Online Money Transfer Through NEFT To Be Available 24x7: Reserve Bank

The Reserve Bank of India on Thursday said that online money or fund transfer through the National Electronic Funds Transfer (NEFT) payment system will now work round the clock. The central bank said that this will allow banks improve their fund management system. .

"In order to facilitate smooth settlement of these transactions in the accounts of the banks maintained with RBI, it has been decided that the Reserve Bank will extend the collateralised liquidity support, which is currently available till 7.45 pm on NEFT working days, round the clock," the RBI announced in its Monetary Policy Review meet.

Currently, NEFT fund transfer service operated by the RBI as a retail payment system is available from 8.00 am to 7.00 pm on all working days of the week. Experts believe that the 24x7 availability of NEFT islikely to revolutionise the retail payments system in the country.

Governor Shaktikanta Das-led RBI Monetary Policy Committee (MPC) also cut repo rate by 25 basis points to 5.15 per cent from 5.40 per cent. The Reverse repo rate has also been adjusted to 4.90 per cent and bank rate at 5.40 per cent, accordingly.

Also Read | RBI Cuts Repo Rate By 25 Basis Points, GDP Outlook For 2019-20 Revised To 6.1 Per Cent

This is the fifth consecutive rate cut this year by RBI to support government measures for boosting economic activity amid benign inflation. The RBI lowered its key lending rate or the repo rate by 25 basis points (bps), which would take cumulative cuts so far this year to 135 bps.

Below are other key highlights of the RBI's monetary policy statement:

• Repo rate or short-term lending rate reduced by 25 bps to 5.15 pc
• GDP growth forecast lowered for current fiscal to 6.1 pc from 6.9 pc earlier
• RBI continues with its accommodative monetary stance to revive economic growth
• Government stimulus measures to help strengthen private consumption and spur investments
• Continuing slowdown warrants intensified efforts to restore growth momentum
• Retains retail inflation projection for second half of year at 3.5-3.7 pc
• RBI notes monetary transmission has been staggered and incomplete
• Foreign exchange reserves stood at USD 434.6 bn on Oct 1, up USD 21.7 bn over March-end 2019
• All members of rate-setting Monetary Policy Committee (MPC) voted for rate cut
• Next monetary policy review meet scheduled during December 3-5, 2019