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


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 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

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

What happens if the amount sent through RTGS does not reach the beneficiary?
In case, the amount transferred through RTGS does not reach your beneficiary, the same amount will be refunded to the originating account within an hour of the receipt of payment.
What does RTGS stand for?
RTGS stands for Real Time Gross Settlement.
Is there any minimum amount for RTGS transactions?
Yes. RTGS transactions allow the transfer of a minimum amount of Rs. 2 lakh. However, there is no maximum limit.
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.

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