InvestorQ : From when are the new RTGS rules applicable?
Shreya Mashelkar made post

From when are the new RTGS rules applicable?

Answer
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simran Kaur answered.
1 year ago


'RTGS' stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds individually on an order by order basis (without netting). 'Real Time' means the processing of instructions at the time they are received rather than at some later time.

'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

Under the new RTGS rules, the time window for RTGS system will be extended by one-and-a-half hour for bank customers.

Previously the timing for any RTGS transaction was till 4:30 pm. Now it has been extended to 6 pm. The final cut-off for inter-bank transactions will be 7:45 pm.

These new RTGS rules will be effective June 1, 2019.