The Clearing House raises the RTP limit to a $1 million
The Clearing House, which operates the real-time payments (RTP) network in the US has announced that it has increased the value limit of the payments made on its network to $1 million. As the users on the RTP network continue to grow, the corporates are looking for methods to send high-value translation for purposes such as real estate closings, commercial loan funding, merchant settlement, and supplier payments.
The increase has been made from the previous limit of $100,000 and it also follows the recent increase to the Same-Day ACH transaction limit, which took place on March 18, 2022.
In similar news, Nacha implements the same-day ACH expansion in March 2022.
Director of Treasury and Financial Management at Michigan State University, Jeff Rayis noted the different use cases which are beneficial to the limit increase such as “business-to-business payment applications, such as supplier payments, loan payments, joint-venture and partnership arrangements, and research obligations”.
As stated, the RTP network provides the banking industry with a platform for ‘domestic payments, complete with rich data capabilities and immediate payment confirmation’. The system currently reaches 61% of U.S. demand deposit accounts and all federally insured depository institutions and there are over 230 financial institutions connected to the RTP network.
The Clearing House is an industry-owned consortium that operates U.S.-based payments networks that clear and settle more than $2 trillion each day through the wire, ACH, check image, and real-time payments.