Main Note - [Payment Systems](Payment%20Systems.md) ==This is a note on RTGS, mainly based on:== 1. [Payment Systems Report (Half Yearly), June 2025, released on Oct 23, 2025.](RBI_Half-Yearly_202512_Payment%20Systems%20Report,%20June%202025_Released-Oct%2023,%202025.pdf) 2. RBI. (Jul 29, 2024). Chapter III: Digitalisation and Payment Revolution in India. Report on Currency and Finance (Annual). [pdf](RBI_Reports_20240729_Report%20on%20Currency%20and%20Finance%202023-24.pdf#page=103&selection=0,0,2,1) Here the list of all the authorised payment systems in India | Payment System | Operated by | | ---------------------- | ------------------------- | | ==**RTGS**== | ==**RBI**== | | Retail (NEFT) | RBI | | Cheques (CTS) | RBI + NPCI | | AePS | NPCI | | Toll Payments (NETC) | NPCI | | Bill Payments (BBPS) | NPCI | | Bulk Payments (NACH) | NPCI | | Fast Payments (IMPS) | NPCI | | Fast Payments (UPI) | NPCI | | MSME Financing (TReDS) | Other PSOs / Banks | | PPI | Other PSOs / Banks | | MTSS | Other PSOs / Banks | | Cards | Other PSOs / Banks + NPCI | | WLAO / NFS (ATMs) | Other PSOs / Banks + NPCI | Source - Annex–II in [Payment Systems Report (Half Yearly), June 2025](RBI_Half-Yearly_202512_Payment%20Systems%20Report,%20June%202025_Released-Oct%2023,%202025.pdf) ## Real Time Gross Settlement System (RTGS) 1. June 1999 - NFINET was launched as a closed user group (CUG) private network by [IDRBT](https://www.idrbt.ac.in/the-journey-of-idrbt/), a wholly owned subsidiary of RBI 2. December 14, 2001 - Structured Financial Messaging System (**SFMS**) was launched. It used standardized message formats for intra-bank and inter-bank applications like NEFT (launched in Nov-2005), RTGS, Delivery versus Payments (DvP) for G-Secs, CFMS for Government besides other applications of payment systems in India. 3. [March 26, 2004](RBI_Press%20Release_20040326_RTGS%20System%20goes.pdf) - Owned and operated by RBI, RTGS was introduced in India, initially only for inter-bank transactions. 4. RTGS is a payment and settlement system, where settlement happens on a real-time and gross basis. 5. In this system, the payment instructions are executed immediately, the moment they are received (‘real time’), and the settlement of each fund transfer occurs ==individually without netting (‘gross’ basis).== 6. Settlement of transactions in RTGS on a gross basis eliminates credit risk (*non-payment of banks at the end of the day*) 7. The settlement in RTGS takes place in the books of RBI and is final and irrevocable. 8. It is the only "Large Value Payment Systems (LVPS), and so RTGS are critical for smooth functioning of the financial system. 9. It is also designated as a Financial Market Infrastructure (FMI) in India, as well as a Systematically Important Payment System (SIPS). 1. List of other FMIs 2. [Criteria](Payment%20Systems.md#Criteria%20for%20declaring%20a%20payment%20system%20as%20SIPS) for a payment system to become SIPs 10. The NCIIPC (National Critical Information Infrastructure Protection Centre) also designates RTGS as a critical information infrastructure. 1. The National Critical Information Infrastructure Protection Centre ([NCIIPC](https://nciipc.gov.in/index.html)) is ==the nodal agency in India, established in January 2014 under the IT Act 2000, to protect critical information infrastructure (CII) from cyber-attacks==. Located in New Delhi, it is a unit of the National Technical Research Organisation ([NTRO](https://ntro.gov.in/welcome.do)) under the Prime Minister's Office. 11. It is also a kind of Large Value Payment Systems (LVPS), which in India are RBI-operated system viz. Real Time Gross Settlement (RTGS) and systems operated by Clearing Corporation of India Limited (CCIL). 