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.
b. National Electronic Funds Transfer (NEFT)
c. Cash Withdrawl
d. Demand Draft
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
