The Reserve Bank of India (RBI) on Friday proposed to start round-the-clock availability of real-time gross settlement (RTGS) facility from December 2020 for swift payments. This will improve the ease of doing operations, Reserve Bank of India (RBI) Governor Shaktikanta Das said while announcing the decisions taken by the Central Bank’s Monetary Policy Committee (MPC). “India will be among very few countries globally with a 24x7x365 large value real-time payment system,” Das added
RTGS refers to funds Transfer system that allows for the instantaneous transfer of money and/or Securities. RGTS is the continuous process of settling payments on an Individual order basis without netting debits with credits across the books of a Central Bank. As of now, RTGS is available on all days when Bank Branches are functioning, (including those Saturdays when Banks are open). The minimum amount allowed to be remitted through RTGS is 2 lakh, while there is no Upper or Maximum ceiling. Meanwhile, RBI kept the benchmark repurchase (repo) rate unchanged at 4 percent. Consequently, the reverse repo rate will also continue to earn 3.35 percent for Banks for their deposits kept with RBI.