The Reserve Bank of India (RBI) Governor Shaktikanta Das said on Sunday that Real Time Gross Settlement (RTGS) facility in the country will become operational from 12.30 am on Monday (December 14). This move by the central bank comes within a year of operationalising the National Electronics Funds Transfer (NEFT) on a 24×7 basis.RTGS facility becomes operational 24X7 from 12.30 am tomorrow. Congratulations to the teams from RBI, Indian Financial Technology and Allied Services (IFTAS) and the service partners who made this possible.
The RTGS system is meant for high-value transactions, on a real-time basis. The minimum amount that can be remitted through RTGS is ₹ 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 instantaneous. On the other hand, NEFT handles fund transfers up to ₹ 2 lakh and such transactions are usually executed in a couple of hours.RTGS, which is meant for high-value instant fund transfers, is currently available on all working days of the week except the second and fourth Saturdays, between 7.00 am to 6.00 pm.
RBI Governor Shaktikanta Das had earlier said that with 24X7 RTGS system, “it is proposed to reduce settlement and default risk in the system by facilitating settlement of AePS, IMPS, NETC, NFS, RuPay, UPI transactions on all days of the week instead of five days earlier.”It is to be noted that RBI stopped levying charges on transactions through NEFT and RTGS from July 2019, with an aim to promote digital transactions in the country.RTGS is meant for large-value instantaneous fund transfers, while NEFT is used for fund transfers of up to Rs 2 lakh.