RBI raises electronic fund transfers limit through RTGS system to Rs 2 lakhs
In a notification dated November 3, 2010 Reserve Bank of India (RBI) has increased the threshold limit for fund transfer under Real Time Gross Settlement (RTGS) system to Rs 2 lakhs from present Rs 1 lakh, effetive November 15, 2010.
As per Notification "It has been decided to increase the threshold limit for RTGS transactions from the present limit of Rs 1 lakh to Rs 2 lakh," Under the RTGS system high-value transfers of money from one bank to another on a real-time and gross basis takes place. The RTGS system had witnessed excellent growth both in terms of transactions and values since the scheme was launched in 2004.
The RBI had said in its second quarter monetary policy review, "With the increased number of electronic payment transactions, it has become expedient to position the Indian RTGS system primarily for processing and settling large value payment orders,"
For retail bank customers with electronic transactions between Rs 1 and Rs 2 lakh, the NEFT mode provides for a near real-time settlement finality, with 11 settlement cycles in a day. "The revised threshold limits for customer transactions in RTGS system and revised NEFT service charges will be implemented with effect from November 15, 2010," the RBI said.
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