On 14 December 2020, the Reserve Bank of India (RBI) extended the operating hours of India's Real-Time Gross Settlement (RTGS) system to 24 hours a day, 7 days a week, 365 days a year. India became the first G20 nation and one of only a handful of countries globally to offer round-the-clock RTGS.
Background
India's RTGS had previously operated during business hours on weekdays - roughly 07:00 to 18:00 IST. This meant that high-value interbank settlements could only occur during these windows, creating bottlenecks at market open and close, and leaving overnight and weekend periods without settlement capability.
The Decision
The RBI announced the move in its December 2019 monetary policy statement, with implementation originally planned for April 2020. The COVID-19 pandemic delayed the rollout, but the RBI ultimately launched 24/7 operations in December 2020. The minimum transaction threshold for RTGS was also progressively reduced, eventually reaching INR 2 lakh (approximately USD 2,500).
Why It Matters
For a country of India's size and economic importance, 24/7 RTGS was significant for several reasons. Domestic corporations could settle high-value obligations outside traditional hours. Cross-border payments involving Indian counterparties could be completed across time zones without waiting for the next Indian business day. And it complemented India's already-operational UPI instant payment system by providing always-on settlement infrastructure for the high-value segment.
Global Context
At the time of launch, very few jurisdictions operated RTGS around the clock. Most G20 economies still limited RTGS to business hours. India's move was seen as a signal that the industry was trending toward continuous settlement, a theme later picked up by the ECB's consultation on extending T2 operating hours and the Bank of England's CHAPS early-morning extension.
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