RTGS to be available 24×7 from December 14

Just within a year of operationalising NEFT 24×7, the Reserve Bank has announced that the Real Time Gross Settlement System or the RTGS facility will now be available for round the clock transactions.

Daily Current Affairs Quiz 2020

Key-Points

Round the clock availability of RTGS will provide extended flexibility to businesses for effecting payments. The system can also be leveraged to enhance operations of Indian financial markets and cross-border payments.

RTGS, which began its operations on 26th March, 2004 with a soft launch involving four banks, presently handles 6.35 lakh transactions daily for a value of 4.17 lakh crore rupees across 237 participant banks.

RBI has informed that RTGS uses ISO 20022 format which is the best-in-class messaging standard for financial transactions.

The term real-time gross settlement (RTGS) refers to a funds transfer system that allows for the instantaneous transfer of money and/or securities.

RGTS is the continuous process of settling payments on an individual order basis without netting debits with credits across the books of a central bank.

Once completed, real-time gross settlement payments are final and irrevocable.