Friday, May 14

India starts round-the-clock payments for banks to manage funds

By Anirban Nag

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 Rs 80,000 crore ($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.

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