Reserve Bank of India Governor Shaktikanta Das on Friday announced that the large-value Real Times Gross Settlement System (RTGS) system for payments will be available round the clock or 24×7 from December 10, 2020. As of now, the RTGS system for making payments is currently available for customers from 7 am to 6 pm on all working days of the week except the second and fourth Saturday of the month. However, the RBI has now decided to make the service available 24×7 for all 365 days of the year. “It has been decided to make available the RTGS system round the clock on all days. With this, India will be one of the very few countries globally with a 24x7x365 large value real-time payment system,” RBI said in a notification. Here is all you need to know about RTGS payments: 1) The RTGS system is primarily for large value transactions and it has no upper payment cap.
The minimum payment, however, needs to be Rs 2 lakh. 2) Under normal circumstances, the beneficiary branches are expected to receive the funds in real-time as soon as the funds are transferred by the remitting bank. The beneficiary bank then has to credit the end beneficiary’s account within two hours of receiving the fund transfer message. 3) It is different from both NEFT and EFT, which are electronic fund transfer modes that operate on a deferred net settlement (DNS) basis. In both NEFT and EFT, transactions are settled in batches unlike RTGS payments, where transactions are processed continuously throughout the RTGS business hours. 4) Some essential information has to be provided by the remitting customer for RTGS payment. The person making the RTGS payment has to mention the account to be remitted, his/her account which is to be debited, name of the beneficiary bank, name and account number of the beneficiary customer and the IFSC code of the receiving branch.