Page 54 - Banking Finance December 2020

RBI CIRCULAR

2. An authorised PPI Issuer or a PA is required to maintain 24x7 Availability of Real Time Gross
an escrow account with a scheduled commercial bank
on an ongoing basis. With a view to diversify risk and Settlement (RTGS) System
address business continuity concerns, it has been
RBI/2020-21/70
decided to allow one additional escrow account in a
different scheduled commercial bank. The relevant December 04, 2020
instructions are being modified as per Annex 1 and 2
1. A reference is invited to the Statement on
to this circular.
Developmental and Regulatory Policies dated October
3. These directions are issued under Section 18 read with 09, 2020 wherein Reserve Bank of India (RBI) had
Section 10(2) of the Payment and Settlement Systems announced making available the Real Time Gross
Act, 2007.
Settlement (RTGS) system round the clock on all days.
Accordingly, it has been decided to make RTGS available
(P. Vasudevan)
Chief General Manager round the clock on all days of the year with effect from
00:30 hours on December 14, 2020.

Discontinuation of Returns/Reports 2. Members are advised as under:
under Foreign Exchange Management i) RTGS shall be available for customer and inter-bank
transactions round the clock, except for the
Act, 1999 interval between ‘end-of-day’ and ‘start-of-day’
RBI/2020-21/66 processes, whose timings would be duly
November 13, 2020 broadcasted through the RTGS system.

1. The attention of Authorised Persons is invited to the ii) RTGS shall continue to be governed by the RTGS
Master Direction - Reporting under Foreign Exchange System Regulations, 2013, as amended from time
Management Act, 1999 dated January 01, 2016, as to time. The revised Regulations are available on
amended from time to time, and other reporting RBI’s website at: https://www.rbi.org.in/Scripts/
related instructions issued by the Reserve Bank of India. Bs_viewRTGS.aspx.
2. With a view to improve the ease of doing business and iii) Intra-Day Liquidity (IDL) facility shall be made
reduce the cost of compliance, the existing forms and available to facilitate smooth operations. The
reports prescribed under FEMA, 1999, were reviewed Intra-Day Liquidity (IDL) availed, if any, shall be
by the Reserve Bank. Accordingly, it has been decided reversed before the ‘end-of-day’ process begins.
to discontinue the 17 returns/reports as listed in the
3. Members are advised to put in place necessary
Annexure with immediate effect.
infrastructure to provide RTGS round the clock to their
3. The Master Direction - Reporting under Foreign customers. RTGS transactions undertaken after normal
Exchange Management Act, 1999 dated January 01,
banking hours are expected to be automated using
2016, shall accordingly be updated to reflect the above
‘Straight Through Processing (STP)’ modes.
changes. AD banks may bring the contents of this
circular to the notice of their constituents. 4. Members are further advised to disseminate
4. The directions contained in this circular have been information on the extended availability of RTGS to all
issued under Section 10(4) and 11(2) of the Foreign their customers.
Exchange Management Act, 1999 (42 of 1999) and are 5. This directive is issued under Section 10 (2) read with
without prejudice to permissions/approvals, if any, Section 18 of Payment and Settlement Systems Act,
required under any other law.
2007 (Act 51 of 2007).
(Ravinder Singh Amar)
Chief General Manager (P Vasudevan)
Chief General Manager

54 | 2020 | DECEMBER | BANKING FINANCE