In layman terms, the number of Bank Branches on the NEFT as well as the NECS platform should be the same. This is because both NECS as well as NEFT are on the CBS platform.
There are 60,000+branches on the NECS platform, whereas there are 70,000+branches on NEFT.
To minimize the gap between number of bank branches on the NEFT and NECS, RBI has advised all Banks to ensure that their respective Branches which are on CBS and part of NEFT, to take steps to ensure that they are also part of the NECS platform.
As Banks have to submit a time-bound action plan to RBI, the Banks will ensure quick ramping up of their remaining branches to the NECS platform.
In my view, in the long run, Banks would prefer NEFT over NECS, as NEFT has multiple cycles in a day. However, NECS can be a BCP (Business Continuity Plan) tool for NEFT or vice-versa.
Hence, it is all the more important for the number of bank branches on NEFT and NECS to be same.
Re-disseminated by Prashant N. Banker by daytime, Blogger by night.
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