RBI in its Statement on Developmental and Regulatory Policies has informed that Real Time Gross Settlement System will soon be available 24x7x365. In December 2019, the National Electronic Funds Transfer (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 centers 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.
RTGS is the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting). ‘Real Time’ means the processing of instructions at the time they are received rather than at some later time; ‘Gross Settlement’ means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis).
The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 lakh. There is no upper ceiling for RTGS transactions. Depending on the amount and the time of transfer, the RTGS varies.
Earlier, the RBI had removed the Online Transaction Charges on NEFT, RTGS. In order to provide an impetus to digital funds movement, RBI had decided to do away with the charges levied by it for transactions processed in the RTGS and National Electronic Funds Transfer (NEFT) systems.
