The apex Bank , Reserve Bank of India has issued a circular regarding changes in timings of National Electronic Funds Transfer (NEFT) on 24*7 basis.
As per the circular , the neft facility will now be available 24*7 basis starting from 16th December 2019 with the first settlement taking place after 00:30 Hours on 16th December 2019.
The important points in the circular are as follows:
- The number of batches will be 48 each of Half Hour every Day
- The first settlement will be done after 00:30 Hrs on 16th December 2019.
- The facility for Electronic transfer on NEFT basis will be available for all the days disregard of any holidays either public or otherwise.
- During Banking hours, NEFT Transaction will be initiated and processed as usual , but after the business hours of banks it is expected to be automated transactions initiated using Straight Through Processing (STP) modes by the banks and financial institutions .
- The present practice of crediting the beneficiary account (Account of transferee or person on whose account payment is done) or returning the transactions to originating (transferor or person from whose account amount is transferred) bank will continue.
- The members bank has to ensure the sending of positive confirmation message for all NEFT credits .
- All the existing provisions of the current National Electronic Funds Transfer procedural guidelines will be applicable for NEFT 24*7 basis transaction as well.
BENEFITS TO ACCOUNT HOLDERS IN THIS FACILITY
The account holder will be benefited by the change in NEFT Timings as in the present condition the transaction initiated through NEFT mode after banking hours will be scheduled for the next working day and the transaction gets completed only after one day their by delaying the transactions .
After this facility , there will be no such situation and the amount will be transferred within a batch of half hour and will be credited to the payee on the same day.
The taxpayers will be enabled to pay GST and other Indirect Taxes in India after business hours of banks also due to this changes in NEFT timings.
IMPACT OF CHANGES IN NEFT TIMINGS
Newly Introduced section in Income Tax Act , 1961 , Section 269SU says that the persons having business more than Rs 50 Crores in the preceding Financial Year shall provide mandatory the option of electronic payment or mode of payment in electronic form other than the mode of payment already given by them to customers from 01st November 2019. Noncompliance of this provision will result in imposition of penalty to the default persons.