Good news on RTGS fund transfer! Service to be available 24X7 from December 2020

Currently, Real Time Gross Settlement System (RTGS) is available for customers from 7.00 am to 6.00 pm on all working days of a week.

New Delhi: The Reserve Bank of India on Friday said that Real Time Gross Settlement System (RTGS), used for large value transactions, will be made available round-the-clock from December 2020.

Currently, RTGS is available for customers from 7.00 am to 6.00 pm on all working days of a week, except second and fourth Saturdays of every month.

Announcing the bi-monthly RBI Monetary Policy decision, RBI Governor Shaktikanta Das said, customers will get round-the-clock availability of Real Time Gross Settlement (RTGS) System.

“In December 2019, the RBI made available the National Electronic Funds Transfer (NEFT) system on a 24x7x365 basis and the system has been operating smoothly since then. In order 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.”

“India will be among very few countries globally with a 24x7x365 large value real time payment system. This will facilitate innovations in the large value payments ecosystem and promote ease of doing business,” he added.

What is RTGS?

RTGS is a financial transaction system, where there is continuous and real-time settlement of fund transfers, individually on a transaction-by-transaction basis. RTGS transactions or transfers have no amount cap.

What is the minimum amount to be remitted through RTGS?

The minimum amount to be remitted through RTGS is Rs 2 lakh with no upper or maximum ceiling.

Since July 2019, RBI stopped levying charges on transactions through NEFT and RTGS, with an aim to promote digital transactions in the country.

The central bank has also decided to grant perpetual validity for Certificate of Authorisation (CoA) issued to Payment System Operators (PSOs) to reduce licensing uncertainties.

Currently, the RBI issues "on-tap" authorisation under the Payment and Settlement Systems Act, 2007 to non-banks issuing Prepaid Payment Instruments (PPIs), operating White Label ATMs (WLAs) or the Trade Receivables Discounting Systems (TReDS), or participating as Bharat Bill Payment Operating Units (BBPOUs).