Representation regarding payment of arrear on revision of pension- 60% thereof

Representation regarding revision of pension of Pre-2006 pensioners

RBI-Frequently Asked Questions (FAQ) on National Electronic Funds Transfer (NEFT) System

Q.1. What is NEFT System?

Ans National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch.

Q. 2. Are all bank branches in the system part of the funds transfer network?

Ans No. As on July 20, 2008, 46363 branches of 87 banks are participating. Steps are being taken to widen the coverage both in terms of banks and branches.

Q.3. Whether the system is centre specific or has any geographical restriction?

Ans No, there is no restriction of centres or of any geographical area inside the country. The system uses the concept of centralised accounting system and the bank's account, that are sending or receiving the funds transfer instructions, gets operated at one centre, viz, Mumbai only. The individual branches participating in NEFT could be located anywhere across the country, as detailed in the list provided on our website.

Q.4. What is the funds availability schedule for the beneficiary?

Ans The beneficiary gets the credit on the same Day or the next Day depending on the time of settlement.

Q.5. How does the NEFT system operate?

Step-1: The remitter fills in the NEFT Application form giving the particulars of the beneficiary (bank-branch, beneficiary's name, account type and account number) and authorises the branch to remit the specified amount to the beneficiary by raising a debit to the remitter's account. (This can also be done by using net banking services offered by some of the banks.)

Step-2: The remitting branch prepares a Structured Financial Messaging Solution (SFMS) message and sends it to its Service Centre for NEFT.

Step-3: The Service Centre forwards the same to the local RBI (National Clearing Cell, Mumbai) to be included for the next available settlement. Presently, NEFT is settled in six batches at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays

Step-4: The RBI at the clearing centre sorts the transactions bank-wise and prepares accounting entries of net debit or credit for passing on to the banks participating in the system. Thereafter, bank-wise remittance messages are transmitted to banks.

Step-5: The receiving banks process the remittance messages received from RBI and effect the credit to the beneficiaries' accounts.

Q.6. How is this NEFT System an improvement over the existing RBI-EFT System?

Ans The RBI-EFT system is confined to the 15 centres where RBI is providing the facility, where as there is no such restriction in NEFT as it is based on the centralised concept. The detailed list of branches of various banks participating in NEFT system is available on our website. The system also uses the state-of-the-art technology for the communication, security etc, and thereby offers better customer service.

Q.7. How is it different from RTGS and EFT?

Ans: NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and works on Net settlement, unlike RTGS that works on gross settlement and EFT which is restricted to the fifteen centers only where RBI offices are located.

Q.8. Any limit on the amount of individual transaction?

Ans There is no value limit for individual transactions.

Q.9. What about Processing Charges/Service Charges?

Ans While RBI has waived the processing charges till March 31, 2009, levy of service charges by banks is left to the discretion of the respective banks. The bank-wise details of charges levied are available on the RBI website.

Q.10. How will I know which are the branches participating in the NEFT?

Ans RBI publishes the list of bank branches participating in the NEFT on its website i.e. https://www.rbi.org.in/scripts/neft.aspx

Q.11. What is IFS Code (IFSC)? How it is different from MICR code?

Ans Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch. The MICR code has 9 digits to identify the bank-branch.

Q.12. How I will know, what is the IFS Code of my bank-branch?

Ans RBI had since advised all the banks to print IFSC on cheques leaves issued to their customers. You may also contact your bank-branch and get the IFS Code of that branch.

Q.13. Whom I can contact, in case of non-credit or delay in credit to the beneficiary account?

Ans Contact your bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted on nefthelpdeskncc@rbi.org.in or write to -

The General Manager,
Reserve Bank of India,
National Clearing Centre First Floor,
Free Press House
Nariman Point
Mumbai – 400 027

Q.14. Is it necessary to have a bank account to originate the NEFT transaction?

Ans Yes, NEFT is an account to account funds transfer system.

Q.15. Is it necessary that the beneficiary should have an account at the destination bank-branch?

Ans Yes, NEFT is an account to account funds transfer system.

Q.16. Can I receive foreign remittances through NEFT?

Ans This system can be used only for remitting Indian Rupee among the participating banks within the country.

Q.17. Can I send remittances abroad using the NEFT?

Ans No

Q.18. Can I originate a transaction to receive funds from another account?

Ans No

Q.19. Can I send/receive funds from/to NRI accounts?

Ans: Yes, subject to applicability of provisions of FEMA

Q.20. Would the customer receive an acknowledgement of money credited to the beneficiary?

Ans: No, however electronic acknowledgement is generated for the customer that his money is received by the beneficiary at the sender branch.

Q.21. Would the remitting customer get back the money if it is not credited to the beneficiary’s account?

Ans: Yes, the remitting customer gets back the money if it is not credited to the beneficiary account.

Q.22. Till what time NEFT service window is available?

Ans: There are six settlements at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays.

Q.23. What is the essential information that the remitting customer would have to furnish for the remittance to be effected?

Ans: The essential information that the remitting customer has to furnish is:

• Beneficiary details such as beneficiary name and account number


• Name and IFSC of the beneficiary bank branch.

Q.24. Is there any way a remitting customer can track the remittance transaction?

