Mumbai, December 10: The Reserve Bank of India (RBI) announced on Wednesday that Real Time Gross Settlement System (RTGS) will be operational 24x7, all throughout the year from 14 December 2020. This comes within a year of operationalising NEFT 24x7 by RBI. RTGS is meant for large-value instantaneous fund transfers, while NEFT is used for fund transfers of up to Rs 2 lakh.

The RBI governor first announced that RTGS will be made available round the clock during the monetary policy announcement in October that it would be operational from December 2020. RTGS, IMPS, NEFT: Here's the Difference Between These Fund Transfer Methods.

Here are some FAQs about RTGS Money transfer.

What is RTGS Payment Method?

The RTGS system is primarily meant for high-value transactions. It happens on a real-time basis.  The minimum amount to be remitted through RTGS is Rs 2 lakh and for maximum, it has no limit.

What are RTGS charges?

From July 2019, RBI stopped levying charges on transactions through NEFT and RTGS, with an aim to promote digital transactions in the country.

What is the maximum amount for RTGS payment transfer?

The minimum amount to be remitted via RTGs is Rs 2 lakh. There is no upper limit on RTGS transactions.

How is RTGS different from NEFT?

NEFT is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals can electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country participating in the Scheme.

On the other hand, the RTGS system is primarily meant for large value transactions, starting from Rs 2 lakh.

 

(The above story first appeared on LatestLY on Dec 13, 2020 04:04 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).