RBI announces RTGS to run 24x7 from December 2020

Monday 12 October 2020 13:26 CET | News

The Reserve Bank of India (RBI) has announced that online transfer of funds through real-time gross settlement (RTGS) will be available round-the-clock from December 2020, according to mint.

The step is being taken to facilitate innovations in the large-value payments ecosystem and promote ease of doing business. RTGS enables real-time transfer of funds to a beneficiary’s account and is primarily meant for large-value transactions. Real time means the processing of instructions at the time they are received, and gross settlement implies that settlement of funds transfer instructions occurs individually, according to the central bank staff.

At present, RTGS is not a 24x7 system and is available on all days when most bank branches are functioning, including Saturdays. RBI has been trying to make electronic mode of payments more convenient for businesses. In 2019, RBI had allowed transfer of funds via National Electronic Funds Transfer (NEFT) system on a 24x7x365 basis from December 2019. 

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Keywords: RBI, RTGS, Reserve Bank of India, real time gross settlement, India, online payments, transfers, funds, real time transfers, gross settlement, National Electronica Funds Transfer, NEFT, electronic payments, bank branches
Categories: Banking & Fintech
Countries: India
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Banking & Fintech