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RTGS transaction facility to be available for 24x7 from tonight

RBI Governor Shaktikanta Das had informed about RTGS going 24x7 in the latest monetary policy announcements

December 24, 2020 / 01:15 PM IST

After Reserve Bank of India's statement on December 9, Governor Shaktikanta Das has confirmed further that the Real Time Gross Settlement System (RTGS) will be made available round the clock on all days from 12.30 AM December 14.

With this, India will become one of the few countries in the world to operate its RTGS system round the clock throughout the year, the RBI had said.

This comes within a year of operationalising NEFT 24x7 by the Reserve Bank, the central bank said.

Transactions worth a minimum of Rs 2 lakh or more can be done via RTGS with no maximum ceiling as per RBI.

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In the monetary policy, the RBI had announced that the RTGS will be available round the clock on all days of the year.

“Accordingly, RTGS 24x7x365 will be launched with effect from 00:30 hours on December 14,” the RBI said.

RTGS, which began its operations on March 26, 2004, with a soft launch involving four banks, presently handles 6.35 lakh transactions daily for a value of Rs 4.17 lakh crore across 237 participant banks. The average ticket size for RTGS in November 2020 was Rs 57.96 lakh.

Round-the-clock availability of RTGS will provide extended flexibility to businesses for effecting payments and will enable introduction of additional settlement cycles in ancillary payment systems, the RBI said. This can also be leveraged to enhance operations of Indian financial markets and cross-border payments, the RBI said.

RTGS is a system where there is continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting). 'Real Time' means the processing of instructions at the time they are received; 'Gross Settlement' means that the settlement of funds transfer instructions occurs individually.

With effect from July 01, 2019, the Reserve Bank has waived the processing charges levied by it for RTGS transactions. Banks may pass on the benefit to its customers.

With a view to rationalise the service charges levied by banks for offering funds transfer through RTGS system, a broad framework of charges has been mandated:

a) Inward transactions – Free, no charge to be levied.

b) Outward transactions – Rs 2,00,000/- to Rs 5,00,000/- : not exceeding Rs 24.50/-;(exclusive of tax, if any)

Above Rs 5,00,000/- : not exceeding Rs 49.50/-. (exclusive of tax, if any)

Banks may decide to charge a lower rate but cannot charge more than the rates prescribed by RBI.
Moneycontrol News
first published: Dec 9, 2020 04:58 pm
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