No payment systems to work on 2nd, 4th Saturday from Sept 1: RBI

Reserve Bank of India (RBI) has said that from September 1, 2015, payment systems will not work on the second and fourth Saturdays of the month, but would operate for the full day on working Saturdays.

This would include Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT) and ECS suite [Electronic Clearing Service (ECS) among others. This is because all scheduled and non-scheduled banks, public, private, foreign, cooperative, regional rural and local area banks, will have a holiday on second and fourth Saturdays from September onwards.

Other payment systems that would not work on these days include Cheque Clearing including the grid based Cheque Truncation System (CTS), Regional Electronic Clearing Service (RECS) and National Electronic Clearing Service (NECS).

The banking regulator said that processing of future value dated transactions with value date falling on second and fourth Saturdays will not be undertaken under RTGS and ECS suite.

Following a pact between public sector bank (PSB) employees and officers with the management, it was decided that all branches in the country will remained closed on all second and fourth Saturdays from July. Subsequently, the government issued a notification enabling the same for all banks.

RBI has however clarified that it would continue to operate fixed rate reverse repo as well as the marginal standing facility (MSF) windows on all working Saturdays and will also operate a fixed rate liquidity adjustment facility (LAF) repo window on all working Saturdays.

The central bank also said that as a regulator of banks, financial markets and payment and settlement systems, it has made supporting changes in the working of some of its operational areas. The above arrangements would be reviewed after six months.

Source
 
Technically NEFT & RTGS requires that banks be open for clearance. So no clearance on holidays. IMPS should work, atleast on private banks.
 
Debit Cards/Internet Banking payments won't be affected. But refunds will take more days if such weekends come in between.
As I said earlier, use IMPS in emergency cases.
 
Tbh, i'm not against this move. i used to work on alternate saturdays and it sucked. i wouldn't work 6 days a week so i feel this move is fair.
 
We were having a discussion about this some days back and the general consensus was that no one cares if banks need to give alternate saturdays off and etc, as long as free ATM usage is increased. And make cash withdrawals from bank (not ATM) upto 10K chargeable to recoup the loss by increasing free ATM usage.

As for the NEFT and etc - this is a backwards step. Irrespective of whether the bank is open or not, if you do a NEFT and the other user is using Netbanking, it should work.
 
NEFT won't be available I guess since it requires bank clearance even though it's internet-based.
IMPS on the other hand should work.I wonder why people even use NEFT when we have IMPS which is faster?
+1 to Vivek's point about free ATM usage
Not sure about increasing cost for cash withdrawal charge from the bank since many financially poor people use this and it would be inhuman to charge them.
The PSU employees are too lazy,unaware and should improve their work ethic.
Would be good to see a time where PSU employees are competitive & Citizens' Customer Satisfaction is their top priority.
 
When I did my fisrt IMPS transaction, even I was happy that no charges were deducted from my account!
What happens is that in NEFT, the charge is deducted along with the transfer amount. But in IMPS, it gets deducted later on (even after couple of days).

This is for ICICI:
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http://www.icicibank.com/Personal-Banking/onlineservice/online-services/FundsTransfer/neft-rtgs.page
 
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