Online transfer of funds through real-time gross settlement (RTGS) will be available round-the-clock from December, Reserve Bank of India (RBI) governor Shaktikanta Das said on Friday.
The step is being taken to facilitate innovations in the large-value payments ecosystem and promote ease of doing business, Das said.
“To facilitate swift and seamless payments in real-time for domestic businesses and institutions, it has been decided to make available the RTGS system round the clock on all days from December 2020. India will be among very few countries globally with a 24x7x365 large value real-time payment system,” Das said in a virtual briefing.
RTGS enables real-time transfer of funds to a beneficiary’s account and is primarily meant for large-value transactions. Real time means the processing of instructions at the time they are received and gross settlement implies that settlement of funds transfer instructions occurs individually, according to the central bank.
At present, RTGS is not a 24×7 system and is available on all days when most bank branches are functioning, including Saturdays. The minimum amount that can be remitted through RTGS is ₹2 lakh. There is no upper limit.
RBI has been trying to make electronic mode of payments more convenient for businesses. Last year, RBI had allowed transfer of funds via National Electronic Funds Transfer (NEFT) system on a 24x7x365 basis from December 2019. “The system has been operating smoothly since then,” Das said. It had also scrapped the levy on online transactions such as NEFT and RTGS to make fund transfers cheaper and encourage digital payments.
“The announcement of round-the-clock RTGS is a progressive measure that will facilitate convenience and efficiency in business operations. Perpetual licences for payment system operators will engender predictability and certainty for the payments and settlement sector,” said Richa Roy, partner, Cyril Amarchand Mangaldas.