Can individuals make payments through RTGS system?
Yes, individuals can transfer funds through RTGS system through their banks. Though the system is primarily designed for large value payments, bank customers have the choice of availing of the RTGS facility for their time critical low value payments as well. There is no definition of “low value” or “large value” for the purpose of RTGS transaction. As on 31 July 2005, RTGS facility was available at more than 7500 bank branches at 401 cities and towns in India. RBI plans to make the facility available at a minimum of 10,000 branches by March 2006. At present, not all bank branches are enabled to process RTGS system funds transfer. A customer who desires to use this facility should approach his bank to find out whether his own bank branch as well as the beneficiary’s bank branch is enabled to transfer funds through RTGS system. Banks may levy charges for such funds transfers at their discretion and based on the customer-bank relationship. The customer, in turn, is entitled to claim inter
