24X7 NEFT from December: RBI

The ReserveBank of India (RBI) on Wednesday announced that it will allow round-the-clockfund transfers through National Electronic Funds Transfer (NEFT) from Decemberthis year. "This is expected to revolutionise the retail payments system of thecountry," said an RBI statement.

It maybe mentioned here that NEFT is available for customers from 8 am to 7 pm on allworking days except second and fourth Saturdays of a month. It is used for fundtransfers 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.