RBI makes RTGS system available 24x7: What is RTGS? All you need to know

RBI has made the transfer of funds through Real-Time Gross Settlement (RTGS) system available to the customers 24x7 on all days of the week.

Created On: Dec 14, 2020 13:11 ISTModified On: Dec 14, 2020 13:12 IST

The Reserve Bank of India (RBI) made the Real-Time Gross Settlement (RTGS) system available to the customers 24x7 on all days of the year from December 1, 2020. The announcement was made RBI Governor Shaktikanta Das.

The Real-Time Gross Settlement system was earlier available to the customers only on working days of a week from 7am to 6 pm, except second and fourth Saturdays of every month. These timings were applicable till November 30, 2020. 

Besides this, the apex bank has decided to increase the limit for contactless card transactions from Rs 2000 to Rs 5,000 at Point of Sale (PoS) terminals from January 1, 2020 based on the feedback from stakeholders in view of the COVID-19 pandemic.

What is RTGS?

The Real-Time Gross Settlement (RTGS) system is a fund transfer system that is generally used for large-value transactions. It happens in real-time. 

New RTGS Timings: 24X7/ On all days of a week

Five Things to Know about RTGS

1. The fund transfer through RTGS is instantaneous, as the beneficiary bank receives the instruction to transfer funds immediately when the transaction is carried out. 

2. Mainly high-value fund transfers are carried through RTGS. The minimum amount to be transferred through RTGS is Rs 2 lakh and there is no maximum limit. 

3. The beneficiary bank receives instructions to make the fund transfer immediately after the transaction is carried out. Every transaction is settled individually and the transfer is instantaneous. While NEFT system also handles fund transfers up to Rs 2 lakh but the transaction is not instantaneous and is usually executed in a couple of hours.

4. The money transfer under RTGS can be done through internet banking, mobile banking or by visiting a bank branch. 

5. The RBI has put a cap on RTGS transaction charges. The banks can charge up to Rs 24. 50 for RTGS fund transfer between 2-5 lakh and a maximum of Rs 49.50 for fund transfers more than 5 lakh. The customers have to pay GST on the amount.

Why has RBI changed the timings for RTGS?

One of the biggest demerits of RTGS was its timings, as it was available only during working hours on working days. 

Hence, the Reserve Bank of India decided to make RTGS available 24x7 on all days to boost the adoption of digital payments and support the ongoing efforts aimed at global integration of Indian financial markets.

It also aims to facilitate India's efforts to develop international financial centres and provide wider payment flexibility to domestic corporate and institutions.


As per RBI Governor Shaktikanta Das, this will make India one of the very few countries globally to have a 24x7 large-value real-time payment system. 


The Reserve Bank of India had made fund transfer through National Electronic Funds Transfer (NEFT) available 24x7 in 2019. The Immediate Payment Service is also available to the customers 24x7. Individuals can use NEFT to transfer funds up to Rs 2 lakh. 

Besides this, the RBI had stopped levying charges on transactions through NEFT and RTGS from July 2019 to promote digital transactions in the country.

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