The Real Time Gross Settlement System (RTGS) will be made available round-the-clock from December 1. The decision for large value transactions was made by the Reserve Bank of India (RBI) recently.
Back in December 2019, the National Electronic Fund Transfer (NEFT) system was made available on a 24x7x365 basis. Currently, RTGS is available for customers from 7 am to 6 pm on all working days of a week, except second and fourth Saturdays of every month.
The minimum amount to be remitted through RTGS is 2,00,000/- with no upper or maximum ceiling. Executed on a real-time basis, every transaction is settled individually in RTGS.
In July 2019, the central bank stopped leying charges on transactions through NEFT and RTGS in a bid to promote digital transactions in the country. RTGS is used for large-value instantaneous fund transfers while NEFT is used for fund transfers of up to Rs 2 lakh.
Earlier, RBI Governor Shaktikanta Das had said that the decision was taken 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 corporate and institutions.
"With this, India will be one of the very few countries globally with a 24x7x365 large value real time payment system," he had said.
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