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RTGS To Become 24x7 Available From December 2020, Says RBI
- RTGS (Real-time gross settlement) to become 24x7 available from December 2020, says The Reserve Bank Of India (RBI).
- RBI took this decision to enable a seamless payment system in the country.
- RTGS is mainly used for the large fund transfer above Rs 2 lakh and has no maximum cap.
The Reserve Bank Of India on Friday decided that RTGS (Real-time gross settlement) will be available 24x7x365 from December this year.
RTGS (Real-time gross settlement) is used for the large fund transfer above Rs 2 lakh, available from 7 am to 6 pm on all working days of a week. With this decision, India will be among very few countries with a 24x7 large value payments ecosystem.
RTGS (Real-time gross settlement) is a payment system used for the large fund transfer. It is considered one of the most secure and safest methods to transfer large funds (Above Rs 2 lakh).
RTGS is used by the central banks to minimize the risk related to high-value transactions among financial institution.
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“To facilitate swift and seamless payments in real-time for domestic businesses and institutions, it has been decided to make available the RTGS system round the clock on all days from December 2020,” the RBI said in the statement.
“This will facilitate innovations in the large value payments ecosystem and promote ease of doing business,” RBI added in the statement.
In December 2019, RBI made NEFT (National Electronic Fund Transfer) 24x7x365 for the customers to transfer their funds seamlessly.
The minimum amount that can be transferred via RTGS is Rs 2 lakh and has no maximum limit. However, Banks usually have a maximum limit of Rs 10 lakh on real-time bases. RBI has enabled this payment system for inter-bank transactions. Hence, RTGS payment system cannot be used for international transactions.
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