RBI extends Time-Window for using RTGS Service

Published on May 30, 2019
The Reserve Bank of India (RBI) announced that the time-window for using the Real Time Gross Settlement System (RTGS) for customer transactions will be extended from 4:30 pm to 6 pm on all working days.
RBI extends Time-Window for using RTGS Service

Details:

  • It will be effective from June 1, 2019.
  • The current RTGS service window for customer transactions is available to banks from 8 a.m. to 4.30 p.m. on a working day.

Transactions will now take place under three windows:

  • 8 am to 11 am
  • 11 am to 1 pm
  • 1 pm to 6pm

Charges for the transactions:

  • There shall be no charge for transactions between 8 am and 11 am.
  • A charge of Rs.2 will be levied on every transaction conducted between 11 am and 1 pm.
  • Rs.5 shall be charged for every transaction between 1pm and 6pm.

Reason for this decision:

  • The decision is after a robust year-on-year increase in the number of transactions by 8% to Rs.1,335 crore in March 2019.
  • The aggregate amount of transactions rose 12% year-on-year to ₹1,255.51 crore.
  • In the month of April, banks and customers combined used RTGS for 1.14 crore transactions worth Rs.112 lakh crore.

Real Time Gross Settlement System (RTGS):

  • 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.
  • RTGS is an electronic form of funds transfer where the transmission takes place on a real-time basis.
  • RTGS is considered to be fasted payment method mandated for high-value interbank transactions by the central bank.
  • The RTGS system is primarily meant for large value transactions.
  • The minimum amount to be remitted through RTGS is Rs.2 lakh with no upper or maximum ceiling.
  • The beneficiary account receives the funds transferred, on a real-time basis.
  • Customers with Internet banking accounts can do RTGS transactions on their own.

Question:

Q. The Reserve Bank of India (RBI) announced that the time-window for using which service for customer transactions will be extended from 4:30 pm to 6 pm on all working days? 
a. Real Time Gross Settlement System (RTGS)
b. National Electronic Funds Transfer (NEFT)
c. Cash Withdrawl
d. Demand Draft
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