RTGS and NEFT, the two predominantly ePayments systems in India are closed on 18/04/2014. The holiday is on account of ‘Good Friday’.
On 18/04/2014, very Banks in very few states are open. Gujarat, Rajasthan and Chhattisgarh are amongst the handful of states which are open on 18/04/2014.
The next day i.e. Saturday April 19, 2014 is a half working day for RTGS and NEFT Payment systems.
ePayment transactions already in Queue on the banks online banking channels would move first on 19/04/2014. As and when the physical bank branches start to open, transactions from the bank branch channels would also join the ePayment channels.
Reserve Bank of India, has advised all Bank Participants of RTGS/NEFT network that RTGS/NEFT will function as usual on September 15, 2013 i.e a Sunday.
The main reason is to enable Indian tax payers to remit the Advance Tax to the Government. As September 15, 2013 is a Sunday, this decision has been taken.
However, as this facility has not been adequately advertised, there would be very minimal RTGS/NEFT transactions relating to Tax payments.
However, as a Special Clearing is being conducted to facilitate accounting of Government receipts (advance taxes under income tax and corporate tax), few bank customers might execute RTGS/NEFT transactions.
To improve its image amongst Indian employees, EPFO (Employee Provident Funds Organization) has decided to increase the settlement claims within 3 days from the present 15% to 70%
EPF—commonly called PF—is a retirement benefit scheme that is available to the salaried employees. Both employees and employer contribute to the Fund at the ‘rate of 12%’ of the basic wages, dearness allowance and retaining allowance (if any) payable to employees per month. Thus, the total contribution to the Fund is 24%.
Large corporate have their PF Trust, but many other corporate do not have the expertise to handle PF Trust complexities. Hence, they prefer to be part of EPFO, which has been set up Government of India.
The body is managing a corpus of around Rs 5 lakh crore with a subscribers’ base of over five crore.
Way back in April 2010, NEFT was chosen as the preferred mode to settle claims. In March 2013, EPFO’s Banking and Finance Division clarified that NEFT was to be the preferred mode, irrespective of the settlement amount, if the Members bank account is NEFT enabled, the settlement has to be through NEFT only.
20 Star Offices of EPFO settle 60% of the claims within 3 days. Overall Pan-India rate is 16%, which the EPFO now wants to push it to 70%
This will be a major boost to it’s image. Is this difficult? No, ‘where there is a will, there is a way’.
The adopted path :
- Meeting of all its Zonal Heads on July 5th, 2013.
- The body is also in the process of introducing a facility where claimants would be able to apply online for transfer and withdrawal of their PF from July 1.
- EPFO is setting up a central clearance house which will be operational on July 1. This will enable subscribers to apply online for settlement of withdrawal and transfer of funds claims.
- The new facility will also enable subscribes to track online the status of their applications for transfer and withdrawals.
- Under the new system, the onus of verifying the details of the PF account from previous employers would be on the EPFO.
- At present, employees have to get their applications verified from their employers for settlement of claims.
Reserve Bank of India, DPSS vide Notification No Date: Mar 21, 2013, RBI/2012-13/454 DPSS.CO.CHD.No./1674/ 03.01.03/2012-2013 dt.21/03/2013, has informed Indian Banking customers that RTGS and NEFT will function on 29/03/2013 and 31/03/2013.
Yes, you are reading it right. 29/03/2013 is Good Friday, and Banks in major parts of India are closed. 31/03/2013 is Sunday. In the larger public interest, RTGS and NEFT will be open on Sunday.
This will be first occasion since the launch of RTGS that RTGS system will be open on a Sunday.
The exact working timings will be known in the next couple of days. Bank’s IT Teams will be scrambling around to ensure that their IT Applications are tuned to handle RTGS and NEFT on 29th march as well as 31st march. It will be a major challenge not only for Bank staff but also for bank customers to make full use of working window.
Member banks are also advised to be in readiness to participate in the Centralised Payment Systems (RTGS and NEFT) on March 29, 2013 and March 31, 2013. A separate broadcast message in this regard will be issued through the respective system.
Cheers to RTGS/NEFT. As it is IMPS too will be open.