The Reserve Bank of India has increased the Real Time Gross Settlement (RTGS) time window for customer transactions (initial cut-off) from 4.30 pm to 6 pm.
This follows a robust year-on-year increase in the number of transactions by 8 per cent to ₹1,335 crore in March 2019. The aggregate amount of transactions rose 12 per cent year-on-year to ₹1,255.51 crore.
RTGS is a system of continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting). ‘Real Time’ means the processing of instructions at the time they are received; ‘Gross Settlement’ means that the settlement of funds transfer instructions occurs individually.
The RTGS system is primarily meant for large-value transactions. The minimum amount to be remitted through RTGS is ₹2 lakh with no upper or maximum ceiling.
The RBI said the time-varying charges for transactions in RTGS from 1 pm to 6 pm (1 pm to 4.30 pm earlier) shall be ₹5 per outward transaction. After 6 pm (4.30 pm earlier), these charges will be ₹10.
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