In order to promote digital transactions, the Reserve Bank of India (RBI) has extended the customer transactions timing for Real Time Gross Settlement (RTGS) system by an hour. Now, you can transfer funds through the RTGS system from 7 am instead of 8 am from 26 August, the RBI said on Wednesday. "In order to increase the availability of the RTGS system, it has been decided to extend the operating hours of RTGS and commence operations for customers and banks from 7:00 am," the RBI said in a notification.
New RTGS timing window with effect from 26 August 2019
Open for Business-7 am
Customer transactions (Initial Cut-off)-6 pm
Inter-bank transactions (Final Cut-off)-7.45 pm
Intra-day liquidity (IDL) Reversal-7.45 pm to 8.00 pm
End of Day-8.00 pm
Here are five things to know about money transfer through RTGS:
1) At present, RTGS system is available for customer transactions from 8 am to 6 pm and for inter-bank transactions from 8 am to 7.45 pm.
2) The extended customer transactions timing will be applicable from August 26.
3) The RTGS system is primarily meant for high-value transactions. The minimum amount to be remitted through RTGS is ₹2 lakh with no maximum limit
4) RTGS transactions happen in real time.
5) In this transfer, the beneficiary bank receives the instruction to transfer funds immediately when you carry out the transaction, and the transfer is instantaneous.
Earlier this month, the RBI had decided to allow round-the-clock fund transfers through the National Electronic Funds Transfer (NEFT) from December this year in order to promote digital transactions.
Currently, the NEFT, a retail payment system, is available for customers from 8 am to 7 pm on all working days with the exception of second and fourth Saturdays of a month and banking holidays. The NEFT system is used for fund transfers of up to ₹2 lakh.
Earlier, State Bank of India (SBI) had done away with Immediate Payment Service (IMPS) transaction charges on internet banking and mobile banking from 1 August 2019. There is also a waiver on IMPS charges for fund transfer up to₹1,000 through branch banking. IMPS is an instant interbank electronic fund transfer service through mobile phones.