New RTGS Timings from December 1: Revolutionizing Digital Payments

The Real Time Gross Settlement (RTGS) system, a pivotal component of the Indian banking infrastructure, is set to undergo a significant transformation. Effective from December 1, 2020, RTGS will be accessible round-the-clock, marking a monumental shift for large-value transactions. This change, endorsed by the Reserve Bank of India (RBI), aims to elevate the adoption of digital payments in India and align with global financial markets.

What is RTGS?

RTGS is a system designed for real-time transfer of large-value transactions between banks, providing a secure and reliable medium for transferring funds. It was previously available only from 7:00 AM to 6:00 PM on all working days of the week, with exceptions for second and fourth Saturdays of every month. Starting from December 1, these limitations are lifted, making RTGS accessible around the clock.

Why the Change?

The decision to make RTGS available 24/7 is part of a broader initiative by the RBI to enhance the financial system's efficiency and promote digital payments. According to RBI Governor Shaktikanta Das, this change will support various goals:

Global Integration: Aligning with global financial markets to improve India's position in the global financial landscape. International Financial Centers: Supporting India's efforts to establish international financial centers. Payment Flexibility: Providing wider payment flexibility to domestic corporate and institutions.

Implications for Businesses and Customers

The newfound accessibility of RTGS has significant implications for businesses and customers alike. For businesses, it provides the flexibility to manage large transactions outside of regular business hours, ensuring that financial transactions can be executed promptly without worrying about system limitations. This change also bolsters the reliability and security of large-value payments, contributing to the overall stability of India's financial ecosystem.

For customers, this enhancement means greater convenience and control over their financial transactions. With RTGS now available throughout the day and night, individuals can make significant payments without the constraints previously imposed by limited business hours. This transition marks a pivotal step towards a more digital and efficient financial landscape in India.

How to Prepare for the Changes

Given the imminent changes, businesses and customers are advised to familiarize themselves with the new RTGS system and make necessary adjustments. Key steps to prepare include:

Terminating old practices: Discontinue any outdated practices that rely on the old RTGS timings. Updating systems: Ensure that all banking systems and processes are updated to accommodate round-the-clock RTGS. Customer awareness: Educate customers about the new RTGS timings to avoid confusion and streamline their financial transactions.

Conclusion

The round-the-clock availability of RTGS marks a significant leap towards a more digital and efficient financial system in India. By aligning with global norms and enhancing payment flexibility, the RBI is taking a crucial step towards fostering a more inclusive and dynamic financial market. As this change is implemented, businesses and customers are encouraged to embrace the new RTGS system for greater convenience, efficiency, and global integration.