No RTGS and NEFT today, banking payment system closed on April 1

Sandhya Dangwal
The new directive by the RBI means that that electronic fund transfer channels like RTGS and NEFT will remain closed on Saturday, with no effect on general debit and credit card transactions.

Mumbai, April 1: The Reserve Bank of India (RBI) in it recent release sighted a change from its earlier directive and informed that all payment systems will remain closed on April 1. In its earlier release dated March 25, 2017, the RBI stated that all payment systems, including Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer  (NEFT) would operate, as on a normal working day, from March 25 to April 1, 2017 (including Saturday, Sunday and all holidays). The new directive means that that electronic fund transfer channels like RTGS and NEFT will remain closed on Saturday, with no effect on general debit and credit card transactions.

However, on reconsideration, it has been decided that all payment systems will remain closed on April 1, 2017. It also mentioned that a separate broadcast message in this regard will be issued through the respective system to the member banks. In its release, the RBI in its press release mentioned “With a view to facilitate accounting of all the government transactions for the current financial year (2016-17) by March 31, 2017, it has been decided that all payment systems, including RTGS and NEFT  would operate, as on a normal working day, during the period  March 25 to April 1, 2017 (including Saturday, Sunday and all holidays).”

The Apex Bank on March 23 had instructed banks about conducting special clearing exclusively for government transactions on March 30-31. The directive mentioned, “With a view to facilitate accounting of all the government transactions for the current financial year (2016-17) by March 31, 2017, it has been decided to conduct special clearing at all clearing houses across the country on March 30 and 31, 2017.” Further, the notification made it mandatory for banks to participate in the special clearing operations. In its press release, it stated that it is mandatory for all banks to participate in the special clearing operations on these two days. “All member banks of the Clearing House are required to keep their inward clearing processing infrastructure open during the Special Clearing hours and maintain sufficient balance in their clearing settlement account to meet settlement obligations arising out of the Special Clearing. However, participation in the outward clearing is left to banks depending upon the instruments received by them towards credit-to/payment-from Government accounts”, the release mentioned.