May 29, 2019

To facilitate high-value fund transfers, the RBI has announced an extension of timings for customer transactions through Real Time Gross Settlement (RTGS) by one and half hours from 4:30 PM to 06 PM.


  • What is it? The RTGS is an online fund transfer system, supported by the Reserve Bank of India (RBI), which enables money transaction on a real-time basis.

  • Functioning: 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.

  • Limits: The RTGS system is primarily meant for large-value transactions.
    • The minimum amount for the transaction under this system is Rs 2 lakh.

    • There is no upper limit on the value of funds that can be transferred via the RTGS system.

Recent decision:

  • The recent decision by RBI 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.

  • New timing will be effective from 1st June.

Source : The Hindu