New Delhi: Taking a series of steps to boost the adoption of digital payments, RBI on Wednesday said the National Electronic Funds Transfer (NEFT) facility will be available 24×7, the scope of utility bill payments will be expanded, and more players will be encouraged in the retail payment space.

Beginning December, online payments through NEFT will be available round-the-clock. As of now, the transfer of funds via NEFT can only be during banks’ working hours. The facility of electronic transfer of funds is available from 8 am to 7 pm on all working days, except the second and the fourth Saturday of the month. While there is no minimum cap on fund transfer through NEFT, the upper limit for transfer is 2-5 lakh, depending on the bank.

“The move (by RBI) is a step towards reducing the number of cheques while making payments. Reducing cheque-based payments also increases a business’ efficiency. Earlier, RBI removed NEFT and RTGS (Real Time Gross Settlement System) charges, making such transactions cheaper. This will certainly promote digital payments for business users,” Deepak Sharma, chief digital officer, Kotak Mahindra Bank, said.

The Narendra Modi-led National Democratic Alliance (NDA) government’s digital payments agenda got a renewed push after demonetization—the currency scrapping exercise in November 2016. The government and the banking regulator have been trying to incentivize digital payments further, with a vision to make India a ‘less-cash’ society through a bunch of online payment options for individuals.

Last month, RBI had scrapped the levy on online transactions, such as NEFT and RTGS, to make fund transfers cheaper. RBI levies a minimum charge on banks for NEFT- and RTGS-based transactions and banks thereafter pass on the charges to customers.

“As mentioned in the Payment System Vision 2021 document, the Reserve Bank will make available the NEFT system on a 24×7 basis from December 2019. This is expected to revolutionize the retail payments system of the country,” RBI said in a release on Wednesday, while announcing its bi-monthly monetary policy. The six-member monetary policy committee on Wednesday lowered its repo rate by an unconventional 35 basis points (bps) to 5.4%.

In 2018-19, 2.3 billion NEFT transactions worth 227.93 lakh crore were recorded, according to the central bank.

“The need for extending the availability of NEFT on a 24×7 basis to facilitate beyond the banking hour fund transfer needs would be examined. Need to add more features to NEFT (faster settlements, staggered payments) will also be examined,” according to RBI’s Payment System Vision 2021 released in May.

The banking regulator also plans to add other categories of recurring payments through the Bharat Bill Payment System (BBPS) that enables a customer to pay several bills such as telephone, water, gas, direct-to-home (DTH) and electricity at a single location—electronic or physical.

“In order to leverage the advantages of the BBPS and harness its full potential, it has been decided to permit all categories of billers (except prepaid recharges) who provide for recurring bill payments to participate in BBPS on a voluntary basis,” RBI said, adding detailed instructions will be issued by the end of September.

BBPS payments can be made using cash, cheques as well as through any digital mode of payment such as internet banking, debit, credit card among others. Bill aggregators and banks function as operating units and carry out these payment transactions for customers.

“Apart from digitization of cash-based bill payments, these segments would also benefit from the standardized bill payment experience for customers, centralized customer grievance redressal mechanism, prescribed customer convenience fee and the like,” it said.

“The furtherance of payment reforms is likely to help in faster digitization of the Indian economy and making India a ‘less-cash’ society. Allowing voluntary access to recurring billers is likely to improve customer experience as well as allow billers to innovate on analytics-based payments solutions.” Monish Shah, Partner, Deloitte India said.

The central bank also decided to open up to more players to encourage innovation and competition, while minimizing risks in the sector.

It has decided to extend ‘on-tap’ facility to three retail payments systems—Bharat Bill Payment Operating Unit, Trade Receivables Discounting System and White Label ATMs (WLAs) or non-banking entities that have a licence to open ATMs.

“In order to benefit from diversification of risk and also to encourage innovation and competition, it has been decided to offer ‘on tap’ authorisation to entities desirous to function/operate/provide platforms for-Bharat Bill Payment Operating Unit (BBPOU), Trade Receivables Discounting System (TReDS) and White Label ATMs (WLAs),” RBI said.

“Today, non-banks are the backbone for creation of a strong payment ecosystem with more than 50% of the payment flows driving through the payment networks and services provided by these players. With on tap availability of licences for BBPOU and opening up of categories, hope to see more private players entering the fray for different use-cases of recurring billing which should benefit the customers manifold,” Dewang Narella, chief executive officer of payment service provider Atom Technologies said.

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  1. Vijay Goyal

    *देश की मजबूत अर्थव्यवस्था को इस घोर मंदी की ओर जाने के मुख्य कारण जिनके तत्काल समाधान की जरूरत है।*

    (1) देश मे बैंको के कारोबार को 2nd व 4th शानिवार को छुट्टी घोषित होन के कारण ट्रेड व इन्डस्ट्री की फण्ड की कॉस्ट में बेतहाशा वृद्धि हुई है। वर्तमान में एक साल में बैंक 86 दिन काम काज नही करते है (52sunday+24 शनिवार + 10 अन्य छुटियाँ) 86÷365=23.56% वर्किंग कैपिटल की effective ब्याज की दर बड़ जाती है ।अगर 12%की ब्याज पर बैंक से लोन लिया है तो effective ब्याज दर 14.827 % पड़ती है।
    इस समस्या के सुझाव के लिये 24×7 365 days नेट बैंकिंग के माध्यम से तत्काल RTGS व NEFT की सुविधा को शुरू करने की जरूरत है।
    ऐसा करने से बैंको पर काम का दबाव भी कम होगा। और अर्थव्यवस्था की काफी गति मिलेगी । अधिकांश सरकारी व बड़े उधोग MSME उद्योगों को उनका रॉ मटेरिअल एडवांस पेमेंट लेकर देते है बैंको की इन छुट्टियों के कारण ये MSME उधोग अपना उत्पादन पूरी उत्पादन छमता के अनुरूप नहीं ले पाते है।
    नीति आयोग व वित्तमंत्रालय व RBI को तत्काल इस संबंध में आदेश जारी करें । ताकि मंदी को ओर जाती अर्थव्यवस्था की कुछ राहत मिल सके ।

