RBIs important order on RTGS timings to come into effect from December 1 - What you must know
The Reserve Bank of India (RBI) has allowed 24/7 transfer of funds through Real-Time Gross Settlement (RTGS) round-the-clock from December1.
The Reserve Bank of India (RBI) has allowed 24/7 transfer of funds through Real-Time Gross Settlement (RTGS) round-the-clock from December1. This move is aimed at promoting digital transactions and ensure seamless. It will help all those who are in business of making large value transactions on day-to-day basis.
Banks presently allow RTGS transactions on all working days, except second and fourth Saturdays of every month between 7am to 6 pm.
RBI has made the announcement in October saying Real Time Gross Settlement System (RTGS) will be made available round-the-clock from December 1, 2020.
"Once RTGS new rule comes into effect, India will be one of the very few countries globally with a 24x7x365 large value real time payment system," RBI Governor Shaktikanta Das had said.
Presently, banks only allowed transfers between 7 am and 6 pm on all working days, except for the second and fourth Saturday of the month and on Sundays.
The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is 2,00,000/- with no upper or maximum ceiling. It is executed on a real-time basis and every transaction is settled individually in RTGS.
RBI has stopped levying charges on transactions made through National Electronic Fund Transfer (NEFT) and RTGS since July 2019. The move was to promote digital transactions and global integration of Indian financial markets. RBI has already made the NEFT facility available 24x7 from December 2019.
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