In October, the RBI had announced that RTGS will be offered round-the-clock on all days of the year. RTGS facility comes inside a year of RBI operationalising NEFT 24×7. NEFT is a preferred mode for compact-worth transactions.
RTGS, which started its operations on March 26, 2004 with a soft launch involving 4 banks, presently handles 6.35 lakh transactions each day for a worth of Rs 4.17 lakh crore across 237 participant banks.
“Round the clock availability of RTGS will provide extended flexibility to businesses for effecting payments and will enable the 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,” RBI had stated final week.
Here is all you require to know about the RTGS revenue transfer facility which will be offered round-the-clock from today:
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RTGS is meant for big-worth instantaneous fund transfers, though NEFT is utilized for fund transfers of up to Rs 2 lakh.
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RTGS shall be offered for client and inter-bank transactions round the clock, except for the interval amongst ‘end-of-day’ and ‘start-of-day’ processes, whose timings would be duly broadcasted by means of the RTGS method.
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RTGS utilizes ISO 20022 format which is the greatest-in-class messaging normal for monetary transactions. The function of optimistic confirmation for credit to beneficiary accounts is also offered in RTGS.
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The typical ticket size for RTGS in November 2020 was Rs 57.96 lakh, generating it a actually big-worth payment method.
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Difference amongst NEFT and RTGS: NEFT is an electronic fund transfer method in which the transactions received up to a specific time are processed in batches. Contrary to this, in RTGS, the transactions are processed constantly on a transaction by transaction basis all through the RTGS business enterprise hours.
(Inputs from PTI)