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RTGS services to be unavailable till 2 pm today, here's why

 The RBI, however, made it clear that the National Electronic Funds Transfer (NEFT) facility will function normally.
 

RTGS services to be unavailable till 2 pm today, here's why-dnm
Author
Bengaluru, First Published Apr 18, 2021, 11:52 AM IST
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The Real Time Gross Settlement (RGTS) service for fund transfers will not be available for 14 hours today, the Reserve Bank of India (RBI) had informed.

"As technical upgrade of RBI's #RTGS is scheduled after the close of business of April 17, 2021, #RTGS service will not be available from 00:00 hrs to 14.00 hrs on Sunday, April 18, 2021. #NEFT system will continue to be operational as usual during this period for #moneytransfers," the RBI tweeted on Thursday.

Under RTGS, there is the continuous and real-time settlement of fund-transfers individually on a transaction-by-transaction basis without netting. It is a safe and secure system for funds transfer without any upper or maximum ceiling and is available on all days on 24x7x365 basis.

The RBI, however, made it clear that the National Electronic Funds Transfer (NEFT) facility will function normally.

The central bank also asked its member banks to notify the same to their customers as it will help them plan payments accordingly.

The central bank on April 7 had permitted direct membership of non-bank payment system operators in the Centralised Payment Systems (CPS). RTGS and NEFT faculties were allowed only for banking entities till now, however, it will not be extended to card networks, white label ATM (WLA) operators, prepaid payment instruments (PPI) issuers and Trade Receivables Discounting System (TReDS) platforms.

According to RBI, the move is intended to encourage the participation of non-banks across payments systems.

“To reinforce this trend and encourage the participation of non-banks across payment systems, it is proposed to enable, in a phased manner, payment system operators, regulated by the Reserve Bank, to take direct membership in CPS,” RBI said.

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