What changed
RBI now requires banks to actively participate in central NEFT DR drills from their backup/DR sites, not just conduct internal tests. The central NEFT clearing centre at Nariman Point will review arrangements with IDRBT support. Non-compliance could result in banks losing NEFT participation eligibility.
What it means for you
Banks must ensure their NEFT DR infrastructure is robust and tested quarterly from alternate sites. This raises operational resilience standards but adds compliance burden. Failure to comply risks exclusion from NEFT, impacting customer services and revenue.
What you must do
- Conduct NEFT DR drills from alternate/backup sites at least once a quarter.
- Participate in RBI-conducted NEFT DR drills from your DR site when called.
- Confirm compliance with RBI by acknowledging receipt of this circular.
- Review and update your NEFT BCP documentation and DR arrangements immediately.
Who it affects
All banks participating in NEFT, Bank IT and operations teams managing NEFT, Bank senior management (CMD/CEO)
What is the minimum frequency for NEFT DR drills?
Banks must conduct NEFT DR drills at least once a quarter, using their alternate/backup/DR sites.
What happens if a bank fails to comply with these DR requirements?
RBI may review and potentially revoke the bank's eligibility to participate in NEFT operations.