RTGS deadline to be extended from 4:30 pm to 6 pm from June 1

RTGS deadline to be extended from 4:30 pm to 6 pm from June 1
From June 1, the time-varying charges for outward transactions between 11 am to 1 pm will be Rs 2 and for those between 1 pm to 6 pm will be Rs 5

The Reserve Bank of India (RBI) has decided to extend the usage timings for ‘Real Time Gross Settlement’ (RTGS) system from this Saturday, June 1.

A notification to this effect was issued by the central banking institution on Tuesday.

RTGS is a financial transaction system, which allows for a continuous and real-time settlement of fund transfers, individually on a transaction-by-transaction basis. However, the system does not work on a 24-hour basis.

The current RTGS service window for customer transactions is available to banks from 8 am to 4.30 pm on working days, for settlement at the RBI’s end.

However, the central bank has decided to extend the evening deadline by another 1 hour 30 minutes.

“It has been decided to extend the timings for customer transactions (initial cut-off) in RTGS from 4.30 pm to 6 pm,” RBI said.

As a result, transactions will take place under three windows – 8 am to 11 am, 11 am to 1 am and 1 am to 6 pm. Customers who conduct transactions in the first window won’t have to pay any fee over and above the fixed processing charge.

However, those who transact in the second and third window will have to bear an additional fee of Rs 2 and Rs 5 respectively.

“The time-varying charges for transactions in RTGS from 13:00 hours (1 pm) to 18:00 hours (6 pm) shall be Rs 5 per outward transaction,” it added.

While both RTGS and Immediate Payment Service (IMPS) are instant money transfer services, they differ in some crucial aspects like timings and limits.

RTGS allows for transactions up to Rs 10 lakh, while IMPS is restricted to Rs 2 lakh per transaction. Additionally, IMPS works 24×7, including weekends.

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