RTGS - Real Time Gross Settlement
The term Real-Time Gross Settlement (RTGS) refers to a funds transfer system through which you can send money and/or securities instantly.
RTGS payment is final and irreversible once completed. In most countries the system is administered and run by central banks. RTGS makes speedy, safe transactions possible, which lowers the number of fraudulent transactions.
Definition Of Real Time Gross Settlement (RTGS)
Real-Time Gross Settlement (RTGS) is a fund transfer method through which money is sent instantly without any delay. RTGS is usually for large value transactions and the minimum amount that can be sent through this mode is Rs 2 lakh.
You can use net banking or mobile banking facility to transfer money through RTGS. To transfer money through this mode you will need the bank details of the person. Transfers can also be scheduled in advance.
The following information is required
for RTGS transactions:
- The amount that should be transferred.
- Name of payee/beneficiary in bank account,
- IFSC code of the recipient/beneficiary.
- Account number of the payee/beneficiary.
- Bank branch and name of the beneficiary bank.
RTGS can be used to send money using net banking. To initiate such a transaction, it is important to collect certain details from the payer such as account number, bank name, IFSC code and name of the account holder. Another interesting feature of this wire transfer method is that the transaction can be scheduled in advance.
RTGS Fund Transfer Process (Stepwise):
The step-by-step process to transfer funds through RTGS is mentioned below:
Step 1: Log in to your internet banking account of your respective bank by entering your username and password.
Step 2: Go to the home page and click on the Fund Transfer option.
Step 3: Proceed to select RTGS, enter beneficiary/payee details like account number, IFSC code etc.
Step 4:Review each detail before submitting. The funds will be immediately credited to the payer’s account.
RTGS Transaction Features and Advantages:
The following list includes the primary features and benefits of RTGS transactions:
- Online Fund Transfer in Real Time
- used for transactions with large value
- secure and safe
- RBI-trusted and supported
- immediate clearance
- One to one is used when depositing money.
- Individually and collectively completed transactions
Features and Benefits of RTGS Transactions:
In the case of online transfers, no charges are levied for RTGS transactions. If the RTGS transaction is completed at a bank branch, a fee of Rs 15 plus GST is charged.
What are the timings for RTGS?
RTGS transactions can be completed on a 24/7 basis, expected between 11:30 p.m. And due to cut-off at 00:30 am.
How does Real-Time Gross Settlement (RTGS) work?
Real time refers to settlement that occurs immediately upon receipt. To put it another way, as soon as the transaction is transmitted from the sending bank, it is credited to the bank that received it. Aggregate settlement refers to the separate handling and settlement of each transaction – multiple transactions are not bundled or combined together. A real-time gross settlement mechanism has been built on it.
Large value bank to bank cash transfers that are managed and arranged by a country’s central bank often use the RTGS system. These transfers often require immediate and thorough approval. Transactions are irreversible once resolved, as already indicated.
Difference between RTGS and NEFT:
Kind
RTGS
NEFT
Settlements
Transactions settled individually
Transactions settled in batches
RTGS Time
processed instantly in real time
Settlement done on hourly basis during bank working hours
Transaction Amount
The minimum limit is Rs 2 lakh. no upper ceiling
There is no minimum or maximum restriction imposed, although there is a limit.
Value
is for high value transactions
Is for low or medium range transactions
Why is Real-Time Gross Settlement (RTGS) important?
RTGS is used by the Central Bank of India to help reduce the risk involved in all high value transactions. Despite financial institutions and banks having very high-security procedures in place to protect their customers’ information, threats will always remain.
That is why the RTGS process has provided great security to customers to conduct secure transactions by getting all their settlements settled instantly.
Details required for RTGS:
The following details are required to conduct transactions through RTGS:
- Name of the beneficiary
- Beneficiary Account Number
- Beneficiary Bank Name
- Name of the branch office of the bank
- The beneficiary account's ISF Code or IFSC
- the amount to be transferred
Banks in India that offer RTGS facility:
There are many banks in India that provide RTGS facility. However, the RTGS transfer process and associated fees and charges vary from bank to bank. It is advisable to check the facility before availing it. Some of the major banks providing RTGS facility are listed below:
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
- Axis Bank
- RBL Bank
How to resolve queries for RTGS transfer?
Every bank has various customer query resolution setup that the respective customers can use to resolve RTGS related issues. Most banks provide a dedicated customer care helpline number, SMS service, chatbot and email resolution services. If you face any problem with RTGS transaction, you can use any of the methods provided by the bank to resolve it. Similarly, you can also consider visiting the nearest branch office of the bank and asking for the same.
Things to keep in mind while making RTGS transfer:
There are a few things you need to keep in mind while making an RTGS transfer:
- You need to add the beneficiary to your account before you can start RTGS payment.
- To do this, beneficiary name, bank account number, account type, bank name and IFSC are required.
- The minimum transferable amount of RTGS is Rs 2 lakh.
- There is no upper limit on the amount that can be remitted through RTGS.
- RTGS service is available round the clock, throughout the year.
- Every RTGS transaction is given a UTR number, a 22-character code that is unique to that transaction and serves as a clear means of identification.
RTGS vs. Bankers' Automated Clearing Services (BACS)
Real-time gross settlement systems are different from net settlement systems such as Bankers Automated Clearing Services (BACS) or BACS Payment Schemes Ltd in the UK. Throughout the day, BACS transactions are collected between institutions. A central bank modifies active money by adjusting the net amount of cash traded at the close of business.
There is no need for physical exchange of money with RTGS. A central bank often makes computerized adjustments to the accounts of the receiving and sending banks.
For example, the balance of recipient institution Bank B will increase by Rs 1 crore while the balance of sender Bank A will decrease by Rs 1 crore.
FAQs on RTGS (Real Time Gross Settlement)
RTGS stands for Real Time Gross Settlement. It’s an electronic funds transfer system in India.
The minimum amount for RTGS transactions is 2 lakh rupees.
There is no upper limit for RTGS transactions.
Yes, RTGS transactions can be done from 7:00 AM to 6:00 PM on working days and from 7:00 AM to 1:00 PM on Saturdays.
Yes, banks may charge a nominal fee for RTGS transactions.
You need the recipient’s bank account number and the IFSC code of their bank branch.
RTGS transfers are completed in real-time, so they are usually instantaneous.
No, RTGS is not available on Sundays and public holidays.
No, RTGS is for domestic transactions within India.
RTGS is for high-value, real-time transactions, while NEFT is for lower-value transactions with set batch processing times.
Visit your bank, fill out an RTGS form, and provide the necessary details.
Yes, the cutoff time for RTGS transactions in the evening is 6:00 PM.
RTGS transfers are irrevocable, meaning they cannot be canceled once initiated.
RTGS is not operational on Sundays, and it follows the holiday calendar of the Reserve Bank of India
RTGS is typically not used for recurring payments; other payment systems like ECS or NACH are more suitable for such transactions.
RTGS ensures real-time, secure, and high-value transactions, making it ideal for large payments.
You can check the status by contacting your bank or checking your account statement.
Yes, many banks offer the option to initiate RTGS transfers through their mobile banking apps.
Contact your bank’s customer support for assistance in resolving any issues with an RTGS transaction.
Yes, India has implemented 24×7 RTGS services for round-the-clock fund transfers.
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