RBI extends RTGS transfer timings to 6 pm from June 1
The Reserve Bank of India (RBI) has extended timings for customer transactions through Real Time Gross Settlement (RTGS). The timings for customer transactions in RTGS have been extended from 4.30 pm to 6 pm from June 01, 2019. Under Real Time Gross Settlement (RTGS) System, there is a continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting).
The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 lakh with no upper or maximum ceiling.
"It has been decided to extend the timings for customer transactions (initial cut-off) in RTGS from 4:30 pm to 6:00 pm," the RBI said in a notification. The extended window for RTGS will be applicable from June 1.
Besides, National Electronic Funds Transfer (NEFT) is another popular form of fund transfer. There is no limit for the minimum/maximum for fund transfer. However, NEFT operates in hourly batches. Currently, India's largest bank SBI provides 12 settlements from 8 am to 7 pm on weekdays and five settlements from 8 am to 1 pm on Saturdays.
Unlike NEFT, the RTGS is much faster possible way of transferring hefty amount, as real time indicates transaction carried aren’t subject to any waiting period. Also, gross settlement means that, a transfer of money is fulfilled on a one-on-one basis without collecting with another transaction.
Completion of the transaction can be witnessed as soon as the processing is done. Transactions in this platform are seen as final and irrevocable as they account occurs in the books and maintained by RBI. One can carry RTGS during working hours of a bank.