Current context: RBI has decided that the National Electronic Funds Transfer (NEFT) System shall be made available on a 24x7 basis from 16th December 2019.
a. The Payment and Settlement Systems Act, 2007
b. Banking Regulation Act, 1949
c. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
d. Reserve Bank of India Act, 1934
- This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007.
- With this, all provisions of NEFT procedural guidelines will be applicable for NEFT 24x7 transactions as well.
- The existing discipline for crediting beneficiary’s account or returning the transaction (within 2 hours of settlement of the respective batch) to originating bank will continue.
- NEFT transactions would be done through automated transactions initiated using ‘Straight Through Processing (STP)’ modes, after the usual banking hours of banks.
- The system would be available all-round the year, including holidays.
Question:
Q.1 Under which Act, the RBI has recently issued the directive that the National Electronic Funds Transfer (NEFT) System is made available on a 24x7 basis?a. The Payment and Settlement Systems Act, 2007
b. Banking Regulation Act, 1949
c. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
d. Reserve Bank of India Act, 1934
