The Reserve Bank of India (RBI) has introduced a new time frame for the Real-Time Gross Settlement (RTGS) system, which has come into effect from December 1, 2020.
This top bank of India has now provided the facility to customers to transfer funds on all days of every week on a 24×7 basis through real-time gross settlement (RTGS) system. As of November 30, 2020, the RTGS system provided the facility of transfer of funds to customers from 7 am to 6 pm on all working days of the week, except the second and fourth Saturdays of every month.
The real-time gross settlement (RTGS) system / system is a fund transfer system commonly used for high value transactions. This money transfer takes place in real time.
Things to know about RTGS
The transfer of funds through RTGS becomes instantaneous, as the beneficiary bank has been instructed to immediately transfer funds when the transaction is done.
The transfer of high value money is mainly done through RTGS. The minimum amount to be transferred through RTGS is Rs 02 lakh and there is no maximum limit.
In the case of RTGS, each transaction is dealt with individually.
Transfer of funds under RTGS can be done by going to internet banking, mobile banking or bank branch.
The Reserve Bank of India has imposed a cap on the RTGS transaction charge. For RTGS money transfer/fund transfer, banks can charge between Rs 2-5 lakh up to Rs 24.50 and for fund transfer a maximum of Rs 49.50. Customers will have to pay GST on the amount of money.
One of the biggest drawbacks of RTGS was its set deadline, as the facility was only available during working hours on working days.
Therefore, the Reserve Bank of India has decided to make the RTGS facility available on a 24×7 basis on all days. It aims to facilitate India’s efforts to develop international financial centres and to provide comprehensive payment flexibility to domestic corporations and institutions.