New Delhi, December 9: The RTGS or Real Time Gross Settlement system will be operational round the clock on all days of the year from December 14, 2020. The Reserve Bank of India (RBI) had announced to make RTGS available 24x7 throughout the year in a notification on December 4. The major development, which is aimed at reducing the build-up of settlement and default risks, came in less than a year after the RBI operationalised NEFT or National Electronic Funds Transfer 24x7. Banks To Have 5-Day Working Week Permanently? Here Is What RBI Says.

Presently, the RTGS facility is available between 7 am and 6 pm on all working days except for Sundays and the second and fourth Saturdays of every month. "It has been decided to make RTGS available round the clock on all days of the year with effect from 00:30 hours on December 14, 2020," the RBI notification stated. RTGS, which began its operations on March 26, 2004, with a soft launch involving four banks, currently handles Rs 6.35 lakh transactions daily for a value of Rs 4.17 lakh crore across 237 participant banks. RBI Orders HDFC Bank to Stop Sourcing New Credit Card Customers, Digital Activities Over Multiple Internet Banking and Mobile Banking Service Outages.

What is RTGS?

The RTGS facility is used to make large money transfers from one bank account to another. According to the RBI, the minimum amount that can be transferred through RTGS is Rs 2 lakh. Though no upper or maximum ceiling has been set, banks usually allow transfer up to Rs 10 lakh through RTGS.

Will RTGS be Avaialble 24x7?

According to the RBI, RTGS will be operational for transactions 24x7, except for the interval between "end-of-day" and "start-of-day" processes, whose timings would be duly announced through the RTGS system. Intra-Day Liquidity (IDL) facility will be available for smooth operations. The IDL availed, if any, shall be reversed before the "end-of-day" process begins. After normal banking hours, RTGS transactions will continue automatically using "Straight Through Processing (STP)" modes.

(The above story first appeared on LatestLY on Dec 09, 2020 06:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).