12. Prior to implementation of RTGS in 2004, large value transfers were carried out through paper-based clearing [^1] and telegraphic transfers. 13. Thereafter, Electronic Clearing System (ECS) and Electronic Funds Transfer (EFT) were introduced in mid-1990s. 1. ECS have been replaced by NACH, and EFT was replaced by NEFT in Nov 2005. 14. These systems, however, covered a limited geographical area. 15. As a precursor to RTGS, the Reserve Bank of India (RBI implemented the Centralised Funds Management System (CFMS) [^2], which enabled funds and treasury managers of commercial banks to obtain the balances in their current accounts maintained at 17 Regional Offices of RBI's Deposit Accounts Departments (this department is overseen by the Department of Government and Bank Accounts (DGBA) in the Central Office, Mumbai) and to transfer funds across these accounts. 16. June 30, 2004 - [Box XIII.1-RTGS Implementation in India & Box XIII.2 Intra-day Liquidity under RTGS System](RBI_Annual%20Report_2004.pdf#page=195&selection=24,0,25,28) in RBI's Annual Report 2004 17. [Aug 16, 2004](RBI_Press%20Release_20040816_RTGS%20Services%20now%20for%20Bank%20Customers-%20RBI.pdf) - RTGS Services became available now for Bank Customers (customer related transfers). Straight Through Processing (STP) at the bank's end means ==customer transactions are processed electronically from initiation to final settlement without manual intervention==. It eliminates manual data entry, reduces errors, and enables near real-time, 24/7 transaction processing, enhancing speed and security. 18. Aug-2004 - 72 banks were participants of the RTGS System for inter-bank settlement, accounting for more than 90% of the total value of inter-bank settlement in Mumbai by Aug-2004. 19. Nov-2005 - NEFT was launched by RBI. 20. ==Both RTGS and NEFT were developed at IDRBT using the SFMS and INFINET infrastructure.== 21. 2006-07 - The multilateral net settlement batch mode to facilitate settlement of various CCIL-operated clearings (interbank government securities, interbank foreign exchange, CBLO (now [TREPS](Repos%20and%20Tri-Party%20Repo.md#Triparty%20Repo)) and national and national financial switch) was operationalised through RTGS in Mumbai in 2006–07) 22. 2006–07 - An internal group constituted by the Bank in 2006–07 examined various aspects of payment systems, particularly relating to switching over to electronic modes. 23. Jan 1, 2007 - Based on the recommendations of the group, customer-based RTGS transactions was enhanced to 1 lakh 24. [Jan 28, 2009](RBI_Notification_20090128_Extension%20of%20service%20window%20for%20RTGS%20transactions.pdf) - Timings for RTGS transactions were extended 25. [December 31, 2012](RBI_Press%20Release_20121231_Adoption%20of%20ISO%2020022%20messaging%20standard%20in%20Next%20Generation%20RTGS%20(NG-RTGS)%20system.pdf) - RBI decided ISO 20022 compliant message formats for the proposed NG-RTGS system which would replace the existing RTGS system, and asked banks to be ready by March 31, 2013 with the technical capabilities to handle ISO 20022 message format to participate in NG-RTGS system. 26. Oct 11, 2013 - [RTGS System Regulations 2013](http://rbidocs.rbi.org.in/rdocs/RTGS/PDFs/RTGSB111013_2013.pdf) came into effect from October 19, 2013. 1. It replaced the the RTGS (Membership) Business Operating Guidelines, 2004 and RTGS (Membership) Regulations, 2004 27. [Oct 19, 2013](RBI_Press%20Release_20131019_RBI%20Governor%20launches%20new%20ISO%2020022%20compliant%20RTGS%20System.pdf) - New ISO 20022 compliant RTGS System was launched 28. [June 20, 2014](RBI_Notification_20140620_New%20features%20in%20RTGS%20System.pdf) -  ‘Hybrid’ and ‘Future value dated transaction’ features in the system would be enabled with effect from July 14, 2014. 