NEW Delhi: In order to boost the adoption of digital payments, the Reserve Bank of India (RBI) allowed the transfer of funds through Real-Time Gross Settlement (RTGS) round-the-clock, used for large value transactions, round-the-clock from December1. Currently, RTGS is available for customers from 7.00 am to 6.00 pm on all working days of a week, except second and fourth Saturdays of every month. RBI Governor Shaktikanta Das said that to support the ongoing efforts aimed at global integration of Indian financial markets, facilitate India’s efforts to develop international financial centres and to provide wider payment flexibility to domestic corporate and institutions, it has been decided to make RTGS available 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,” he said after the the meeting of the Monetary Policy Committee (MPC).
From July 2019, RBI stopped levying charges on transactions through NEFT and RTGS, with an aim to promote digital transactions in the country.
RTGS is meant for large-value instantaneous fund transfers. It happens on a real-time basis. Every transaction is settled individually in case of RTGS.
NEFT is used for fund transfers of up to ₹2 lakh. NEFT and Immediate Payment Service (IMPS) are already available 24×7. RTGS fund transfer happens on a real-time basis. Every transaction is settled individually in case of RTGS. NEFT was made available 24×7 last year. But these fund transfer modes are generally used by individuals.
—Agencies

KR Desk