All You Need To Know About Real-Time Gross Settlement (RTGS) Payments

All You Need To Know About Real-Time Gross Settlement (RTGS) Payments

RTGS or real-time gross settlement is a payments system in which transactions – or wire transfers – are processed continuously throughout applicable business hours. Contrary to NEFT or national electronic funds transfer, in which the transactions received up to a particular time are processed in batches, RTGS – primarily meant for transactions of Rs. 2 lakh and above – enables instant transfer of funds as per applicable timings. The Reserve Bank of India (RBI) – which maintains the RTGS payments system – has announced an extension in the timings applicable to RTGS transfers by one-and-a-half hours.

Here’s all you need to know about the upcoming changes in RTGS timings and other important details:

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New RTGS timings

Event Time
Open for business 08:00 hours
Customer transactions (initial cut-off) 18:00 hours
Inter-bank transactions (final cut-off) 19:45 hours
IDL (intraday liquidity) reversal 19:45 hours – 20:00 hours
End of day 20:00 hours

The RBI said on Tuesday that it has decided to extend the timings for customer transactions (initial cut-off) in RTGS from 4:30 pm to 6:00 pm. The new timings will take effect from June 1, the central bank noted.

RTGS last cut off time
From June 1, 2019, the cut-off time for RTGS transactions will be 6:00 pm for customers. This means the RTGS transfers will be allowed to be initiated by a remitter till 6:00 pm, instead of 4:30 pm at present.

The final cut-off for inter-bank transactions will be 7:45 pm, according to the RBI.

Commercial banks, from public sector State Bank of India to its private sector peers ICICI Bank and HDFC Bank, are members of the RTGS payments system. As of May 21, State Bank of India – the country’s largest lender – had 24,842 RTGS-enabled bank branches, according to the Reserve Bank of India

RTGS timings SBI

Here are the existing RTGS timings and charges applicable to State Bank of India (SBI) customers, for making fund transfers within the bank’s network as well as to other banks:

Time of settlement at the RBI Transaction Slab Charges
From To
9:00 hours 12:00 hours Rs. 2.00 lakh to Rs. 5.00 lakh Rs. 25
Above Rs. 5.00 lakh Rs. 51
After 12:00 hours 15:30 hours Rs. 2.00 lakh to Rs. 5.00 lakh Rs. 26
Above Rs. 5.00 lakh Rs. 52
After 15:30 hours 16:30 hours (on weekdays) Rs. 2.00 lakh to Rs. 5.00 lakh Rs. 31
Above Rs. 5.00 lakh Rs. 56

RTGS charges

The RBI also mentioned the time-varying charges applicable to RTGS transactions.

Time of Settlement at the Reserve Bank of India Time varying charge per outward transaction (in addition to flat processing charge)
From To
08:00 hours 11:00 hours Nil
After 11:00 hours 13:00 hours Rs. 2.00
After 13:00 hours 18:00 hours Rs. 5.00
After 18:00 hours Rs. 10.00

The time-varying charges for RTGS transfers from 1:00 pm to 6:00 pm will be Rs. 5 per outward transaction, according to the RBI.

Source: ndtv

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