As per sources privy to the development, after making fund transfer route NEFT available 24x7 with effect from December 16, 2019, the RBI is working on making RTGS or real time gross settlement available round the clock.
RTGS also facilitates fund transfer transaction of a higher amount, minimum being pegged at Rs. 2 lakh. The facility come become operational round the clock in a month or two, added the source.
229 banks that include both scheduled commercial and cooperative banks offer the facility as of November, with total transaction value via RTGS at Rs. 86.8 trillion in November.
And as and when the facility becomes operational 24x7, it is seen to open up vast opportunities. "This will enable round the clock transfers and settlements in the international financial centre to start with. Thus, a great bottleneck will be removed," a senior banker is quoted as saying in a leading business daily report.
The domestic market will likely operate as per normal market hours. And the move will indeed primary benefit to the capital markets.
"It would be a good enabling factor for business and capital market activities. And this could act as precursor to full rupee convertibility in future," said Soumyajit Niyogi, associate director at India Ratings and Research in the report.
Already, the apex bank RBI has waived off its fees charged for clearing NEFT and RTGS transactions. In a directive the RBI asked banks not to charge its savings bank customers for fund transfer made using NEFT.