NEFT SMS/Email - NEFT New Features from 01/March/2010 – Part II

One of the main reasons for the NEFT Volumes not to ZOOM was the absence of any Message to the Sender that the Beneficiary’s account has been credited or the funds returned back to his account.

Around 60% of the customer complaints either to Reserve Bank of India, or to their respective Banks was the request for a confirmation message that the NEFT Funds have been credited as per the Reserve Bank of India’s timelines.

The major difference between RTGS and NEFT being the Value, in RTGS the transactions was closely monitored at all levels. However, as NEFT has been designed for High Volumes, it is virtually impossible to manually monitor each transaction.

To overcome the lacunae of the Positive Confirmation, Reserve Bank of India, in it’s latest guidelines has sought to introduce the facility of Positive Confirmation.

In lay-man terms, the process flow is explained in the below chart.

The main highlights are:-

01)                      The NEFT Ordering Customer will receive a SMS/Email, on credit/non-credit of the funds to the Beneficiary Account.

02)                     Reserve Bank of India, is clear that the positive confirmation or negative confirmation is to be transmitted to the Ordering Customer.

03)                     There is a detailed process flow for CBS Branches as well as Non-CBS Branches.