Reserve Bank of India is concerned that electronic transfer guidelines are being ignored

The Reserve Bank of India (RBI) has expressed serious concerns over complaints regarding delays in affording credits as well as the return of transaction. The RBI in a circular to participants has urged participants in electronic transfer system to strictly adhere to RBI guidelines. The services involved are the various electronic payment products like Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), National Electronic Clearing Service (NECS) and Electronic Clearing Service (ECS). Member banks were also found not to be paying the required interest for delayed credits to beneficiaries’ accounts as provided for in the Procedural Guidelines. The RBI said that ‘this results in inconvenience to customers and loss of credibility in the system and adversely impact the growth of electronic payment systems in the country.

RBI said various electronic transfer systems have been growing in terms of acceptability and coverage and for increasing the pace of migration, it was essential that the credibility of the electronic payment systems was upheld and member banks using the products strictly comply with the procedural guidelines and circulars instructions issued by RBI from time to time, in both letter and spirit.

“Keeping in view the seriousness of the issue and to ensure proper and efficient management of these systems, all member banks participating in the electronic payment systems viz, RTGS, NEFT, NECS and ECS variants are advised to strictly adhere to the various provisions contained in the respective Procedural Guidelines as also instructions / circulars / guidelines issued by the RBI from time to time, while handling electronic payment system products” RBI said warning that any violation of these guidelines would attract the punitive consequences as envisaged in the relevant laws.