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Reserve Bank of India Experiences a Technical Glitch; NEFT and RTGS Go Down for Half a Day!


Electronic money transfer is something that has changed the way people used to transact. It has offered a way more convenient method that goes along the lines of modernity and the need of recent times.

The most widely used and popular mediums of transferring money between bank accounts in India are NEFT and RTGS. While NEFT has neither minimum nor maximum limits, RTGS is designed for heavier sums of money with 2 lac being the minimum amount and 10 lac being the maximum per day.

Per reports, National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) were disrupted for more than half a day. The signs of this started to show from Monday midnight.

Sources mention that this happened because of a technical glitch in the systems of the Reserve Bank of India. Nevertheless, NEFT and RTGS have been reinstated after inactivity of 12 hours.

Several reports reveal that the main issue allegedly was grappled by the Indian Financial Technology and Allied Services (IFTAS), which is an RBI affiliated branch when the “disaster recovery site” was being moved from locale A to B.

Sources impart that the NEFT transactions have as of now been brought back. The “end-of-day” RTGS transactions of the previous day are being worked on to get them to reach completion but the “start-of-day” for RTGS hasn’t ensued yet. Still, the restoration of RTGS is expected soon.

The setup for NEFT was established and supported by the Institute for Development and Research in Banking Technology. People will now be able to use this medium for online transferring of funds and money 24x7. Meaning that holidays or weekends would never come in the way of money transfers and funds would be transferred any day and at any time at all.

NEFT and RTGS are the most commonly used routes for online transfer of funds.

The former medium facilitates a provision for limitless one-to-one transfer of money from and to individuals and corporates with an account in any bank branch in the country. The latter, however, has the aforementioned limits and is a continuous and real-time settlements of fund transfers.

Bitcoin No More the World's Most Used Cryptocurrency, as Tether Takes Over

If someone were to ask you "what's the world's most used cryptocurrency?” you'd probably say "Bitcoin," which accounts for 70% of the world's market value digital assets. But in reality its Tether, which is now the world's most used cryptocurrency.

Although precise numbers on trading measures are arduous to get in this misty business environment, statistics from CoinMarketCap.com point that the Tether is the highest daily and monthly valued cryptocurrency, even though its market capitalization is 30% less.



In April, Tether's profit outdid Bitcoin for the first time, and since early August, it has steadily exceeded it at the rate of $21 billion per day, says CoinMarketCap.com. With its steadily trading volume nearly 18% greater than Bitcoin, Tether has no doubt become one of the most significant coins in the crypto sector.

It's also the leading cause why governors view cryptocurrencies with skepticism and have set a halt on crypto exchange-traded supplies among distress of business administration.

"Without Tether, we would have suffered a heavy cost of the regular amount -- about $1 billion or higher depending on the information reference, ” says Lex Sokolin, co-head, global financial technology at ConsenSys, which extends blockchain technology services.

"Few concerning possible tappings of dealing in the business may begin to drop off,” says Lex.

The reason being is Tether is the most accepted steady coin around the globe, as it avoids price fluctuations through stocks. Tether is also a road to the crypto market for most of the world's existing businesspeople. 'For instance, in China, a trading giant where cryptocurrency is outlawed, people can comfortably spend for cash with tethers on the tables without any uncertainty or mistrusts,' says Lex 'and furthermore they can swap it for bitcoins and distinct cryptocurrencies.'

Is it safe? 

However, many people don't truly rely on Tether, says Thaddeus Dryja, a research scientist at the Massachusetts Institute of Technology. People think of Tether as some money in their account, without actually realizing that they are using it, he says.

'Some trades unspecified their folios, to send the idea that customers are holding money rather than Tethers,' said Thaddeus.