The Reserve Bank of India (RBI), from December 1, allowed the transfer of funds through Real-Time Gross Settlement (RTGS) system available for customers 24x7.
RTGS is used for large-value transactions; the minimum amount to be remitted through RTGS is Rs 2 lakh with no maximum limit. This is done in order to boost the adoption of digital payments.
Till November 30, RTGS was available from 7 am to 6 pm on all working days of a week , except second and fourth Saturdays of every month for customers.
"To support the ongoing efforts aimed at global integration of Indian financial markets, facilitate India's efforts to develop international financial centres and to provide wider payment flexibility to domestic corporate and institutions, it has been decided to make RTGS available round-the-clock on all days", RBI Governor Shaktikanta Das said.
Das added "With this, India will be one of the very few countries globally with a 24x7x365 large value real time payment system".
With an aim to promote digital transactions in the country, RBI stopped levying charges on transactions through NEFT and RTGS from July 2019.
Real-time gross settlement (RTGS) systems are specialist funds transfer systems where the transfer of money or securities takes place from one bank to any other bank on a "real-time" and on a "gross" basis.
National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of India (RBI). Started in November 2005, the setup was established and maintained by Institute for Development and Research in Banking Technology. NEFT-enabled bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis. It is done via electronic messages.
Here are 5 things you should know:
- The real time gross settlement (RTGS) system will be available 24x7 from December 1.
- Previously, RTGS facility was available from 7 am to 6 pm for customers on all working days of a week.
- The RTGS system is primarily meant for high-value transactions. It happens on a real-time basis.
- The minimum amount to be remitted through RTGS is Rs 2 lakh with no maximum limit.
- In this transfer, the beneficiary bank receives the instruction to transfer funds immediately when you carry out the transaction, and the transfer is instantaneous.