How to do RTGS Transaction?

byMehak BaglaLast Updated: August 19, 2022
How to do RTGS Transaction

RTGS stands for Real-time Gross Settlement, meaning that through this method, the money is transferred from one bank account to the other in real-time, without any delay. RTGS works out as the best payment method if you need to transfer an amount equal to or more than Rs. 2 lakh in real time. RTGS does not follow any specific processing method unlike NEFT; hence, the funds are settled in real-time, without any delay. Through RTGS, each transaction gets processed with every instruction, which makes the money transfer process easier and faster.

  • Transactions made through RTGS are processed on a one-to-one basis
  • RTGS facility can be accessed at any time, on any day of the year
  • The Real Time Gross Settlement method is mostly used for transactions of high value
  • The RTGS service can be used using both online and offline modes
  • To process transactions through RTGS, the following details must be provided-
    • Amount to be transferred
    • Bank Account number
    • Beneficiary’s name
    • Bank’s branch
    • Beneficiary’s IFSC
    • Beneficiary’s bank branch

Let’s understand how you can use the above details to do an RTGS transaction!

The Online RTGS Process

Follow the given steps to do RTGS transaction online-

  • Log in to the your internet banking account
  • On the main page, click on ‘Fund transfer’
  • From the drop down menu that appears, select ‘RTGS’
  • Note that you need to ‘Add beneficiary’ to the list of beneficiaries in your account if you haven’t done so already
  • To add a new beneficiary, you need to click on ‘Add beneficiary’ option on the page
  • Enter the beneficiary’s required information such as his/her name, bank account number, IFSC, etc.
  • Click on ‘Confirm’ or ‘Add’
  • To authenticate this step, you will be asked to enter the OTP sent to your registered mobile number
  • After doing so, your action would be processed. It will take around 24 hours to add a beneficiary
  • Once the beneficiary is added to your account, you need to select the beneficiary details (to whom you need to send the money) from your list of beneficiaries
  • Enter the amount that needs to be transferred and confirm your transaction
  • Click on ‘Confirm’ and the amount will be transferred from your bank account to the other’s

The Offline RTGS Process

To do RTGS transaction offline, follow these steps-

  • Visit the nearest RTGS-enabled bank branch
  • Request the concerned official to provide you with a RTGS fund transfer form; and fill it right away
  • Ensure that you enter the details such as Name, Beneficiary’s Account Number, amount to be transferred, Beneficiary’s Bank’s Name, and IFSC very carefully
  • Fill a cheque with the amount of the RTGS transaction and attach it with the fund transfer form
  • After you have verified the details entered, submit the form to the concerned bank official
  • Upon successful completion of your request, the amount will be deducted from your account and will be transferred to the beneficiary’s account

RTGS Timing

As per the RBI guidelines, RTGS transactions can be performed at any time and on any day of the year. This means that users can perform RTGS transactions 24*365 days!

RTGS Charges

The following charges are applicable on transactions made through RTGS-

Type of TransactionCharges Applicable
Inward transactionsNo charges
Online transactions (Internet/Mobile Banking)No charges
Outward transactions (amount = Rs. 2 lakh – Rs. 5 lakh)Rs. 30
Outward transactions (amount < Rs. 5 lakh)Rs. 55

Advantages of RTGS Transactions

The real time gross settlement service (RTGS) is preferred by many users due to the following reasons-

  • Since it is managed by the Reserve Bank of India, RTGS is a safe and secure method of transferring funds
  • RTGS allows the real-time transfer of funds
  • There are no additional charges applicable on the transactions made through RTGS
  • The RTGS services can be accessed at 24*7, throughout the year
  • The transactions to be made through RTGS can be initiated from anywhere using internet banking
  • All the RTGS transactions are backed legally; hence, there is minimal risk of frauds

Points to be Considered while Doing RTGS Transaction

While initiating transactions through RTGS, the following points must be kept into consideration-

  • Before you begin to initiate a payment through RTGS, you must add the beneficiary to your account. To do so, you must provide the beneficiary’s name, bank account number, account type, bank name, and IFSC
  • The minimum amount that can be transferred via RTGS is Rs. 2,00,000
  • There is no maximum limit on the amount that can be transferred through RTGS
  • The RTGS service is available 24*7, all throughout the year
  • To clearly identify a transaction made through RTGS, each transaction is allotted a UTR number, which is a 22 characters long code, unique to each transaction

To Conclude:

RTGS transactions can be done using both, online and offline methods. While the online method involves a few easy steps, it requires users to have active internet banking. On the other hand, the user will have to visit the nearest RTGS-enabled bank branch to perform the transaction offline.

How to do RTGS transaction?
You can do RTGS transactions using both, online and offline ways. To do the transaction online, you must have active internet banking. On the other hand, if you want to perform the RTGS transaction offline, you will have to visit your nearest RTGS-enabled bank branch and submit a fund transfer form.
What are RTGS timings?
RTGS transactions can be performed at any time and on any day of the year. This means that users can perform RTGS transactions 24*365 days!
What is the RTGS transfer limit?
The minimum amount required to perform an RTGS transaction is Rs. 2 lakh.
Are RTGS transactions chargeable?
There are some additional charges on outward RTGS transactions. For instance, you may have to pay an amount of Rs. 30 on outward transactions between Rs. 2 lakh and Rs. 5 lakh and Rs. 55 on outward transactions of more than Rs. 5 lakh.
When should I use RTGS to transfer money?
RTGS is best suitable for transactions that must be settled in real-time, and that have a minimum amount of Rs. 2 lakh.
What is RTGS full form?
The full form of RTGS is Real Time Gross Settlement.

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