New Delhi -°C
Today in New Delhi, India

Jan 26, 2020-Sunday
-°C

Humidity
-

Wind
-

Select city

Metro cities - Delhi, Mumbai, Chennai, Kolkata

Other cities - Noida, Gurgaon, Bengaluru, Hyderabad, Bhopal , Chandigarh , Dehradun, Indore, Jaipur, Lucknow, Patna, Ranchi

Home / Business News / RBI to provide liquidity facility to make NEFT system 24x7

RBI to provide liquidity facility to make NEFT system 24x7

RBI’s move to provide liquidity facility will aid the payment system become operational on a 24x7 basis.

business Updated: Dec 14, 2019 07:57 IST
Indo Asian News Service
Indo Asian News Service
Mumbai
A worker walks past the logo of Reserve Bank of India (RBI) inside its office in New Delhi, India July 8, 2019. REUTERS/Anushree Fadnavis/Files
A worker walks past the logo of Reserve Bank of India (RBI) inside its office in New Delhi, India July 8, 2019. REUTERS/Anushree Fadnavis/Files(Reuters File Photo )
         

The Reserve Bank of India (RBI) has decided to provide an additional collateralised intra-day liquidity facility for smooth operation of payment system National Electronic Funds Transfer (NEFT) on a round-the-clock basis from December 16, the central bank said.

The move will aid the payment system become operational on a 24x7 basis.

The facility is used to electronically transfer funds from one account to another of banks which are members of this system.

“... In order to facilitate smooth settlement of NEFT transactions in the accounts of the member banks maintained with the Reserve Bank in a 24x7 environment, it has been decided to provide an additional collateralised intra-day liquidity facility, to be called Liquidity Support (LS),” RBI said in a notification.

“The LS facility will be available for facilitating NEFT settlements on 24x7 basis. The LS facility will operate as per the same terms and conditions as the Intra-Day Liquidity (IDL) facility,” the notification said.