Nilekani panel suggested 24×7 RTGS, NEFT, elimination of all charges

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Nandan Nilekani committee has given some suggestions to promote digital payments in India. Nilekani panel suggested that RTGS and NEFT facility should be available 24×7. Also, it recommends duty free import of point of sales machines. Reserve Bank of India (RBI) was appointed this committee last month and it had submitted its recommendations to Governor Shaktikanta Das.

  •  The panel has suggested that there should be no convenience fee on payments made to government agencies by customers.
    •    It has also recommended that payment systems should use machine-driven, online dispute resolution systems to handle complaints.
    •    Panel felt customers must be allowed to initiate and accept a reasonable number of digital payment transactions with no charges.
    •    RBI and the government should put in place an appropriate mechanism to monitor the digital payment systems and make aggregated information based on blocks, and PIN code, available to all players on a monthly basis, so that they can make the necessary adjustments,” said the report released by the RBI.

RTGS (real time gross settlement) and NEFT (national electronic funds transfer) are electronic payment methods that allow individuals to transfer funds between banks. Both these systems are maintained by the Reserve Bank of India. It is applicable only for money transfer within the country.

NEFT operates on a deferred settlement basis. Fund transfer under NEFT is settled in batches as opposed to the real-time settlement process in RTGS. The batches are settled in hourly time slots.