New RTGS Rules To Boost The Adoption of Digital Payments

Must Read

Skeletons in the Closet? Google-Facebook Involved in Secret Online Advertising Deal

If you can’t beat ‘em, join ‘em. And when two titans happen to decide upon an alliance,...

Smartphone Resale Value: Depreciation Is Surprising Enough [REPORT]

It's a tad cliché and true that smartphones have permeated every sphere of our life. The ceaseless...

“Open Up Cambridge Analytica, It’s CBI At the Door!”

Among all the establishments ensnared in deplorable acts, Cambridge Analytica has steadily climbed the ladder of infamy....

The government of India (GOI) has defined new RTGS rules for banking customers who largely rely on internet banking for a large sum of transactions.

For the last few years, GOI is constantly working towards the direction of the digital economy by pushing the adoption of digital payments. The new RTGS rule is another step to make more people rely more on RTGS than the conventional method of payment through cheques.

From December 01, 2020, all the internet banking customers can make use of RTGS round the clock and all the seven days of a week.


RTGS is meant for large sum transfer, any amount over Rs 2 lakh. Until now, RTGS facility was available for customers from morning 7AM to 6PM on working days only.

RTGS (Real Time Gross Settlement) is a facility that is used by internet banking customers who want to transfer a large sum of money for immediate credit in the beneficiary account in full.

The exploded adoption of smartphone and high-speed mobile internet is resulting in deep penetration of mobile banking in India. There are over 650 million internet users in India and a sizeable share of those makes use of internet banking nowadays.

While the number of NEFT surged to a new record high in the last few years, users are still hesitant to do a RTGS transaction due to the large sum involved. In August 2020, 1.16 crore RTGS transactions, amounting to Rs. 7,292,380 crore, were recorded. The growth in the number of RTGS transactions were little disappiinting as compared to NEFT transactions.

With the availability of round-the-clock RTGS transfer facility, the Indian government is expecting to win the confidence of traditional business owners who are still relying on cheques and cash mode of transactions.


“To support the ongoing efforts aimed at global integration of Indian financial markets, facilitate India’s efforts to develop international financial centres and to provide wider payment flexibility to domestic corporate and institutions, it has been decided to make RTGS available round-the-clock on all days”, RBI Governor Shaktikanta Das said.

India is now among the very few countries that have such a financial openness and allows large sum of transaction 24x7x365.

Last year RBI stopped levying any charges on on NEFT and RTGS in a bid to promote digital transactions in India.

How the new timing of RTGS transaction will help the government’s objective is something that only time will tell. The RTGS transaction number of the next few months will paint a clear picture. Until then we need to wait and watch.

What’s your views on the new RTGS rule? do you think that’s lucrative enough to win the confidence of traditional business owners or the government needs to do a lot more? Do let us know your views in the comment section below.


Please enter your comment!
Please enter your name here

Latest News

Judgement Day For LG: Time To Bid Adieu To Smartphone Market!

When the going gets tough, the tough get going. But that doesn't seem to fit in case...

Amazon Prime Video: End Of Subscriber Hunt And Beginning Of An Ad-Fuelled Future!

The streaming landscape of India is going through a rapid transformation. Seems like it is no longer about raking in subscribers by...

Why Is Retargeting Touted As A Secret Weapon For Success By Online Marketers

You know that ads play an important role in driving people to your website if you run a small business and sell...

Happy B’day Chad Hurley: The Co-Founder Of The World’s Largest Video Library

Chad Hurley never cared about success, he mended his ideas and tried to garner the fruits from those. But not every time...

Encouraged By Record Profit of RIL, Ambani Wants To Accelerate 5G Arrival in India

Brace yourselves for the sooner-than-anticipated arrival of  Reliance Jio 5G services because the 63-year-old billionaire tycoon Ambani recently pledged to the speedy launch...

How Mobile Is Becoming A Catalyst Of Online Gambling Market Growth

The global online gambling market is now one of the biggest and it is expected to grow up to 127.3 billion US...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This