RBI governor Shaktikanta Das today said that the RTGS fund transfer system will be available round-the-clock from December. Under RTGS, the minimum transfer amount is 2 lakh and the facility is available only during working hours of banks.

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Interbank transfer enables electronic transfer of funds from the account of the remitter in one bank to the account of the beneficiary maintained with any other bank branch. There are two systems of Inter Bank Transfer – RTGS (real-time gross settlement) and NEFT. Both these systems are maintained by the Reserve Bank of India.


In the RTGS fund transfer system, the beneficiary bank branch receives the funds in real-time as soon as funds are transferred by the remitting Bank. The beneficiary Bank has to credit the beneficiary’s account within two hours of receiving the fund’s transfer message.


This will improve the ease of doing operations, Reserve Bank of India (RBI) Governor Shaktikanta Das said while announcing the decisions taken by the central bank’s Monetary Policy Committee (MPC).


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“India will be among very few countries globally with a 24x7x365 large value real-time payment system,” Das added


RTGS refers to a funds transfer system that allows for the instantaneous transfer of money and/or securities. RGTS is the continuous process of settling payments on an individual order basis without netting debits with credits across the books of a central bank.


As of now, RTGS is available on all days when bank branches are functioning, ( including those Saturdays when banks are open). The minimum amount allowed to be remitted through RTGS is 2 lakh, while there is no upper or maximum ceiling.


“In December 2019, the RBI made available the National Electronic Funds Transfer (NEFT) system on a 24x7x365 basis and the system has been operating smoothly since then. In order 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,” he said.


“India will be among very few countries globally with a 24x7x365 large value real-time payment system. This will facilitate innovations in the large value payments ecosystem and promote ease of doing business,” he told the reporters.


It is one of the two interbank transfer systems maintained by the RBI that use the electronic transfer method to send money from the remitter’s account in one bank to the beneficiary account in another bank. The other electronic fund transfer system is the National Electronic Funds Transfer (NEFT).