With an aim to ease high-value fund transfers, the Reserve Bank of India (RBI) on Tuesday announced an extension of timings for customer transactions through Real Time Gross Settlement (RTGS) by one and half hours.
Customers can now transfer money through RTGS mode till 6 pm instead of the existing 4:30 pm.
The change will come into effect starting June 1, the RBI said.
The RTGS is an online fund transfer system, supported by the RBI, which enables money transaction on a real-time basis. The minimum amount for the transaction under this system is Rs 2 lakh. There is no upper limit on the value of funds that can be transferred via the RTGS system.
The customer is charged a 'time-varying charge' on each outward transaction in addition to the flat processing charge.
While no fee is charged for transfers between 8 am to 11 am, banks charge Rs 2 for a transaction made between 11 am to 1 pm, and Rs 5 for transfers between 1 pm to 6 pm period. After 6 pm, customers will be charged Rs 10 per outward transaction.