24×7 NEFT allowed by RBI in India and banks ask to remove transaction fees. NEFT earlier used to work only during banking hours. Any transaction done via NEFT after banking hours used to take place on next day banking hours. With UPI and IMPS offering round the clock money transfer service it was up to RBI step up its game a little. Moreover, NEFT which occurs in batches needs an upgrade. NEFT transactions happen in every half an hour. It doesn’t happen in real-time like other payment systems. So, an NEFT will not happen immediately like a UPI or IMPS.
NEFT soon to be the most preferred way to transact
RBI has not made any announcement on the time it will take for an NEFT to take place. As UPI and IMPS transactions take place the second the transaction completed. Since there was a delay earlier when it used to take 30 minutes to a couple of hours for an NEFT to complete. Will there be an improvement in the actual time taken for this mode of transaction is still awaited. Now the transaction system going 24×7 after this notification. We expect this to become a preferred choice to do transactions. Since RBI has asked banks not to charge any transactions done on this medium.
UPI and IMPS do have charges which are quite small but none the less existent. UPI charges in paise whereas IMPS charges are Rs 2.5 per transaction to Rs 25. Depending upon the amount that the transaction carried out for. This move makes India one of the elite countries to have its own 24×7 payment system. Earlier no such system was available in India. While UPI and IMPS have smaller cash transaction limits NEFT has a limit of Rs 10 Lakhs. This will make it the most popular mode of transaction from now on. RTGS which does not have a cash limit may also become 24×7 soon.