DPSS (CO) EPPD No.2612/04.03.01/2016-17
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
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.
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.