The RTGS facility will be available 24 hours from midnight tonight
The Real Time Gross Settlement System (LBTR) for high value transactions will be available 24 hours a day from 00:30 Monday onwards, making India one of the few countries in the world that operates the system 24 hours a day, 7 days a week.
In October, the RBI had announced that RTGS would be available 24 hours a day, every day of the year.
“The RTGS facility will be operational 24×7 starting at 12.30 am tonight. Congratulations to the RBI teams, IFTAS and the service partners who made this possible, ”said RBI Governor Shaktikanta Das in a tweet.
India will become one of the few countries in the world to operate its LBTR system 24 hours a day throughout the year.
RTGS on premises 24X7X365 occurs within one year of RBI putting NEFT 24×7 into operation. NEFT is a popular mode for small value transactions.
RTGS, which began operations on March 26, 2004 with a soft launch involving four banks, currently handles 6.35 lakh transactions daily worth Rs 4.17 lakh crore at 237 participating banks.
The average ticket size for RTGS in November 2020 was Rs 57.96 lakh, making it a great value payment system.
RTGS uses the ISO 20022 format, which is the best-in-class messaging standard for financial transactions. The positive confirmation function for the credit to payees accounts is also available in LBTR.
“The availability of RTGS 24 hours a day will provide greater flexibility for companies to make payments and will allow the introduction of additional settlement cycles in ancillary payment systems. This can also be leveraged to improve the operations of Indian financial markets and cross-border payments, ”the RBI said last week.
Previously, RBI had decided not to impose fees on transactions through NEFT and the real-time gross settlement system (LBTR) to promote digital transactions in the country, and asked banks to pass the profits on to clients.
The RBI used to impose minimal charges on banks for transactions routed through RTGS and NEFT. The banks, in turn, charged their customers.
RTGS is designed for high value instant fund transfers, while NEFT is used for fund transfers up to Rs 2 lakh.