Mumbai : With a view to make the payment ecosystem more efficient, the Reserve Bank of India (RBI) on Friday announced that the Real Time Gross Settlement (RTGS) system will soon be made 24 hours a day throughout the week. With this, customers can transfer funds anytime as per their convenience.
“The RTGS system will soon be made 24×7. With this enablement, it is proposed to reduce settlement and default risk in the system by facilitating settlement of AePS, IMPS, NETC, NFS, RuPay, UPI transactions on all days of the week. This will make the payments ecosystem more efficient” said RBI Governor Shaktikanta Das.
“The RTGS system will soon be made 24×7. With this enablement, it is proposed to reduce settlement and default risk in the system by facilitating settlement of AePS, IMPS, NETC, NFS, RuPay, UPI transactions on all days of the week. This will make the payments ecosystem more efficient” said RBI Governor Shaktikanta Das.
RTGS is a electronic fund transfer system where transfer of money takes place from one bank to a other bank on real time and on a ‘gross’basis. Here, ‘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. Currently, the RTGS system is available from 7 am to 6 pm on a working day.
The RBI has also hiked the limits of for contactless card transactions and e-mandates for recurring transactions through cards (and UPI) from ₹2,000 to ₹5,000 from January 1, 2021.
“In order to expand the adoption of digital payments in a safe and secure manner, it is proposed to enhance, at the discretion of the user, the limits for contactless card transactions and e-mandates for recurring transactions through cards (and UPI) from ₹2,000 to ₹5,000 from January 1, 2021” he said.