The Reserve Bank of India (RBI) on Wednesday announced that it will allow round-the-clock fund transfers through National Electronic Funds Transfer (NEFT) from December this year. “This is expected to revolutionise the retail payments system of the country,” said an RBI statement.
It may be mentioned here that NEFT is available for customers from 8 am to 7 pm on all working days except second and fourth Saturdays of a month. It is used for fund transfers up to Rs. 2 lakh.
On the other hand, the RBI has cut repo rate to 5.40 per cent from 5.75 percent on Wednesday. RBI’s Monetary Policy Committee (MPC) headed by Governor Shaktikanta Das delivered its fourth repo rate cut in a row to give a fillip to the economy. “The Central bank has been pre-emptive in its actions on rates,” said Shaktikanta Das, adding, “RBI has always provided adequate liquidity to the system.”
The repo rate is the rate at which RBI lends to banks generally against government securities. Repo rate is a key determinant for customers availing loans from banks.