RBI to provide liquidity support to banks for smooth NEFT transactions

The Reserve Bank of India (RBI) will provide liquidity support to banks to facilitate smooth settlement of transactions under the proposed 24x7 National Electronic Funds Transfer (NEFT) system.

This is among steps that the central bank announced to support use of the payment and settlement system by customers, especially retail clients. The RBI will extend the collateralised liquidity support on NEFT, which is currently available till 7.45 pm on working days, round the clock. 

This is done with banks holding accounts with the RBI. This will help in better funds management by banks, the RBI said. As a step to provide a