24x7 fund transfers under NEFT from Dec 2019 to boost digital payments

RTGS is mostly used for transactions above Rs 2 lakh. The RBI added it will facilitate the creation of a central payment fraud registry for tracking payment system frauds

With a view to boost digital payments, the Reserve Bank of India (RBI) will allow the National Electronic Funds Transfer (NEFT) payment system to operate on a 24x7 basis from December 2019. RBI Governor Shaktikanta Das said the move was expected to revolutionise the retail payments system of the country. 

At present, the facility of NEFT — usually preferred for fund transfers of less than 

Rs 2 lakh — is available between 8 am and 7 pm on all working days, except the second and fourth Saturdays of every month.

According to Mrutyunjay Mahapatra, managing director and chief executive of Syndicate Bank, the