The Hindu : Special electronic fund transfer for T+2 system

Online edition of India's National Newspaper
Tuesday, Apr 01, 2003

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Business

Special electronic fund transfer for T+2 system

MUMBAI MARCH 31 . With a view to facilitating timely settlement of securities under the T+2 rolling cycle on stock exchanges beginning tomorrow, the Reserve Bank of India will introduce a special electronic funds transfer (SEFT) scheme for safe and quick transfer of funds across over 2,500 bank branches. The scheme covering around 500 cities and towns would provide same day inter-bank transfer of funds between accounts maintained in any of the participating branches, an RBI release said here today.

The proposed T+2 settlement cycle for "pay-in'' and "pay-out'' for securities on the stock exchanges was expected to commence from tomorrow, it said. The settlement cycle under the SEFT would be distinct from the existing electronic fund transfer scheme that would continue to operate even after the introduction of the special scheme, the RBI said.

The inter-bank settlement under SEFT would be done in Mumbai and there would be three SEFT settlement cycles on weekdays and two on Saturdays, it said. Credit in respect of inward SEFT requests would be given to the beneficiary's account latest before the next settlement cycle, the RBI said.

Any credit that cannot be provided to the beneficiary's account would be returned during the next settlement cycle failing which they would be assumed to have been effected, it said. — PTI

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