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 - 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. (Also read: The difference between NEFT and RTGS)
Here's all you need to know about the upcoming changes in RTGS timings and other important details:
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 |
| (Source: RBI) | |
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 | ||
| (Source: SBI) | |||
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 | |
| (Source: RBI) | ||
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.
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