RTGS System To Open at 7 AM From August 26 as RBI Extends Operating Hours

Highlights

The extended customer transactions timing would be applicable from 26th August.

Presently, the Real Time Gross Settlement (RTGS) System is available for customer transactions from 8 am to 6 pm.

RBI extended operating hours

With the intention of promoting digital transactions, the Reserve Bank of India (RBI) has extended the customer transactions timing for Real-Time Gross Settlement (RTGS) system by an hour. The RBI has stated that presently, an individual could transfer funds through the RTGS system from 7 am rather than 8 am from 26th August. The RBI stated in a notification that towards increasing the availability of the RTGS system, it was decided to extend the operating hours of RTGS and start operations for customers and banks from 7:00 am.

Presently, the Real Time Gross Settlement (RTGS) System is available for transactions from 0800 hours to 1800 hours as well as for inter-bank transactions from 0800 hours to 1945 hours.

Also, the Reserve Bank of India had decided to allow round-the-clock fund transfers by the National Electronic Funds Transfer (NEFT) from December this year with the purpose of supporting digital transactions.

At the moment, the NEFT, a retail payment system, is available for clienteles from 8 am to 7 pm on every working day with the exception of 2nd and 4th Saturdays of a month.

The NEFT system is applied for fund transfers of up to Rs 2 lakh, and RTGS for those above this threshold.

Earlier, State Bank of India (SBI) had waived the Immediate Payment Service (IMPS) transaction charges on internet banking as well as mobile banking from 1st August 2019. There is also a waiver on IMPS charges for amount transfer up to Rs 1,000 through branch banking. An IMPS is an instant interbank electronic fund transfer service by mobile phones.

During June 2019, The Reserve Bank has decided to waive all the charges on fund transfer through the popular RTGS and NEFT systems and had requested banks to pass on the benefits to clienteles.

The Reserve Bank also allowed processing of e-mandate on credit and debit cards for recurring transactions (merchant payments) with a cap of Rs 2,000.

The RBI has been getting requests from industry shareholders towards allowing the processing of e-mandate on cards for recurring transactions through Additional Factor of Authentication (AFA) during e mandate registration and first transaction.

The RBI stated in a circular that it had decided to permit processing of e-mandate on cards for recurring transactions (merchant payments) with AFA during e-mandate registration, modification as well as revocation, as also for the first transaction, and simple or automatic subsequent successive transactions. This was done keeping in view the changing payment requirements and the requirement to balance the safety and security of card transactions with client convenience.

The maximum permissible limit for a transaction under the e-mandate facility on cards shall be Rs 2,000.

The RBI also added that no charges shall be levied or recovered from the cardholder for availing the e-mandate facility on cards for recurring transactions.

The direction is applicable for transactions executed using all types of cards debit, credit as well as Prepaid Payment Instruments (PPIs), which includes wallets.

The New RTGS timing window with effect from 26th August 2019

The few things to know regarding money transfer through RTGS are:

1) Presently, the RTGS system is available for customer transactions from 8 am to 6 pm as well as for inter-bank transactions from 8 am to 7.45 pm.

2) The extended customer transactions timing shall be applicable from 26th August 2019.

3) The RTGS system is mainly meant for high-value transactions. The minimum sum to be remitted through RTGS is Rs 2 lakh with no maximum limit.

4) RTGS transactions occur in real-time.

5) In this transfer, the beneficiary bank obtains the instruction towards transferring funds immediately when an individual carry out the transaction and the transfer is instantaneous.

6) RTGS timings for Inward transactions are free, no charge to be imposed.

7) The timings for Outward transaction is  Rs. 2 lakh to 5 lakh, not surpassing Rs. 30 per transaction.

8) The transaction exceeding Rs. 5 lakh but not exceeding Rs. 55 each transaction.

The Reserve Bank of India

The Reserve Bank of India (RBI) the central financial entity in India, which directs banks, non-banking financial organizations as well as other important fiscal services and is likewise in charge of the administration of foreign exchange reserves, control of inflation as well as for setting up the nation’s financial strategy.

What is RTGS?

The Real-Time Gross Settlement (RTGS) system is mainly meant for large value transactions, with the minimum cap set at Rs 2 lakh. There is no upper limit. However, there is continuous as well as the real-time settlement of fund-transfers, individually on a transaction through a transaction basis, unlike National Electronic Funds Transfer (NEFT), which clears transactions in batches. Furthermore, the NEFT system is used for fund transfers of up to Rs 2 lakh.

Author:

eStartIndia Team