The Real Time Gross Settlement System (RTGS) for high-value transactions will be available round-the-clock on all days from 00:30 hours staring today, making India one of the few countries to operate the system 24×7.
Back in October, the Reserve Bank of India (RBI) had announced that RTGS will be available round-the-clock on all days of the year.
RBI Governor Shaktikanta Das said RTGS facility in the country will become operational from 12.30 am on Monday. This move by the central bank comes within a year of operationalizing the national electronic funds transfer (NEFT) on a 24×7 basis.
“Congratulations to the teams from RBI, Indian Financial Technology and Allied Services (IFTAS) and the service partners who made this possible,” Mr Das tweeted.
The RTGS system is meant for high-value transactions, on a real-time basis. The minimum amount that can be remitted through RTGS is Rs 2 lakh and there is no maximum limit. The beneficiary bank receives instructions to transfer the funds immediately after the transaction is carried out, and the transfer is immediate. On the other hand, NEFT handles fund transfers up to Rs 2 lakh and such transactions are usually executed in a couple of hours.
RTGS, which started on March 26, 2004, with a soft launch involving four banks, currently handles 6.35 lakh daily transactions for a value of Rs 4.17 lakh crore involving 237 participant banks.