24X7 RTGS transaction facility starts from today
The RBI announced on Sunday that the 24X7 RTGS transaction facility will be starting from 12:30 am on December 14.
In a bid to give a push to digital payments, the Reserve Bank of India (RBI) announced the 24X7 Real Time Gross Settlement (RTGS), used for large value transactions, facility from December 14. RBI Governor Shaktikanta Das announced that the RTGS facility would become operational 24X7 from 12:30 am tonight.
The RBI had also announced a slew of measures including enhancing the limit for contactless card transactions to Rs 5,000. In December 2019, the National Electronic Funds Transfer (NEFT) system was made available on a 24x7x365 basis.
Shaktikanta Das said, "RTGS facility becomes operational 24X7 from 12.30 AM tonight. Congratulations to the teams from RBI, IFTAS and the service partners who made this possible."
RTGS (Real-Time Gross Settlement) facility becomes operational 24X7 from 12:30 am tonight: RBI Governor Shaktikanta Das— ANI (@ANI) December 13, 2020
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Currently, the RTGS transaction facility is available for customers from 7.00 am to 6.00 pm on all working days of a week, except the second and fourth Saturdays of every month.
RBI Governor Shaktikanta Das had earlier said that with 24X7 RTGS system, "it is proposed to reduce settlement and default risk in the system by facilitating settlement of AePS, IMPS, NETC, NFS, RuPay, UPI transactions on all days of the week instead of five days earlier."
It is to be noted that RBI stopped levying charges on transactions through NEFT and RTGS from July 2019, with an aim to promote digital transactions in the country.
RTGS is meant for large-value instantaneous fund transfers, while NEFT is used for fund transfers of up to Rs 2 lakh.