RTGS

RTGS stands for Real Time Gross Settlement. It is a fund transfer method which facilitates sending and receiving money in 'real time' basis without any delay. It is an electronic fund transfer system which allows the money sent by the remitter to reach the beneficiary instantly when the transaction is initiated. The processing of transactions happens on an individual basis and not in a batch-wise system; thus the term 'Gross Settlement' comes into play. RTGS is generally meant for transactions of larger value, typically Rs.2 lakh and above.

The RTGS facility can be used for fund transfers through net banking. It is very important to collect some details from the receiver such as the account number, the name of the account holder, bank name and IFSC code before initiating an RTGS transaction. Another impressive feature of this wire transfer system is that the transactions can be scheduled in advance.

Information Required for an RTGS Transaction:

• The amount that has to be transferred (in INR)
• Name of the receiver/payee/beneficiary as registered with the bank account
• Account number of the receiver
• Name of beneficiary bank and its branch
• IFSC code of the receiving branch

The RTGS is a payment system that is maintained by the Reserve Bank of India. Hence, it is an extremely safe and reliable method of fund transfer. Incidentally, RTGS is one of the quickest ways to transfer money, much faster than the NEFT transactions. Even the charges of RTGS are quite reasonable.

A Step-by-step Guideline for RTGS Fund Transfer:

• Log in to your bank's internet banking account using your username and password.
• Go to the home page.
• Click on the 'Funds Transfer' option.
• Choose RTGS
• Enter the required details (account number, IFSC code, etc.)
• Review all details and submit.
• The amount will be immediately credited to the payee account.

Features of RTGS Transaction:

You should be aware of the different features of an RTGS transaction before initiating one. These are its main features:

• Real-time online fund transfer
• Used primarily for high-value transactions, above Rs. 2 lakh
• Safe and secure and reliable as RBI backs it
• Immediate clearance
• Funds are credited on a one-on-one basis
• Transactions are executed on an individual & gross basis
• Senders are charged with a nominal fee
• The recipient need not pay any charges.

Standard RTGS Charges

• Rs. 30 is charged per transaction for a transaction of Rs. 2 lakh to 5 lakh.
• Rs. 55 is charged per transaction for a transaction of above Rs. 5 lakh.

RTGS Timings:

Weekdays - 9.00 a.m. to 4.30 p.m.

Saturdays - 9.00 a.m. to 2.00 p.m.

Difference Between NEFT and RTGS

Criteria	NEFT	RTGS
Timings	Settled on an hourly basis (during bank working hours)	Processed immediately (in real-time)
Transaction Amount	No minimum limit. Maximum limit of Rs.50,000/-	Minimum limit of Rs.2 lakh. No maximum limit.
Settlements	In batches	Individually
Value	For lower or medium value transactions	For higher value transactions

NEFT | RTGS | IMPS : The Difference

There are three methods of fund transfer in India, namely, NEFT (National Electronic Fund Transfer), RTGS and IMPS (Immediate Payment Service). All three inherently let you transfer funds from one account to another. However, the methods are slightly different from one another.

NEFT and RTGS are regulated as well as managed by the RBI. IMPS, on the other hand, is the brainchild of the NPCI (National Payments Corporation of India).

NEFT is primarily used for lower value fund transactions that are not settled immediately. Such services are not available on bank holidays. The transactions are settled in eleven batches on weekdays and six batches on Sundays. NEFT transactions do not have a minimum limit but one can use this facility to transfer up to Rs.50,000. IMPS transaction facility can be availed on a 24/7 basis, even on bank holidays, unlike NEFT and RTGS. This facility can be used for transferring up to Rs.2 lakh.

On the other hand, RTGS transactions are settled on a real-time basis. There is no specified maximum limit, but a minimum limit is capped at Rs. 2 lakh. Banks usually have the discretion to set their own upper limit for RTGS as the RBI hasn't set any ceiling cap.

FAQs

What is the difference between NEFT and RTGS?

NEFT transactions are settled in batches; RTGS transactions are settled individually and immediately.

What are the minimum and maximum limit for RTGS?

RTGS transactions are essentially for larger value transactions. The minimum amount is capped at Rs.2 lakh, and there is no maximum limit.

How long does it take to get funds credited under RTGS?

The funds are generally credited instantly maybe with a 30-minute delay at times.

Will the sender get a confirmation message or acknowledgment when the money is credited to the beneficiary account?

Yes, ideally a confirmation SMS will be sent to the sender.

If funds are not credited due to an error, will the money be sent back to the remitter?

Yes, in such a case, the money will be automatically credited to the remitter's account within 24 hours. If this does not happen, customers must contact the bank for further assistance.

Do all banks in India have the RTGS facility?

No, the facility is available only at RTGS-enabled banks.

What does inter-bank fund transfer mean?

Inter-bank fund transfer refers to the transfer of money from the account in one bank (Bank ABC) to another bank (Bank XYZ).

Can RTGS transaction be scheduled in advance?

Yes.

How many days in advance can an RTGS transaction be scheduled?

It can be scheduled three working days in advance.

Can RTGS be used to send funds to foreign banks?

No, this facility is exclusively for Indian banks that are RTGS-enabled.

How do I know if a bank is RTGS-enabled?

The RBI website has a comprehensive list of all the banks that are RTGS-enabled.

Do RTGS transfers work on bank holidays and Sundays?

No.