New RTGS rules: Here are five things to know1 min read . Updated: 29 May 2019, 09:56 AM IST
- RBI has changed the rules for RTGS transfers
- The new rules will be applicable from 1 June
New Delhi: The Reserve Bank of India (RBI) has announced that the time window for Real Time Gross Settlement (RTGS) system will be extended by one-and-a-half hour for bank customers. Under RTGS, there is a continuous and real-time settlement of fund transfers, individually on a transaction by transaction basis (without netting).
1) Previously the timing for any RTGS transaction was till 4:30 pm. Now it has been extended to 6 pm. The final cut-off for inter-bank transactions will be 7:45 pm.
2) The new RTGS timings will be applicable from 1 June.
3) The time-varying charges for transactions in RTGS from 1 pm to 6 pm shall be ₹5 per outward transaction.
4) Transactions from 8 am to 11 am will have no charges. From 11 am to 1 pm the charges will be ₹2 while after 6 pm the transaction charges will be ₹10.
5) The RTGS system is primarily meant for high-value transactions. The minimum amount to be remitted through RTGS is ₹2 lakh with no maximum limit.
Apart from RTGS, National Electronic Funds Transfer (NEFT) is another popular form of fund transfer. There is no limit for the minimum/maximum for fund transfer. NEFT operates in hourly batches.
While the timings may vary slightly from bank to bank, NEFT transactions are less restrictive when it comes to timing. RTGS transactions, on the other hand, happen in real time. Here the beneficiary bank receives the instruction to transfer funds immediately when you carry out the transaction, and the transfer is instantaneous.
At present, the largest lending bank of the country, State Bank of India (SBI) provides 12 settlements from 8 am to 7 pm on weekdays and five settlements from 8 am to 1 pm on Saturdays.