There are two systems of electronic fund transfer from one bank to another, which are managed by RBI. These are NEFT i.e. National Electronic Funds Transfer and RTGS ie Real Time Gross Settlement.
After National Electronic Funds Transfer ie NEFT, now money can be transferred round the clock from RTGS also. RBI Governor Shaktikanta Das announced on Friday that now funds can be transferred 24 hours every day through real time gross settlement (RTGS). Till now this facility was available only in the working hours of the banks. Through this, funds of at least Rs 2 lakh can be transferred. This service will start from December 2020.
What is RTGS?
There are two systems of electronic fund transfer from one bank to another, which are managed by RBI. These are NEFT i.e. National Electronic Funds Transfer and RTGS i.e. Real Time Gross Settlement. As soon as the money is transferred by the bank sending money under RTGS, it is immediately deposited in the account in which it is sent. The bank of the person to whom the money is sent, has to credit it within two hours of receiving the funds transfer message.
NEFT was 24X7 last year
In December last year, RBI converted NEFT into a 24-hour fund transfer (24x7x365) facility every day of the year. Now RTGS has also been made a 24-hour service every day for businessmen and institutions. From December 2020, now money can be transferred at any time every day under RTGS.
Reserve Bank Governor Shaktikanta Das says that India is one of the few countries where a large amount of money can be transferred. NEFT is a retail payment system operated by RBI, which operates round the clock from last year. At the same time, funds can be transferred up to a maximum of two lakh rupees through the IMPS even on holidays. It has no lower limit.