As of 1 December, the Reserve Bank of India (RBI) has approved the transfer of funds via Real-Time Gross Settlement (RTGS) mechanism will be available 24x7x365 for customers. For large-value transactions, RTGS is used with no upper limit, the minimum amount to be remitted by RTGS is Rs 2 lakh. This is achieved by optimizing digital payment acceptance. RTGS was open to consumers from 7 am to 6 pm on all working days of the week until November 30, except for the second and fourth Saturdays of each month. In an effort to enhance ongoing initiatives to integrate Indian financial markets internationally, to encourage India’s efforts to establish international financial centres and to provide domestic companies and institutions with greater payment versatility, it was agreed to make RTGS accessible round-the-clock during the day.
Through this, India will become one of the very few countries worldwide with a 24x7x365 real-time payment system of high significance. RBI quit imposing transaction fees through NEFT and RTGS from July 2019 with the purpose of fostering digital transactions in the nation. Real-time gross settlement (RTGS) systems are professional transfer systems of funds where the transfer of money occurs on a “real-time” and “gross” basis from one bank to another bank. National Electronic Funds Transfer (NEFT) is a framework of electronic transfer of funds operated by RBI. The establishment and management of the Institute for Banking Technology Development and Research began in November 2005. NEFT-allowed bank customers in India to transfer money on a one-to-one basis between any two NEFT-enabled bank accounts. That is achieved by way of electronic communications.
5 Things You Must Keep In Mind From Today About RTGS
- From December 1, the real-time gross settlement (RTGS) system will be accessible 24×7.
- Earlier, on all working days of the week, the RTGS facility was open to customers from 7 am to 6 pm.
- The RTGS framework is specifically intended for transactions of high value. On a real-time basis, it exists.
- Rs 2 lakh with no upper cap is the minimum amount to be remitted by RTGS.
- Under this mechanism, the recipient bank receives directions for the transfer of funds directly as the transaction is carried out and the transfer is instant.