The Actual Time Gross Settlement System (RTGS) for high-value transactions will change into out there round the clock from 00:30 hours Monday onwards, making India one of many few international locations on this planet to function the system 24X7.
In October, the RBI had introduced that RTGS shall be out there round the clock on all days of the yr.
“RTGS facility turns into operational 24X7 from 12.30 am tonight. Congratulations to the groups from RBI, IFTAS and the service companions who made this attainable,” RBI Governor Shaktikanta Das stated in a tweet.
India will change into one of many few international locations on this planet to function its RTGS system round the clock all year long.
RTGS on 24X7X365 facility comes inside a yr of RBI operationalising NEFT 24×7. NEFT is a well-liked mode for small-value transactions.
RTGS, which started its operations on March 26, 2004 with a delicate launch involving 4 banks, presently handles 6.35 lakh transactions every day for a worth of Rs four.17 lakh crore throughout 237 participant banks.
The typical ticket dimension for RTGS in November 2020 was Rs 57.96 lakh, making it a really giant worth fee system.
RTGS makes use of ISO 20022 format which is the best-in-class messaging normal for monetary transactions. The characteristic of optimistic affirmation for credit score to beneficiary accounts can also be out there in RTGS.
“Around the clock availability of RTGS will present prolonged flexibility to companies for effecting funds and can allow introduction of further settlement cycles in ancillary fee techniques. This will also be leveraged to boost operations of Indian monetary markets and cross-border funds,” RBI had stated final week.
Earlier, RBI had determined to not levy expenses on transactions by way of NEFT and Actual Time Gross Settlement (RTGS) system with a view to promote digital transactions within the nation, and requested banks to go on the advantages to the purchasers.
The RBI used to levy minimal expenses on banks for transactions routed by way of RTGS and NEFT. Banks, in flip, levied expenses on their prospects.
RTGS is supposed for large-value instantaneous fund transfers, whereas NEFT is used for fund transfers of as much as Rs 2 lakh.
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