Electronic Transfer Funds NEFT Scheme 2016 Rules News

Electronic Transfer Funds Worldwide

Electronic Transfer Funds NEFT Scheme 2016 New products rules are--National Electronic Funds Transfer System, News of Mobile Banking Services,National Electronic Clearing Services Banks introduced an electronic funds transfer system to facilitate an efficient, secure, econo-mical, reliable and expeditious system of funds transfer and clearing in the banking sector throughout India, and to relieve the stress on the existing paper-based funds transfer and clearing system called National Electronic  Funds  Transfer System (NEFT System).

The parties to a funds transfer under this NEFT System are the sending bank, the sending Service Centre, the NEFT Clearing Centre , the receiving Service Centre and the beneficiary branch. The EFT scheme enables transfer of funds within and across cities and between branches of a bank and across banks.

National Electronic Clearing Services

The objective of National Electronic Clearing Services (NECS) is to facilitate centralised processing for repetitive and bulk payment instructions.Sponsor  banks  shall submit NECS data at a single centre viz. at Mumbai. While NECS (Credit) shall  facilitate  multiple  credits  to beneficiary accounts at destination branch against a single debit of the account of a User with the sponsor bank, the NECS (Debit) shall facilitate multiple debits to destination account holders against single credit to user account.

Mobile Banking Services

Mobile payments is defined as infor-mation exchange between a bank and its customers for financial transactions  through  the  use  of  mobile phones.  Mobile  payment  involves debit/credit to a customer’s account’s on the basis of funds transfer instruction received over the mobile phones.
Only Indian Rupee-based domestic services shall be provided. Use of mobile  banking  services  for  cross border inward and outward transfers is  strictly  prohibited.  Only  banks which have implemented core bank-ing  solutions  would  be  permitted to provide mobile banking services. Banks shall file Suspicious Trans-action  Report  (STR)  to  Financial Intelligence Unit–India (FIU-IND) for mobile banking transactions as in the case of normal banking transactions. To ensure interoperability between banks,  and  between  their  mobile banking  service  providers,  banks shall adopt the message formats like ISO 8583, with suitable modification to  address  specific  needs. Hence, banks offering mobile banking should notify the customers the timeframe and the circumstances in which any stop-payment instructions could be accepted.