RTGS: Stop Routing Customer Payments via Inter-Bank Window
Current · Source: Reserve Bank of India · RBI/2008-09/476 · issued 11 May 2009 · ~2 min read
Quick answerRBI has warned banks against routing customer RTGS payments through the inter-bank window after the customer window closes. This violates return discipline and may attract penalties under the Payment and Settlement Systems Act, 2007.
The rule, in the simplest words
Banks must NOT send customer payments through the inter-bank window after the customer window closes.
There is a 90-minute gap between the customer window and the inter-bank window to allow returns of failed payments.
Using the inter-bank window for customer payments breaks this return rule and is not allowed.
If a bank breaks this rule, RBI can fine it under the Payment and Settlement Systems Act, 2007.
How it plays out — a real example
A payments & clearing officer in Indore receives a late request from a high-value customer to send an RTGS payment after the customer window has closed. Instead of routing it through the inter-bank window, the officer politely explains that the payment must wait until the next day, because using the inter-bank window would violate RBI rules and could lead to a penalty for the bank.
What changed
RBI observed that many RTGS participants were pushing customer transactions into the inter-bank session after the customer window closed, likely to accommodate late high-value payments. The circular reiterates that different time windows exist for customer and inter-bank transactions, with a 90-minute gap to allow returns. Routing customer payments in the inter-bank mode breaks this discipline and is now explicitly prohibited.
What it means for you
Banks must strictly adhere to RTGS procedural guidelines and stop using the inter-bank window for customer transactions. Non-compliance will be viewed seriously and may lead to penalties under Section 30 of the Payment and Settlement Systems Act, 2007. This ensures timely return of uncredited customer payments and maintains system integrity.
What you must do
Immediately cease routing any customer RTGS payments through the inter-bank window after the customer window closes.
Review and reinforce RTGS operational procedures to ensure strict adherence to prescribed time windows for customer and inter-bank transactions.
Train RTGS operations staff on the 90-minute return discipline and the prohibition on mixing transaction types.
Monitor transaction logs to detect and correct any instances of customer payments being processed in the inter-bank session.
Who it affects
All banks participating in RTGS, RTGS operations teams, Treasury and payment system departments, Compliance and risk management functions
❓ Common questions
Why can't we route customer payments through the inter-bank window if it helps high-value clients?
The inter-bank window has a different return discipline—customer payments processed there miss the mandatory 90-minute return window, violating procedural guidelines. RBI views this as a serious breach that can attract penalties.
What is the penalty for violating this circular?
RBI has warned that violations will be viewed seriously and may attract penalty under Section 30 of the Payment and Settlement Systems Act, 2007. The exact penalty amount is not specified in this circular.
Does this circular affect all RTGS transactions or only customer payments?
It specifically targets customer transactions being routed through the inter-bank window. Inter-bank transactions in their designated window remain unaffected.
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/476
DPSS (CO) RTGS No.1959/04.04.002/2008-2009
May 11, 2009
Chairman and Managing Director /
Chief Executive Officer of all banks participating in RTGS
Dear Sir,
Usage of Inter-bank window for customer transactions
We invite a reference to our earlier circular No.RBI/2008-09/362 dated January 28, 2009 advising extension of cut off timings for various types of RTGS transactions.
It is brought to our notice that many RTGS participants are routing RTGS customer payments in the inter-bank session i.e., after the customer window is closed. This is probably done to accommodate late transactions of high net worth customers.
We advise that different time windows are prescribed for different types of RTGS transactions taking various things in to consideration. For example, a gap of one hour and thirty minutes is kept between customer timings and interbank timings to ensure that a customer transaction where credit cannot be afforded to the beneficiary would have to be returned to the sender’s account within one hour and thirty minutes. Therefore, routing of customer transactions in the inter-bank session is a violation of return discipline since the gap of one hour and thirty minutes is not maintained.
All RTGS participants are, therefore, advised to strictly adhere to the RTGS procedural guidelines and desist from the practice of pushing customer transactions in the interbank mode. Violations, if any, brought to our notice would be viewed seriously and would attract penalty under Section 30 of the Payment and Settlement Systems Act, 2007(51 of 2007).
Please acknowledge receipt of the circular.
Yours faithfully,
(G. Padmanabhan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/476 · issued 11 May 2009. The plain-English explanation above is BankPulse’s own independent summary.
Train RTGS operations staff on the 90-minute return discipline and the prohibition on mixing transaction types.
📜 Compliance
Immediately cease routing any customer RTGS payments through the inter-bank window after the customer window closes.
Review and reinforce RTGS operational procedures to ensure strict adherence to prescribed time windows for customer and inter-bank transactions.
Monitor transaction logs to detect and correct any instances of customer payments being processed in the inter-bank session.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All banks participating in RTGS, RTGS operations teams, Treasury and payment system departments, Compliance and risk management functions), your first concrete step on “RTGS: Stop Routing Customer Payments via Inter-Bank Window” is: “Immediately cease routing any customer RTGS payments through the inter-bank window after the customer window closes.” (RBI issued this 11 May 2009).
Action required: Immediately cease routing any customer RTGS payments through the inter-bank window after the customer window closes.
Action required: Review and reinforce RTGS operational procedures to ensure strict adherence to prescribed time windows for customer and inter-bank transactions.
Action required: Train RTGS operations staff on the 90-minute return discipline and the prohibition on mixing transaction types.
Action required: Monitor transaction logs to detect and correct any instances of customer payments being processed in the inter-bank session.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4982&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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