(Bloomberg) -- Companies and consumers soon will be able to send as much as $10 million instantly via the bank-owned RTP network, an increase from $1 million that could ease large transactions such as real estate payments or merchant bills.
The Clearing House’s RTP — or real-time payments — network is unveiling the increase in individual-transaction limits, which will go into effect Feb. 9, as the movement of money is increasingly global and occurring at all hours. The Clearing House is owned by 22 of the world’s largest banks, including Bank of America Corp., Wells Fargo & Co. and Citigroup Inc.
“Customers already benefit from the system’s around-the-clock availability, with 42% of transactions taking place overnight, on weekends, or holidays,” Margaret Weichert, chief product officer for The Clearing House, said in a statement. “This aligns with how businesses operate in today’s 24/7 economy.”
The increase could be helpful for consumers purchasing a pricey home, as one example of a use for large money transfers, said Matt Richardson, executive vice president and head of product solutions for Citizens Financial Group Inc.’s commercial-banking group.
“That’s a spot where a consumer could benefit, say, on a Saturday morning,” for closing on a $2 million home, he said in an interview.
The RTP network, rolled out in 2017, competes with the Federal Reserve’s FedNow instant-payments system. That service caps individual transactions at $500,000.
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