Individuals will be able to transfer money online any time as the Reserve Bank of India (RBI) has allowed 24-hour National Electronic Funds Transfer (NEFT) facility throughout all 365 days in a year.

This will provide customers with more flexibility to make payments at any time compared to the 8 am-6:30 pm deadline applicable till now. NEFT services, which were only available on days when banks are open, will now operate round the clock on all days.

People will also be able to transfer money online to other individuals on holidays, enabling them to make urgent transfers without having to wait for banks to open.

The move is expected to further promote digital transactions in India as bank customers will now be able to transfer amounts higher than IMPS via NEFT on any given day. So far, only IMPS facility was available on all days, but with online money transfer capped at Rs two lakh.

Reserve Bank of India (RBI) also asked banks to update their systems to provide smooth NEFT facility round the clock for customers.Read More..