RTGS – Increase in Threshold Limit – 1 lac to 2 lacs -

RTGS – Increase in Threshold Limit – 1 lac to 2 lacs -

RTGS is a familiar word for all associated with financial industry or any business. In a sense, more than the Bankers, Business users are more familiar with RTGS.

RTGS in our country was rolled out in May 2004, and in the last 6 years, the RTGS growth has exceeded all expectations.

The credit for this spectacular performance must be shared by Reserve Bank of India, IT vendors, Banks and the Bank’s Customers.

To keep up the pace in RTGS modifications, Reserve Bank of India, DPSS has announced change in the threshold amount for RTGS Transactions.

Existing Threshold Amount: Rs.1 lac.

Revised Threshold Amount: Rs.2 lacs.

The revised guidelines will be effective from 15/11/2010

The notification can be accessed @ http://goo.gl/nQCYW

Initially, there might be a fall in the RTGS volumes, but there will be corresponding increase in the NEFT Volumes.

By March, 2011, the shortfall will be covered up.

Not many changes will be required in the Bank’s infrastructure.

Only Staff at Bank’s Touch Points/Customers will have to sensitized.

However, with the revised threshold amount being widely discussed in Print/Electronic Media, business forums, etc, the news will spread fast, in a quick span of time.

Long time back, RBI, had insisted for Banks to ensure that the IFSC’s for RTGS and NEFT are common. Hence, the customer’s too would not feel the pinch of shifting transactions from RTGS to NEFT