The Real Time Gross Settlement System (RTGS) for high-value transactions will be available round-the-clock from Monday, making India one of the few countries in the world to operate the system 24X7.
RBI Governor Shaktikanta Das had announced in October that the system will be available at all times from December 2020 to make online fund transfer smooth.
“RTGS facility becomes operational 24X7 from 12.30 am tonight. Congratulations to the teams from RBI, IFTAS and the service partners who made this possible,” Das said in a tweet on Sunday.
RTGS, which began its operations on March 26, 2004 with a soft launch involving four banks, presently handles as many as 6.35 lakh transactions per day for a value of Rs 4.17 lakh crore across 237 participant banks, according to news agency PTI.
This safe and secure system for funds transfer has no amount cap. The minimum amount to be remitted through RTGS is Rs 2,00,000. The funds settlement takes place in the books of RBI, so the payments are final and irrevocable once made.
“Round the clock availability of RTGS will provide extended flexibility to businesses for effecting payments and will enable introduction of additional settlement cycles in ancillary payment systems. This can also be leveraged to enhance operations of Indian financial markets and cross-border payments,” RBI had said last week.
In December 2019, RBI had made the national electronic funds transfer (NEFT) available 24X7. “Making available NEFT 24×7 is part of RBI’s vision of empowering every Indian with access to a bouquet of e-payment options,” the official handle to India’s central bank had tweeted. NEFT is a popular mode for small-value transactions up to Rs 2 lakh.