The RBI has introduced new RTGS transactions timings for customers and businesses by 1 hour! Effective from August 26th, 2019, The Reserve Bank of India (RBI) extended RTGS money transfer time by one hour.
Why did the RBI make this decision? The RBI sought to make the RTGS network more accessible and available to businesses and customers and extended the operating hours. Previous operating hours started at 8:00 AM and now, the RBI’s new RTGS transactions timings are 7:00 AM-6:00 PM.
What is RTGS?
RTGS(Real Time Gross Settlement) is an online money transfer mode that allows you to transfer funds on a ‘real-time’ (immediate) basis. The main difference between NEFT and RTGS is – the money is settled in batches for NEFT, making it slower.
With RTGS, the money is credited in the beneficiary’s account in real-time. This fund transfer method is typically used to transfer huge amounts of money.
New RTGS transaction timings:
- As per RBI notifications, the new RTGS transaction timings are:
- Transaction time opens: 7:00 AM
- Customer transactions (Initial Cut-off) – 6:00 PM
- Inter-bank transactions (Final Cut-off) – 7:45 PM
- Intra-day liquidity (IDL) Reversal – 7:45 PM TO 8:00 PM
- Closing time for the system: 08:00 PM
Opening Time: 8:00 AM – 6:00 PM. Now, the transfer of funds can be done from 7:00 AM to 6:00 PM
RTGS funds are credited instantly. The bank credits the funds within a 30-minute time frame.
Features of RTGS Transactions:
- RTGS is used for high-value transactions.
- The minimum RTGS transaction amount is INR 2 lakh and there is no maximum limit.
- With the RTGS, the beneficiary bank receives the instruction to transfer funds immediately when you carry out the transaction, and the transfer is instantaneous
Promoting Digital Payments with NEFT and RTGS:
The Government has taken a few other steps besides the new RTGS transaction timings to improve digital payments:
Earlier this month, the RBI had decided to allow round-the-clock fund transfers through National Electronic Funds Transfer (NEFT) from December 2019.
In June, RBI removed charges on NEFT and RTGS transactions for everyone. The RBI decided to do away with the minimum charges it levies on NEFT and RTGS transactions. Previously, RBI levied minimum charges to banks on banks for any online NEFT and RTGS transactions routed through payment gateways. Through this, banks levy a small charge on customers for every transaction. With the new rule, banks pass these benefits to its customers i.e small businesses.
How MyPetrolPump uses Instamojo NEFT/RTGS for payments:
Instamojo has enabled NEFT/RTGS payment modes for small businesses, besides other modes of payment like digital wallets, UPI and Debit/Credit card. MyPetrolPump, an Instamojo user and successful startup uses the Instamojo NEFT – Virtual Account Number to track their online payments.
Instamojo facilitates NEFT and RTGS payments for all users. Also, you can use the Instamojo NEFT feature with payment links too. Watch the video below to know more.