Reserve Bank of India (RBI) has announced that Real Time Gross Settlement System or the RTGS facility will now be available to the public for round the clock transactions from December 14, 2020. This comes within one year of operationalising the National Electronics Funds Transfer (NEFT) 24×7.
In a statement, the top bank informed that round the clock availability will provide extended flexibility to businesses for effecting payments. It added that the system can also be leveraged to enhance operations of Indian financial markets and cross-border payments.
The system is mostly meant for high-value transactions and happens on a real-time basis. The minimum amount to be remitted through the RTGS is ₹2 lakh with no maximum limit. In the transfer, the beneficiary bank receives the instruction to transfer funds immediately when one carries out the transaction, and the transfer is instantaneous.
RTGS, which began its operations on March 26, 2004, with a soft launch involving four banks, presently handles 6.35 lakh transactions daily for a value of 4.17 lakh crore rupees across 237 participant banks. RBI has informed that RTGS uses ISO 20022 format which is the best-in-class messaging standard for financial transactions. The feature of positive confirmation for credit to beneficiary accounts is also available in RTGS.
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