RTGS: What is RTGS?

RTGS stands for Real Time Gross Settlement. It is a money transfer system that allows the transfer of funds from one bank account to another in real-time and on a gross settlement basis. The term, ‘real-time’ implies that transactions through RTGS are processed right when they are initiated by the sender, and ‘gross settlement’ means that the instructions regarding the transfer of funds occur on a one-to-one basis.

Learn more about what is RTGS and how RTGS transactions work.

Understanding the Features of RTGS

Here’s all that you need to know about money transfer through RTGS-

• 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

Why RTGS?

The real time gross settlement service 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

Read More: NEFT vs RTGS: What's the Difference?

Charges Applicable on RTGS Transactions

The following charges are applicable on transactions made through RTGS-

Points to be Considered

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