Under the RTGS system, the fund reaches the beneficiary bank branch as soon as the fund is transferred, it has to deposit the funds in the beneficiary’s account within two hours of receiving the information of the fund transfer.
Funds of 2 lakh rupees or more are transferred under RTGS.
At present, RTGS facility is available only during banking operations.
Reserve Bank of India (RBI) Governor Shaktikanta Das said on Friday that the fund transfer facility of RTGS (Real Time Gross Settlement) will be available 24 hours from December. Funds of 2 lakh rupees or more are transferred under RTGS. Right now the RTGS facility is available only at the time when the bank functions.
Two types of electronic transfer (inter bank transfer) of funds from bank account to any other bank branch account are currently available – RTGS and NEFT. RBI is overseen by both the systems. In the RTGS system, funds are transferred from the remitting bank to the beneficiary bank branch. He has to deposit the fund in the beneficiary’s account within two hours of receiving the information of fund transfer.
From December 2019, NEFT facility is available 24 hours a day
The Governor said that in December 2019, the National Electronic Funds Transfer (NEFT) system was made available on a 24x7x365 basis. It is working well. It has been decided to keep RTGS available 24 hours a day from December 2020 to facilitate fast and easy real-time payments to domestic businesses and institutions.
India joins a number of countries that offer real time payments of large payments
He said that now few countries are giving 24 hours of major payment facilities all day. This will lead to innovation in large payments and increase business convenience. Another real-time electronic fund transfer facility, EMPS, is currently available. Up to a maximum of Rs 2 lakhs are transferred under IMPS.
