The Reserve Bank of India (RBI) in a notification dated 21 August informed of an extension in the timings for money transfer using RTGS service. The RTGS (Real-Time Gross Settlement) system, that is used for large amount transfers (above Rs 2 lakh) will be available to customers from 7 am starting 26 August 2019 instead of 8 am.
"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," RBI's notification said.
The new effective timings will be:
|Open for Business||07:00 hours|
|Customer transactions (Initial Cut-off)||18:00 hours|
|Inter-bank transactions (Final Cut-off)||19:45 hours|
|IDL Reversal||19:45 hours - 20:00 hours|
|End of Day||20:00 hours|
At present RTGS is available between 8 am to 6 pm to customers.
RTGS system is used for large fund transfers of money or securities from one bank to another on "real-time" basis, which means there is no waiting period. Further, these are "gross settlements," that is, settled on a one-to-one basis and not in batches.
RBI has been looking at ways to improve the adoption of digital modes of payments in the country. Earlier this month, RBI said that NEFT facility will be made available 24x7 from December 2019. At present the facility is only available during banking hours.
Charges on NEFT and RTGS transactions were also waived off.