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New RBI Notification: RTGS Time Extended

The Reserve Bank of India in its new notification made an important announcement about the RTGS (Real Time Gross Settlement) system for customer transactions. The RTGS time extended by one and a half hour. The timings are extended from 4:30 pm to 6 pm. The new notification will be in implementation form 1st of June 2019.

The transactions will now take place in three shifts.

  • The first window will open from 8 am to 11 am.
  • The second window will open from 11 am to 1 pm.
  • The third window will open from 1 pm to 6 pm.

Important Details About RTGS Time Extended Notification

The first window of the transaction (8 am to 11 pm) will not be chargeable.The second and third window will charge Rs. 5 for every transaction between 1 pm to 6 pm.The final cut off time for inter-bank transactions will be 7:45 pm.

The Real Time Gross settlement is a payment mechanism that operates on a transactional basis instead of netting basis. The benefit of this system is that the transaction happens in order to order basis and immediately and not in some later time.

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The RTGS system is primarily in use for transferring a larger amount of funds. The minimum amount of fund that can be remitted through RTGS is Rs. 2 Lakh. Additionally, there is no upper or maximum ceiling for fund transfers. However, these conditions may vary from bank to bank.

RTGS time extended by RBI

The RTGS system is primarily in use for large value transactions. The minimum transfer amount through RTGS is ₹2 lakh with no upper or maximum ceiling.

NEFT (National Electronic Fund Transfer) is another mode of payment transfer. However, in NEFT, there is no limit for a minimum or maximum amount for fund transfers.

The drawback of NEFT is that it operates in hourly batches. This means that if funds are transferred through RTGS, then they will reach the receiver in real time. On the other hand, if they take place through NEFT, then they will be transferred in the next batch of payment released by the bank as per the current RBI guidelines. This payment takes place in hourly slots.

ALSO READ- RBI’s Banking Ombudsman Scheme, 2006

Akash Dubey

Akash Dubey is a Law Graduate and works as an Advisor at Enterslice. He is proficient in Legal and Financial Advisory. His expertise in the skills of Legal and Financial Research is an aid to his strengths as an Advisor.

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