29. [Sept 1, 2015](RBI_Notification_20150901_Changes%20in%20RTGS%20time%20window.pdf) - Changes were made in RTGS time window 30. Aug 2018 - [Box IX.1-Endpoint Security in RTGS](RBI_Annual%20Report_2018.pdf#page=179&selection=128,0,129,25) in RBI's Annual Report 2018 31. [November 15, 2018](RBI_Notification_20181115_Real%20Time%20Gross%20Settlement%20(RTGS)%20System%20-%20Implementation%20of%20Positive%20Confirmation.pdf) - Real Time Gross Settlement (RTGS) System - Positive Confirmation was implemented in RTGS system, like NEFT 32. [May 28, 2019](RBI_Notification_20190528_Real%20Time%20Gross%20Settlement%20(RTGS)%20System%20–%20Extension%20of%20Timings%20for%20Customer%20Transactions.pdf) - Timings for Customer Transactions were extended 33. [June 11, 2019](RBI_Notification_20190611_National%20Electronic%20Funds%20Transfer%20(NEFT)%20and%20Real%20Time%20Gross%20Settlement%20(RTGS)%20systems%20–%20Waiver%20of%20charges.pdf) -  RBI decided the processing charges and time varying charges levied on banks by Reserve Bank of India (RBI) for outward transactions undertaken using the RTGS system will be waived, as also the processing charges levied by RBI for transactions processed in NEFT system will be waived by the Reserve Bank. 34. [Aug 21, 2019](RBI_Notification_20190821_Real%20Time%20Gross%20Settlement%20(RTGS)%20System%20–%20Increase%20in%20operating%20hours.pdf) - Operating hours were increased 35. [October 09, 2020](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50480)- In the Statement on Developmental and Regulatory Policies dated October 09, 2020, RBI announced making available the Real Time Gross Settlement (RTGS) system round the clock on all days. 36. [December 04, 2020](RBI_Notification_20201204_24x7%20Availability%20of%20Real%20Time%20Gross%20Settlement%20(RTGS)%20System.pdf) - RTGS was made available round the clock on all days of the year (24x7x365) with effect from 00:30 hours on December 14, 2020. 1. The operational timings for RTGS were increased multiple times since its introduction in 2004. 2. In 2013, when RTGS was upgraded to NG-RTGS, the operational timings were set as 09:00 to 19:30 hours on weekdays and 09:00 to 15:30 hours on Saturdays. 3. From August 26, 2019, RTGS timings were 07:00 to 19:45 hours. 4. From December 14, 2020, RTGS was made available on a 24x7x365 basis, making India one of the first countries to have a round-the-clock RTGS system. 5. The response to round-the-clock availability of RTGS has been positive with an increasing number of transactions being undertaken during the extended operating hours. 37. [RTGS 24X365, Including Lessons from the Country Experience](RBI_Annual%20Report_2021.pdf#page=222&selection=47,0,48,58) in RBI's Annual Report_2021 38. [October 21, 2024](RBI_20241025_Real%20Time%20Gross%20Settlement%20System%20Regulations.pdf) - RTGS System Regulations (version 1.0) was issued. 1. It replaced the RTGS System Regulations, 2013 39. [December 30, 2024](RBI_Notification_20241230_Introduction%20of%20beneficiary%20bank%20account%20name%20look-up%20facility%20for%20Real%20Time%20Gross%20Settlement%20(RTGS)%20and%20National%20Electronic%20Funds%20Transfer%20(NEFT)%20Systems.pdf) - RBI decided to put in place a similar facility that would enable a remitter to verify the beneficiary bank account name before initiating a transaction using RTGS or NEFT system. This allowed remitters, using RTGS and NEFT systems, to verify the name of the bank account to which money is being transferred before initiating the transfer and thereby avoid mistakes and prevent frauds. Based on the account number and IFSC of the beneficiary entered by the remitter, the facility fetches the beneficiary’s account name from the bank’s Core Banking Solution (CBS 40. **Membership** 1. [January 17, 