MUMBAI: Clients will soon be able to transfer funds via real-time gross settlement (RTGS) which will be available 24 hours a day in the coming days, Reserve Bank of India (RBI) Governor Shaktikanta said on Friday. You give.
“The RTGS system will soon go 24/7 in the next few days and this was announced in the last policy. With this enablement, it is proposed to reduce the risks of settlement and default in the system by facilitating settlement every day of the week, rather than five days in advance, “Das said.
RTGS enables the transfer of funds in real time to a beneficiary’s account and is designed primarily for high value transactions. Real time means the processing of the instructions as they are received and gross settlement means that the settlement of the funds transfer instructions occurs on an individual basis.
At present, RTGS is not a 24×7 system and is available every day that most bank branches are operating, including Saturdays. The minimum amount that can be remitted through RTGS is ₹2 lakh. There is no upper limit.
RBI has tried to make the electronic payment mode more convenient for businesses. RBI had allowed the transfer of funds through the National Electronic Funds Transfer (NEFT) system 24x7x365 since December 2019.
Apart from that, the central bank has also decided to increase the limit for contactless card transactions (no need to enter a pin number) and recurring payment mandates via cards and Unified Payment Interface (UPI) to ₹5,000 of ₹2000 before. This will be effective as of January 1, 2021 and will be at the user’s discretion.
This, the governor said, will ensure the adoption of digital payments in a secure manner.
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