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RBI modifies fund transfer system
March, 25th 2008
The Reserve Bank of India has introduced necessary modifications in National Electronic Fund Transfer (NEFT) settlement system to enable all RTGS (real time gross settlement) members, including the banks not having direct clearing membership of Mumbai Clearing House, to participate in the system, according to RBI sources.

In a communication, the RBI has asked all banks without the direct membership of Mumbai Clearing House to make necessary infrastructural arrangements, including installation of SFMS (structured financial messaging system) in consultation with the Institute for Development & Research in Banking Technology.

Once the necessary infrastructural facilities for compliance with NEFT are in place, the banks concerned may contact the National Clearing Cell, Nariman Point, Mumbai, for providing the test facility, the sources add.

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