“RTGS facility becomes operational 24X7 from 12.30 am tomorrow. Congratulations to the teams from RBI, Indian Financial Technology and Allied Services (IFTAS) and the service partners who made this possible,” Das tweeted.
“India will be among very few countries globally with a 24x7x365 large-value real-time payment system. This will facilitate innovations in the large value payments ecosystem and promote ease of doing business,” Das has said in an earlier statement.
RTGS facility becomes operational 24X7 from 12.30 pm tonight. Congratulations to the teams from RBI, IFTAS and the… https://t.co/HD8B5i99Qa
— Shaktikanta Das (@DasShaktikanta) 1607841357000
In October, the RBI had announced that RTGS will be available round-the-clock on all days of the year. Here’s all you need to know about the RTGS facility-
- RTGS on 24x7x365 facility comes within a year of RBI operationalising NEFT 24×7. NEFT is a popular mode for small-value transactions.
- RTGS, which began its operations on March 26, 2004 with a soft launch involving four banks, presently handles 6.35 lakh transactions daily for a value of Rs 4.17 lakh crore across 237 participant banks.
- The average ticket size for RTGS in November 2020 was Rs 57.96 lakh, making it a truly large value payment system.
- RTGS uses ISO 20022 format which is the best-in-class messaging standard for financial transactions. The feature of positive confirmation for credit to beneficiary accounts is also available in RTGS.
- The RBI used to levy minimum charges on banks for transactions routed through RTGS and NEFT. Banks, in turn, levied charges on their customers.
- RTGS is meant for large-value instantaneous fund transfers, while NEFT is used for fund transfers of up to Rs 2 lakh.
RBI had last week said, “Round the clock availability of RTGS will provide extended flexibility to businesses for effecting payments and will enable introduction of additional settlement cycles in ancillary payment systems. This can also be leveraged to enhance operations of Indian financial markets and cross-border payments.”
Earlier, RBI had decided not to levy charges on transactions through NEFT and Real Time Gross Settlement (RTGS) system in order to promote digital transactions in the country, and asked banks to pass on the benefits to the customers.
(with inputs from agencies)