2017](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10833) - Master Directions on Access Criteria for Payment Systems 1. The provisions of these directions shall apply to all scheduled/ licensed banks/PDs/authorised payment system providers (PSPs) who are desirous of participation (membership) in payment systems in India, operated by the RBI - RTGS, NEFT, CTS (managed by RBI) and ECCS (managed by other banks)### Transfer Limits 2. While the minimum amount that can be transferred through RTGS for a customer transaction is Rs 2,00,000, there is no upper limit for such transactions. There are no minimum or maximum limits for interbank transactions. 41. **Participants of RTGS** - There are four types of participants in RTGS 1. Central Bank – exclusively for the Bank 2. regular participant – all types of facilities to be provided (e.g. banks), 3. restricted participant – some particular type(s) of facilities to be provided (e.g. Primary Dealers) and 4. clearing house – permitted to submit MNSB file to RTGS >[Information](https://rbi.org.in/Scripts/FS_UsefulInfoCustomer.aspx?fn=9) useful to banks/FIS relating payment systems >[RTGS](RBI_History%20of%20The%20Reserve%20Bank%20of%20India%20(1997-2008)_Volume%20V.pdf#page=335&selection=43,0,43,12) in History of The Reserve Bank of India (1997-2008)-Volume V ### Intraday Liquidity 1. ==RTGS also settles Multilateral Net Settlement Batch (MNSB) files emanating from retail payment systems like Unified Payments Interface (UPI), Immediate Payment Service (IMPS), Aadhaar-enabled Payment System (AePS), National Electronic Toll Collection (NeTC), National Financial Switch (NFS), and National Automated Clearing House (NACH).== 1. So Being a large value payment system that settles on a gross basis, RTGS requires liquidity on an intraday basis. Arrangement of such funding by participants would entail a cost to them while non availability of funds will lead to delay in outgoing payments. To facilitate smooth settlement of RTGS transactions, Intra-day Liquidity (IDL) facility is made available to eligible RTGS participants. IDL is provided to participants against collateral and must be reversed on the same day. ### Messaging System 1. Implementation of ISO 20022 messaging standards in RTGS 2. RTGS system uses the Structured Financial Messaging System (SFMS) over the Indian Financial Network (INFINET) for secure transfer of messages between RBI and participating institutions. 3. A major upgrade to the system was made in 2013, when the Next Generation – RTGS (NG-RTGS) was implemented. NG-RTGS supported financial messaging in the ISO20022 message formats, among other advanced features. This made India one of the first countries to implement the ISO20022 standard in RTGS. 4. The ISO 20022 messaging system standardises the format and content of financial messages. This enables straight-through processing (STP), hence streamlining transactions, accelerating settlement times, and lowering operational costs. Adoption of ISO 20022 messaging standard has also been identified by the G20 as one of the requirements for improving the efficiency of cross-border payments. ### Impact of RTGS 24x7x365 1. The round-the-clock availability of RTGS has also facilitated processing of settlement files of retail payment systems (UPI, NACH, IMPS, etc) during weekends and increased the number of daily settlements. This has reduced settlement risk and has enhanced the efficiency of the overall payments ecosystem in the country. 2. The 24x7x365 availability of RTGS has made it possible for other retail payment systems, that post multilateral settlement files in RTGS, to also operate on a 24x7x365 basis. 