RBI eases reporting of NEFT by non-A/C holders

The Reserve Bank said it is discontinuing a two-year-old provision where banks had to submit data pertaining to NEFT transactions by walk-in customers not having an account with them.

  • The Central Bank said banks should continue to maintain the relevant records, adding as and when required, the Reserve Bank can call for ad hoc reports regarding the data.
  • A survey and incognito visits by RBI at bank branches had resulted in introduction of the provision in January 2014. It was slated to be in place for a year.
  • “It was also observed that, in many cases, the officers/staff dealing with the NEFT desk at different branches were not aware of many of the above features of NEFT and customers were not guided properly,” the RBI had said.
  • It had asked banks to educate staff about the NEFT (National Electronic Fund Transfer) process in general and extension of the facility to walk-in customers and charges applicable for the same.

Did You Know?

  • National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer.
  • Under this Scheme, individuals can electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country participating in the Scheme.