From today, the Real Time Gross Settlement System (RTGS), which is often used for high-value transactions, will be available 24*7 on all days.
The news comes months after the Reserve Bank of India (RBI), announced the development that RTGS will be available round-the-clock on all days of the year. The activation of the service makes India one of the few countries to entertain this service.
Only last year, the central bank of India had operationalised the national electronic funds transfer (NEFT) on a 24×7 basis.
“Congratulations to the teams from RBI, Indian Financial Technology and Allied Services (IFTAS) and the service partners who made this possible,” Mr Das tweeted.
For anyone unaware of what RTGS is all about, it’s basically a system meant for high-value transactions, on a real-time basis.
One can send a minimum amount of Rs 2 lakh through RTGS and there is no maximum limit. The beneficiary bank receives instructions to transfer the funds immediately after the transaction is carried out, and the transfer is immediate. On the other hand, NEFT handles fund transfers up to ₹ 2 lakh and such transactions are usually executed in a couple of hours.
RTGS was started back in 2004, with a soft launch involving four banks. Currently, it is one of the most used banking services, which currently handles 6.35 lakh daily transactions with an amount totaling ₹ 4.17 lakh crore involving 237 participant banks.