The National Electronic Funds Transfer (NEFT) system, which is managed by the Reserve Bank of India (RBI), reached a significant milestone on February 29, 2024. It processed a record-breaking 4.1 crore transactions in a single day, marking the highest number of transactions processed in a day so far.
NEFT is a retail payments system that enables bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis. Unlike real-time gross settlement systems, NEFT transfers do not occur in real-time. Previously, NEFT system settled fund transfers in hourly batches, but since December 16, 2019, it has been functioning on a 24x7x365 basis, with 48 half-hourly batches occurring every day.
The RBI also highlighted the growth of NEFT and Real Time Gross Settlement (RTGS) systems over the past ten years. From 2014 to 2023, NEFT system registered a growth of 700 percent in terms of volume and 670 percent in terms of value. Similarly, RTGS system witnessed a growth of 200 percent in volume and 104 percent in value during the same period.
The RTGS system, which is also managed by the RBI, processed its highest-ever volume of 16.25 lakh transactions in a day on March 31, 2023.
NEFT and RTGS Systems
NEFT and RTGS systems are both managed by the Reserve Bank of India to settle retail and wholesale payments, respectively. NEFT enables customers to transfer funds between NEFT-enabled bank accounts on a one-to-one basis, while RTGS facilitates real-time, gross settlement transfers of large amounts of money.
Conclusion
The National Electronic Funds Transfer (NEFT) system, managed by the Reserve Bank of India, achieved a significant milestone by processing 4.1 crore transactions on February 29, 2024, the highest number of transactions processed in a day so far. NEFT and RTGS systems have experienced substantial growth over the past ten years, with NEFT registering a 700 percent increase in volume and 670 percent increase in value, and RTGS witnessing a 200 percent increase in volume and 104 percent increase in value. These systems play a crucial role in settling retail and wholesale payments in India.