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-
Type of Transaction | Charges Applicable |
Inward transactions | No 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 |
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