    (2)देश मे MSME उधोगो के पास ऑफिसियल प्रोमोटर कैपिटल/ इक्विटी की कमी है
    जिसके कारण उनकी बैंक से लोन लेने की पात्रता नही बन पाती है।
    (1) तत्काल इनकम टैक्स नियमो में पूर्व की तरह सुविधा दी जानी चाहिए कि कोई भी व्यक्तिगत assesse ₹50 लाख की आय फूल रेट ऑफ टैक्स जो वर्तमान में 30% है अपनी आय इनकम from unexplained source head के तहत तत्काल टैक्स पटा कर घोसित करता है तो उसे कोई भी शो कॉज नोटिस जारी नही किया जाएगा और उसे आधिकारिक मान्यता होगी ।
    अगर यह सुविधा दी जाती है तो करीब ₹75 हजार करोड़ की रकम सिस्टम में आने की सभावना है जिससे बैंको का लोन का उठाव ₹3 लाख करोड़ अतिरिक्त बढेगा व सरकार को भी करीब ₹3 लाख करोड़ प्रति वर्ष अतरिक्त GST व अन्य टैक्स राजस्व के रूप में गारंटेड मिलेगा।
    देश मे आर्थिक गतिविधियों में तेजी के साथ साथ रोजगार व स्वरोजगार के नए अवसर भी मिलेगे।

    (3)लोगों को लोनएबल ( loan का पात्र बनाने के लिये) तत्काल पैतृक सम्पतियों के बटवारे में लगाने वाली स्टाम्प ड्यूटी अधिकतम ₹2000 व रजिस्ट्रेशन फी भी अधिकतम ₹2000 तत्काल की जानी चाहिए । इस तरह के सभी पेंडिंग मामलो व नए मामले की क्लियर टाइटल डीड 30 दिनों में नामांतरण साथ सभी राज्य सरकारों की जारी करने के दिशा निर्देश सभी पंजीयक कार्यालयों को तत्काल जारी करने चाहिए ताकि अर्थवयवस्था को गति दी जा सके।
    (4) कॉरपोरेट के खिलाफ शेअर कैपिटल के विभिन्न मामले जो विभिन्न अदालतों में पेंडिंग है तत्कालीन सरल नियमो व नियमन के कारण व सभी सरकारी एजेंसियों व अधिकारियों व कार्यालयों की मूक सहमति से उठाए गए कदम थे ।
    उन सभी मामलो पर लेनिएंट व्यू लेने की जरूरत है नही तो बैंको का करीब ₹8 से ₹10 लाख करोड़ का और नया NPA आगामी 3 सालो में होने को प्रबल संभाबना है। व देश की अर्थव्यवस्था पूर्णत: गर्त में चली जावेगी ।
    (5) NCLT में जिस तरह ₹10000 करोड़ के बकाया उधोग ₹2000 करोड़ में नए चंद हाथों को सौपे जा रहे है। यह देश मे कारोबारी माहौल को खराब कर रहे है ।
    इसके बजाय पुराने प्रोमोटर्स को ब्याज की रकम माफी व प्रिंसिपल loan का रिस्ट्रक्चरिंग करना ज्यादा सार्थक कदम होगा।

    आपश्री की सार्थक प्रतिक्रिया ,सुझाव व विचार आमंत्रित है।

  2. Vijay Goyal

    RBI has to Start e-PDC (Electronic Post Dated Cheque) facility to increase the use of Net Banking.
    To increase the use of Net Banking Banks have to introduce new Product e-PDC (Electronic Post Dated Cheque) facility. as in our country maximum bank transaction are on paper cheque basis. These cheques are also giving legal security to the sellers of the goods.
    So I suggest bank has to start e-PDC facility on their net banking software, as soon as we issue e-PDC the same is reflected in beneficiary account and print of this cheque should be as good as the paper cheque if legally needed.
    1 ) By promoting Net banking we are Keeping our Earth Green and are saving Trees (papers).
    (2)In our county (India) we are dependent to approx. 80% Import of Petrol(Fuel) . this will also reduce the oil import bill of country to around Rs. 1000 crors/Annam. Alternately saving of Foreign Exchange.
    (3) Reduction of fuel (petrol) consumption also help to reduce Carbon Foot Print.
    (4) On line transactions also help to reduce traffic on Roads
    (5) online transaction also help to reduce fraud made in Drafts & cheque credit.
    (6) In broader way Net banking is also helpful to increase banks Profitability by reducing their manpower requirement, Working Space requirement, stationary requirement etc.
    (7) Faster credit of fund will also help trade & industry for additional availability of their cash flow i.e availability of clear funds. Ultimately help to increase country’s GDP .

    I request Concern officers of RBI & Govt. of India, Keeping above facts in mind to increase RTGS/NEFT timings from 00:30 AM to 11:45 PM on 24×7 Basis.
    As our RBI & Banks are already equipped with infrastructure to start 24×7 banking Of RTGS/NEFT/ECS/ Scheduled Transfer Facility .
    This is pending due to No one has courage to Bring in Our Finance Minister & Prime Minster Notice.
    Non availability of 24×7 bank is playing Key Roll for increasing Cash Transaction & Corruption also


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