On 16 December, the Reserve Bank of India (RBI) made NEFT transfers available 24/7.
The NEFT (National Electronic Funds Transfer) is a one-to-one nationwide fund transfer payment system that allows individuals to transfer money from one bank account of any bank branch to another bank account at any bank branch within the country.
Earlier, these transfers would only occur between 8 am to 7 pm only on bank working days. Starting 16 December, you can now use NEFT services on weekends and other bank holidays as well.
While bank customers still have the IMPS provisions that enable instant transfer of funds when compared to NEFT's batch transfers (that occur every half-an-hour), IMPS has a limit of Rs 2 lakh on the transaction amount.
Through the NEFT route, one can transfer as much as Rs 25 lakh per day.
Payments app players in the market, like Paytm, have enabled NEFT transfers using the app, but the limit on such NEFT transfers are set at Rs 10 lakh.
As per the company's statement, Paytm is now the only app in India that has three ways to make transfers- UPI, IMPS and NEFT. It is also the only app that provides digital wallet and card payments services besides fund transfers from bank accounts.
Other payments banks are likely to follow suit.