The Reserve Bank of India (RBI), the country’s central bank, has decided to allow online transfer of funds 24 hours a day via real-time gross settlement (RTGS) network from December 2020.
RBI governor Shaktikanta Das said that this move will support the high-value payments ecosystem and will enable ease of doing business.
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In a virtual briefing, Das said: “To facilitate swift and seamless payments in real-time for domestic businesses and institutions, it has been decided to make available the RTGS system round the clock on all days from December 2020.
“India will be among very few countries globally with a 24x7x365 large value real-time payment system.”
Using RTGS, individuals or businesses can transfer large amounts of funds to the beneficiary’s account in real-time.
Currently, RTGS does not support around the clock money transfers.
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By GlobalDataIt is available for online payments on all working days of the week including Saturdays between 7am and 6pm.
The minimum amount that can be transferred using RTGS is INR200,000 ($2,726). There is no upper limit.
The latest move is in line with the central bank’s efforts to make electronic payments more convenient for businesses.
Previously, RBI allowed around the clock online transfer of funds via National Electronic Funds Transfer (NEFT) system from December 2019.
Das added that the “the system has been operating smoothly since then.”
RBI also scrapped the fees on online payments through NEFT and RTGS to encourage digital payments.
In its statement on developmental and regulatory policies, RBI noted: “To support the ongoing efforts aimed at global integration of Indian financial markets, facilitate India’s efforts to develop international financial centres and to provide wider payment flexibility to domestic corporates and institutions, it has been decided to make available the RTGS system round the clock on all days.”
Last month, RBI laid out a five-pillared strategic approach called “GUARD” to address cybersecurity issues at urban cooperative banks (UCBs).
