India this week joined a select club of countries offering fund transfers around the clock, a move that will give banks more flexibility to manage their liquidity requirements, the central bank said.
The National Electronic Funds Transfer sees transactions worth $11.3 billion daily and the round-the-clock service is expected to boost online transactions for customers and will go a long way in bolstering digital payments, according to the Reserve Bank of India. Banks have been directed to waive NEFT transfer fees from January 1 for savings-account customers who use the service.
Besides, the central bank will also hold additional money market operations for banks under the fixed-rate repurchase agreements and the marginal standing facility windows late at night.