adherence in sending the N10 messages to the
originating banks, which in turn shall ensure sending the positive confirmation to the
remitting customer advising status of credit to the beneficiary account.
7. These instructions are issued under Section 10(2) read with Section 18 of Payment
and Settlement Systems Act, 2007.
Yours faithfully
(Nilima Ramteke)
General Manager