3. One of the targets in the G20 roadmap for enhancing cross border payments is “adapting operating timetables for critical infrastructures and market participants to enable greater overlap of settlement windows”. Extending the operating hours of RTGS ensures overlap with payment systems of other jurisdictions in different time zones. 4. The introduction of RTGS on 24x7x365 basis was a transformative milestone in the India’s payment infrastructure, enabling seamless, round-the-clock high-value fund transfers, eliminating the constraint of banking hours and holidays. With this initiative, India entered a select group of countries offering uninterrupted RTGS. 5. Soon after RTGS was made available 24x7x365, a noticeable surge in the number of transactions was observed. The volume of RTGS transactions increased from 14.6 crore in the CY 2020 to 20 crore in CY 2021. In terms of value, during this period, RTGS transactions grew by 18.3 per cent, from ₹1,053 lakh crore to ₹1,246 lakh crore. The surge continued in 2021 even during the period of second nationwide COVID-related lockdown. 6. In CY 2021, 92 per cent of the total RTGS transactions were conducted during regular business hours (08:00 to 18:00 hours), while the remaining 8 per cent took place outside business hours. By CY 2024, the share of transactions, conducted outside business hours (between 18:00 hours to 08:00 hours on the next day), had increased to 19 per cent in terms of volume, and 16 per cent in terms of value ([Chart 24](https://rbi.org.in/scripts/PublicationsView.aspx?Id=23436#C24)). This trend indicates growing adoption and popularity of the RTGS 24x7x365 system. ### Statistics 1. [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=23436) ### Management 1. RTGS is operated by the Bank under the supervision of the Regional Director, Reserve Bank of India, Mumbai Regional Office, Shahid Bhagat Singh Marg, Fort, Mumbai 400 001. ### Regulations 1. [October 2013](RBI_201310_Real%20Time%20Gross%20Settlement%20(RTGS)%20System%20Regulations,%202013.pdf) - RTGS System Regulations, 2013 was issued, under the Payment and Settlement Systems Act, 2007 and Payment and Settlement Systems Regulations, 2008. 1. It replaced RTGS (Membership) Business Operating Guidelines, 2004, RTGS (Membership) Regulations, 2004 2. Amendments to RTGS System Regulations, 2013 1. [February 2017](https://rbi.org.in/scripts/BS_ViewRTGS.aspx?id=34) 2. [April 2018](https://rbi.org.in/scripts/BS_ViewRTGS.aspx?id=36) 3. [May 2019](https://rbi.org.in/scripts/BS_ViewRTGS.aspx?id=39) 4. [July 2019](https://rbi.org.in/scripts/BS_ViewRTGS.aspx?id=40) 5. [December 2020](https://rbi.org.in/scripts/BS_ViewRTGS.aspx?id=42) 2. [October 21, 2024](RBI_20241025_Real%20Time%20Gross%20Settlement%20System%20Regulations.pdf) - RTGS System Regulations (version 1.0) was issued. 1. It replaced the RTGS System Regulations, 2013 3. RTGS is supervised under the [oversight framework for FMIs and retail payment systems](Oversight%20of%20Payment%20Systems.md) ## Supervision 1. RTGS is supervised under the [oversight framework for FMIs and retail payment systems](Oversight%20of%20Payment%20Systems.md) ## Benchmarking 1. [Benchmarking of India's payment systems](Payment%20Systems.md#Benchmarking) ## Self-Assessment of RTGS system against PFMIs 1. [Public Disclosure Report based on Self-Assessment of RTGS System against PFMIs - 2024](https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=23151) ## Related Notes 1. [Oversight of Payment Systems](Oversight%20of%20Payment%20Systems.md) ## References [Link](Payment%20Systems.md#References) [^1]: [https://www.rbi.org.in/scripts/AnnualReportPublications.aspx?year=2004](https://www.rbi.org.in/scripts/AnnualReportPublications.aspx?year=2004) [^2]: [https://www.rbi.org.in/scripts/AnnualReportPublications.aspx?year=2000](https://www.rbi.org.in/scripts/AnnualReportPublications.aspx?year=2000)