RTGS refers to Real Time Gross Settlement. This system is a specialist fund transfer system where the transfer of money or securities take place from one bank to other banks on a “real-time and on a “gross” basis. Recently RBI has changed the timing of RTGS which have effect from December 2020. In this post, we will know the “RTGS New Timing From December 2020”.
Real Time Gross Settlement – RTGS
RTGS is basically used for funds transfer. As per RBI’s FAQs, the minimum amount that can be remitted through RTGS is Rs. 2 lakh with no upper and maximum celling. However, banks usually have an upper ceiling of Rs. 10 lakh.
At present, RTGS is not a 24*7 system and is available on all days when most bank branches are functioning, including Saturdays. From December 2019, RBI has allowed the transfer of funds using NEFT on a 24*7*365 basis, and now from December 2020, it’s the time for RTGS.
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RTGS New Timing From December 2020
The Reserve Bank of India (RBI), has decided to make available the RTGS facility available on 24*7 basis. With this, India will be among the few countries globally with a large value payment ecosystem.
Before applicability of new changes, the RTGS timing is 7.00 AM to 6.00 PM on all working days of a week (except 2nd and 4th Saturday of the month and Sunday also). Now from December 2020, RBI decided to make available the RTGS system round the clock on all days.
Press Release for new timing of RTGS
RBI issued the press release dated 09th October 2020, for the new timing of RTGS. The same can be viewed and downloaded from below.
The purpose of these changes is to support the ongoing efforts aimed at global integration of the Indian financial market, facilitate India’s efforts to develop international financial centers, and to provide wider payment flexibility to domestic corporations and institutions.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)