The Reserve Bank of India (RBI) on Friday, decided to make the Real Time Gross Settlement (RTGS) system available 24*7 starting from 14th December 2020. Thus, from midnight, i.e. 00.30 hours of 14th December, RTGS will be available round the clock on all the days of a year. In the ‘Statement on Developmental and Regulatory Policies’ dated 9th October 2020, the RBI had announced making RTGS round the clock. Accordingly, the RBI issued a notification on Friday for making RTGS available 24*7.
As per the notification, RTGS is available for customers and inter-bank transactions round the clock. But RTGS is not available during the intervals between ‘end-of-day’ and ‘start-of-day’ processes. The RBI will broadcast the timings of these intervals through the RTGS system.
The RTGS Systems Regulation, 2013 as amended in December 2020, regulates RTGS. The RTGS Systems Regulation, 2013 has been amended accordingly to provide RTGS round the clock from the 14th of this month.
The notification has advised the members to put in place the necessary infrastructure for facilitating RTGS 24*7 to their customers. The members are also further advised to disseminate information on the availability of RTGS 24*7 to all their customers. The RTGS transactions undertaken after the normal banking hours will be automated using ‘Straight Through Processing’ (STP) modes.
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RBI is trying its best to provide convenience for businesses by making the electronic mode of payments conveniently. In December 2019, RBI allowed the transfer of funds on a 24*7*365 basis through the National Electronic Funds Transfer (NEFT) system.
Currently, the large-value RTGS is not available 24*7 on all days at all times. The timings of RTGS transaction is from 7 a.m. to 6 p.m. on all working days of a week. The minimum amount of remission through RTGS is Rs.2 lakh while there is no upper limit. Through RTGS, there can be a transfer of over Rs.2 lakh instantly with the help of the RTGS facility.
The State Bank of India (SBI) has a maximum limit of transfer through RTGS of Rs.10 lakh for retail internet banking customers. The SBI also provides a maximum upper limit of Rs.2,000 crore transfer per transaction for corporate internet banking customers through RTGS. There is no upper limit for transferring funds per day by the corporate internet banking customers through RTGS.
Under RTGS, as soon the funds are transferred by the remitting bank, the beneficiary bank branch receives the amount in real-time. The beneficiary bank will then have to credit the beneficiary account within 30 minutes of receipt of the funds’ transfer message.
The RBI is helping the customers and businesses by providing many facilities and making the availability of these facilities quickly to them. The availability of the RTGS facility 24*7 will give a boost in the adoption of digital payments in India. Now, large amounts can be transferred to any place across the country on a real-time basis through RTGS.
For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in
I am an Advocate by profession. I interpret laws and put them in simple words. I love to explore and try new things in life.
