In order to further smoothen the process of online fund transfer, Reserve Bank of India Governor Shaktikanta Das on Friday announced that Real Time Gross Settlement (RTGS) payment system will be available round the clock from December 2020. Also Read - India at Doorstep of Economic Revival, Says RBI Governor
Earlier, the RBI made the NEFT facility available 24X7 from December 16, 2019. Also Read - Policy Repo Rate to Remain Unchanged at 4%, Real GDP to Contract by 9.5% in 2021: RBI Governor | Highlights
Here is all you need to know about the RTGS mode of online money transfer: Also Read - RBI’s New Guidelines For Credit, Debit Card Users Are Effective From Today | All You Need to Know
- RTGS is a safe and secure system for funds transfer with no amount cap.
- The funds settlement takes place in the books of the Reserve Bank of India. So, the payments are final and irrevocable.
- As of now, RTGS is not a 24×7 system. The RTGS service window for customer transactions is available to banks from 7am to 6pm on a working day, for settlement at the RBI end. However, the timings that the banks follow may vary from bank to bank.
- The RTGS system is primarily meant for large value transactions.
- The minimum amount to be remitted through RTGS is Rs 2,00,000 with no upper or maximum ceiling.
- NEFT is an electronic fund transfer system in which the transactions received up to a particular time are processed in batches. However, in RTGS, the transactions are processed continuously on a transaction by transaction basis throughout the RTGS business hours.