Ans: The remitting customer can track the remitting transaction through the remitting branch only, as the remitting branch is informed about the status of the remitted transactions.

USD Denominated Cheques–Improvements in collection process - UCBs

RBI/2008-09/350
UBD (PCB). Cir. No. 33/16.26.00/2008-09

January 14, 2009

The Chief Executive Officers of all
AD I and AD II UCBs

Dear Sir /Madam

USD Denominated Cheques–Improvements in collection process - UCBs

Given the number of instances of customer complaints on delay in collection of USD denominated cheques, Reserve Bank conducted a sample study of collection practices followed by banks to explore feasibility of reducing the time lag for collection of such cheques.

2. Based on the feedback, it has been decided that Authorised Dealer UCBs may initiate steps as detailed below to provide customer friendly collection arrangements: -

i) UCBs shall make the US Dollar currency cheque collection scheme transparent and a part of their regular cheque collection policy. Various modes of collection along with the time period and charges for each mode should be appropriately covered therin.

ii) The policy shall be widely disseminated and displayed on the notice board of branches / web site.

iii) Customer shall be suitably educated / informed of the collection mode based on need, convenience and cost, including the advantages of using electronic modes of payment.

iv) UCBs may review their collection policies on an on-going basis and explore using faster methods of realization such as leveraging on Check-21 facility in the US for saving in transit time, direct deposit mechanism with correspondent bank (CB), etc., for early collection of USD cheques.

v) There is scope for reducing the transit time for moving the cheques from branches to CBs. The transit period may be reduced by 2 to 3 days by sending cheques on the same day from branches to centralized pooling branch and from centralized pooling branch to CB. Use of efficient and reliable courier / postal service may help in reducing the transit time.

vi) UCBs may explore the possibility of forming / pooling the cheques to a service bureau to avail benefit of imaging, reduced infrastructure costs, etc., with the intent of saving in transit / collection time.

vii) Service charges for collection of USD cheques shall be decided by UCBs and be made a part of their USD cheque collection policy.

viii) UCBs shall pay interest on the amount of cheques from the date of sighting credit in their nostro account till such time the customer account is credited. Interest shall be paid at saving bank rate calculated on the amount of proceeds credited to the customer's account.

ix) Compensation by way of additional interest shall be paid to the customer for delay in collection beyond the declared collection period as per the bank's policy, without the customer requesting for the same and such interest shall be on "step-up basis" for the period of delay.

x) UCBs may formulate a policy on 'instant' credit for small value cheques as a part of their USD cheque collection policy.

xi) Complaints from customers alleging delay in collection / receipt of proceeds or otherwise shall be properly examined and redressed.

xii) UCBs shall continuously evaluate the industry best practices and adopt such practices wherever feasible.

3. Please acknowledge receipt to the concerned Regional Office of the Reserve Bank of India.

Yours faithfully

(A. K. Khound)
Chief General Manager

Reconciliation of transactions at ATMs failure-Time limit

RBI/2008-2009/ 380 DPSS No. 1424 / 02.10.02 / 2008-2009

February 11, 2009

The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks /. District Central Co-operative Banks

Madam / Dear Sir

Reconciliation of transactions at ATMs failure-Time limit

The use of Automated Teller Machines (ATMs) for cash withdrawal has been increasing in the country. However, of late, we have been receiving a number of complaints from bank customers, regarding debit of accounts even though the ATMs have not disbursed cash for various reasons. More importantly, banks take considerable time in reimbursing the amounts involved in such failed transactions to card holders. In many cases, the time taken is as much as 50 days. 2. After examining the procedures involved in verification and resolution of such complaints, the Reserve Bank has concluded that delay of the magnitude indicated above is not justified, as it results in customers being out of funds for a long time for no fault of theirs. Moreover, this delay can discourage customers from using ATMs. Therefore, it was decided that, to start with banks shall reimburse to the customers the amount wrongfully debited within a maximum period of 12 days from the date of receipt of customer complaints. This decision was communicated to the banks vide our circular RBI/DPSS No. 711/02.10.002/2008-09 dated October 23, 2008. It is, however, observed that banks have not taken adequate care to percolate these instructions to their branches as evident from continuing complaints in this regard. 3. Banks are, therefore, once again advised to strictly adhere to the time discipline indicated in the above mentioned circular. Non-adherence to the time discipline shall attract penalties prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007). 4. This directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007). 5. Kindly acknowledge the receipt.

Yours faithfully

(G. Padmanabhan) Chief General Manager

Sexual harassment at work: Govt to act

The sexual harassment at workplace bill 2008 is under the consideration of the government, the Lok Sabha was told on Friday.

Replying to a question, Minister for Women and Child Development Renuka Chowdhury said the draft 'The Protection of Women Against Sexual Harassment at Workplace Bill' has been submitted to the government for further action.

"The draft bill submitted by the National Women for Commission is under the consideration of the government," she said.

"As per the draft, a workplace has been defined as any department, organisation, undertaking and establishment or branch which is established, owned or controlled, financed by funds provided directly or indirectly by the appropriate government or the local authority or a corporation or a cooperative society," the minister said.

She said besides this, any private sector organisation, institution, unit or service provider carrying on commercial, professional or industrial activities has been defined as a workplace.