December 13, 2020 5:26:16 pm
The Actual Time Gross Settlement System (RTGS) for high-value transactions will turn out to be accessible round the clock from 00:30 hours Monday onwards, making India one of many few international locations on the earth to function the system 24X7. In October, the RBI had introduced that RTGS might be accessible round the clock on all days of the 12 months.
“RTGS facility turns into operational 24X7 from 12.30 am tonight. Congratulations to the groups from RBI, IFTAS and the service companions who made this attainable,” RBI Governor Shaktikanta Das mentioned in a tweet.
India will turn out to be one of many few international locations on the earth to function its RTGS system round the clock all year long. RTGS on 24X7X365 facility comes inside a 12 months of RBI operationalising NEFT 24×7. NEFT is a well-liked mode for small-value transactions.
RTGS, which started its operations on March 26, 2004 with a comfortable launch involving 4 banks, presently handles 6.35 lakh transactions each day for a worth of Rs 4.17 lakh crore throughout 237 participant banks.
The common ticket dimension for RTGS in November 2020 was Rs 57.96 lakh, making it a very massive worth cost system.
RTGS makes use of ISO 20022 format which is the best-in-class messaging customary for monetary transactions. The characteristic of optimistic affirmation for credit score to beneficiary accounts can also be accessible in RTGS.
“Around the clock availability of RTGS will present prolonged flexibility to companies for effecting funds and can allow introduction of extra settlement cycles in ancillary cost techniques. This can be leveraged to boost operations of Indian monetary markets and cross-border funds,” RBI had mentioned final week.
Earlier, RBI had determined to not levy costs on transactions via NEFT and Actual Time Gross Settlement (RTGS) system with a view to promote digital transactions within the nation, and requested banks to go on the advantages to the shoppers.
The RBI used to levy minimal costs on banks for transactions routed via RTGS and NEFT. Banks, in flip, levied costs on their clients.
RTGS is supposed for large-value instantaneous fund transfers, whereas NEFT is used for fund transfers of as much as Rs 2 lakh.
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