As per the recent notification issued by the Reserve Bank of India (RBI), all Scheduled and non-scheduled Banks (all public, private, foreign, cooperative, regional rural and local area banks) will observe public holiday on second and fourth Saturdays of every month (w.e.f. Sep 2015). Banks will also observe full working days on Saturdays other than second and fourth Saturdays.
Accordingly, payment systems like RTGS (Real Time Gross Settlement), NEFT (National Electronic Fund Transfer), Cheque Clearing etc., will not be operated on second and fourth Saturdays but would be available for full day on working Saturdays and Regular days.
Also, Processing of future value dated transactions with value date falling on second and fourth Saturdays will not be undertaken under RTGS and ECS suite (Electronic Clearing Service).
RTGS New Timings
Currently, RTGS business hours are from 8:00 AM to 8:00 PM on week days and 8.00 AM to 3:30 PM on Saturdays. The RTGS time window with effect from September 1, 2015 will be as under:
What is RTGS?
It is the fastest way to transfer money electronically. Under RTGS, the money transfer transactions are settled individually and instantly. The beneficiary (payee) generally receive the credit real time (within few minutes).
RTGS is generally used for high value transactions. The minimum transaction limit is Rs 2 Lakh and there is no maximum transaction limit, but may vary from bank to bank.
What is NEFT?
NEFT is a type of fund transfer which happens between two banks on net settlement basis.If you book a money transfer under NEFT, it is not settled or processed immediately. The settlement happens in batches on an hourly basis. The settlement takes place with all transactions received till the particular cut-off time. The beneficiary (payee) generally receive the credit within 1 or 2 hours.
Latest News (16-Dec-2019) : Effective from today (16-Dec-2019), National Electronic Funds Transfer (NEFT) System is available on 24×7 basis, on all days of the year, including holidays.
Latest update (28-May-2019) : RBI extends timing for Fund Transfer RTGS till 6 pm from 1st June, 2019.
(Image courtesy of [Stuart Miles] / FreeDigitalPhotos.net)