24x7 facilities for RTGS will be at our fingertips from December this year, says RBI!
By Priti Kumari
NEW DELHI: Easing the money transfer affairs, RBI announced that the Real Time Gross Settlement (RTGS) will be made accessible 24x7 from December 2020, alike (National Electronic Funds Transfer) NEFT.
De facto, RTGS refers to the transfer of funds from a bank account to the other on a gross basis. According to RBI, the RTGS has Rs 2 lakh as the minimum limit for money transfer, with no maximum limit. As per the source privy to the matter, RBI will not charge any amount for the transfer, alike NEFT but it has restrained the charges which a bank might charge. The banker's bank had already made available round the clock facility for NEFT on December 16, 2020.
Consistent with this, the bank in its 'Statement on Development and Regulatory Policies' asserted, "In December 2019, the NEFT system was made available on a 24x7x365 basis and the system has been operating smoothly since then. The large-value RTGS system is currently available for customers from 7.00 am to 6.00 pm on all working days of a week (except 2nd and 4th Saturdays of the month).To support the ongoing efforts aimed at global integration of Indian financial markets, facilitate India's efforts to develop international financial centres and to provide wider payment flexibility to domestic corporates and institutions, it has been decided to make available the RTGS system round the clock on all days. With this, India will be one of the very few countries globally with a 24x7x365 large value real-time payment system. This facility will be made effective from December 2020.
Commenting on this, a source familiar to the matter stated, "The announcement of round-the-clock RTGS is a progressive measure that will facilitate convenience and efficiency in business operations. Perpetual license for payment system operators will engender predictability and certainty for the payments and settlement sector".