All about Banking
W.e.f 09/03/2013, the NEFT messages will be released continuously to the destination banks. At present, the messages are piled up at SFMS central server, and were released on the batch settlement timings.
In the new flow, the messages will flow continuously to the destination banks. The destination banks has two options
01) Credit the beneficiary accounts but show the balance under ‘shadow balance’, till receipt of the Batch Settlement Message. Once the Batch Settlement Message is received, the ‘shadow balance’, to be converted to ‘available balance’.
02)Pool the messages at their end and on receipt of Batch Settlement Message, credit the beneficiaries’ accounts.
In my view, majority of the banks will opt for the 2nd option, as it is more customer-friendly and technology-friendly.
Major benefits of the Continuous release of the credit messages envisaged are:
01) No pileup of messages at SFMS central server.
02)Minimal technology disruption at SFMS end or the Banks end.
03)The settlement cycle for some failed transactions like ‘account closed’, ‘no such account’, can be completed in the same batch.
04)Optimum usage of the network, as messages flow continuously.
05) Attract new bulk players to NEFT, as there will be minimal delay between the account debit and the beneficiary account credit.