(IANS) The Reserve Bank of India (RBI) has decided to provide an additional collateralized intra-day liquidity facility for the smooth operation of payment system National Electronic Funds Transfer (NEFT) on a round-the-clock basis from December 16, the central bank said.
The move will aid the payment system to become operational on a 24×7 basis.
The facility is used to electronically transfer funds from one account to another of banks which are members of this system.
“… In order to facilitate smooth settlement of NEFT transactions in the accounts of the member banks maintained with the Reserve Bank in a 24×7 environment, it has been decided to provide an additional collateralized intra-day liquidity facility, to be called Liquidity Support (LS),” RBI said in a notification.
“The LS facility will be available for facilitating NEFT settlements on a 24×7 basis. The LS facility will operate as per the same terms and conditions as the Intra-Day Liquidity (IDL) facility,” the notification said.