In an attempt to boost digital payments, the Reserve Bank of India (RBI) allowed funds transfer via Real Time Gross Settlement (LBTR) 24 hours from tomorrow (December 14). RBI Governor Shaktikanta Das announced that the RTGS facility would be operational 24×7 starting at 12:30 am tonight. “It has been decided” to make the RTGS available 24 hours a day every day of the year from 00:30 hours on December 14, 2020, “the RBI said.
Here’s everything you need to know about the LBTR money transfer feature that will be available 24 hours from tomorrow.
1) LBTR will be available for customer and interbank transactions 24 hours a day, except in the interval between the ‘end of the day’ and ‘beginning of the day’ processes, the schedules of which will be duly disclosed through the LBTR system.
2) LBTR will continue to be governed by the 2013 LBTR System Regulations, with their periodic modifications.
3) The intraday liquidity service (IDL) will be made available to facilitate smooth operations. Available Intraday Liquidity (IDL), if any, will reverse before the “end of day” process begins.
4) LBTR transactions made after normal banking hours are expected to be automated using ‘Straight Through Processing (STP)’ modes.
5) Members are further advised to disseminate information on the extended availability of LBTR to all their customers.
6) This directive is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act of 2007 (Act 51 of 2007).
7) The LBTR system is used for high value transactions.
8) It happens in real time. Each transaction is settled individually in the case of LBTR.
9) Currently, the LBTR transaction service is available to customers from 7.00 a.m. M. At 6.00 p. M. Every business day of the week, except the second and fourth Saturday of each month.
10) RBI stopped charging transaction fees through RTGS as of July 2019
The RBI also decided to increase the limit on contactless card transactions to ₹5,000 of ₹2,000 on Point of Sale (PoS) terminals since January 1, 2021 in light of the COVID-19 pandemic and stakeholder feedback.