With this, India will become part of a small group of countries in the world where RTGS system functions round the clock throughout the year.
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. (Photo: iStock)
The Reserve Bank of India on Wednesday announced that the Real Time Gross Settlement System’ (RTGS) is going to be operational round the clock starting from December 14.
With this, India will become part of a small group of countries in the world where RTGS system functions round the clock throughout the year.
The RTGS is used for large-value instantaneous fund transfers. It happens on a real-time basis and the minimum amount of fund transfer is Rs 2 lakh with no Maximum limited.
Advertisement
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.
The settlement system began its operations on March 26, 2004 with a soft launch involving four banks, presently handles 6.35 lakh transactions daily for a value of Rs 4.17 lakh crore across 237 participant banks.
“The average ticket size for RTGS in November 2020 was Rs 57.96 lakh making it a truly large value payment system,” the statement said.
“Round the clock availability of RTGS will provide extended flexibility to businesses for effecting payments and will enable introduction of additional settlement cycles in ancillary payment systems.”
“This can also be leveraged to enhance operations of Indian financial markets and cross-border payments.”
Round the clock availability of RTGS system will provide a flexibility to various businesses in settling their financial accounts.
In a similar move in December 2019, the National Electronic Funds Transfer (NEFT) system was made available on a 24x7x365 basis.
Advertisement
