NEFT will will go live from November 21, 2005

National Electronic Funds Transfer (NEFT) system is an electronic clearing system will go live with effective from November 21, 2005. NEFT will cover all the banks which are presently participating in the Special Electronic Funds Transfer (SEFT) clearing. NEFT is on the Structured Financial Messaging Solution (SFMS) platform and is Public Key Infrastructure (PKI) enabled. Banks are advised to be ready with SFMS so as to join NEFT at an early date.

2. RBI plans to migrate all the present SEFT banks to NEFT by December 15, 2005. NEFT will be increased to two clearings per day (12 Noon and 3.00 PM) from December 15, 2005 and three clearings per day from January 1, 2006 (10.30 AM, 12 Noon and 3.00 PM). Accordingly, the frequency of the SEFT and EFT Clearings will be reduced to one clearing per day at 10.30 AM and 3.00 PM respectively from December 15, 2005.

3. As NEFT would be serving all the bank customers using SEFT, the SEFT system would be discontinued from January 1, 2006, while one EFT clearing will continue till further notice.

4. Banks which fulfill the eligibility criteria for participation in RTGS are invited by RBI to participate in the NEFT.

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