RTGS Full Form

RTGS stands for Real Time Gross Settlement. It is a fund transfer method where money is transferred from one bank to another in real-time, ensuring immediate settlement. This system is used for high-value transactions (minimum Rs. 2 lakh), providing fast and secure transfers without any waiting period. It is commonly used by businesses and individuals for quick fund transfers that need to be processed instantly.

RTGS Full Form

Table of Contents:

• ⇾ Understand RTGS Transactions
• ⇾ Ways to do RTGS Transfers
• ⇾ RTGS Charges
• ⇾ RTGS Transaction Time
• ⇾ RTGS Limit Per Day
• ⇾ RTGS Features & Benefits
• ⇾ Details Required for RTGS Funds Transfer
• ⇾ RTGS Money Transfer
• ⇾ Online RTGS Fund Transfer
• ⇾ RTGS Fund Transfer by Bank Branch Visit
• ⇾ NEFT vs RTGS
• ⇾ Frequently Asked Questions

Understanding RTGS Transactions

RTGS (Real-Time Gross Settlement) enables quick, real-time money transfers between banks for high-value transactions. The process follows these steps:

• Initiation: The sender starts the transfer by providing the beneficiary’s bank details (account number, IFSC code) and the amount to be transferred.
• Verification: The bank checks if the sender has sufficient funds to cover the transfer amount.
• Role of Central Bank: The central bank, acting as an intermediary, is notified and verifies the transaction.
• Transfer in Real-Time: The central bank transfers the amount from the sender’s account to the recipient’s bank account in real time, usually within a few seconds.
• Beneficiary Bank Update: The central bank sends a notification to the beneficiary's bank confirming the transfer.
• Completion: The beneficiary receives the funds, and both parties are notified about the transaction completion.

Ways to do RTGS Transfers

There are multiple methods available for initiating an RTGS transfer. Each method offers convenience based on the user’s preference and access to technology.

• Mobile Banking Apps: You can quickly initiate an RTGS transfer using your bank’s mobile app. It allows you to transfer funds anytime, anywhere, using your smartphone. These apps are user-friendly and provide the fastest way to complete RTGS transactions on the go.
• Internet Banking: Log in to your bank’s internet banking portal to initiate an RTGS transfer. After adding the beneficiary’s details, select the RTGS option, enter the transfer amount, and proceed with the transaction.
• Bank Branch: If you prefer in-person transactions, you can visit your bank branch to initiate RTGS transfers. Fill out the necessary forms with the help of the bank staff, and they will process the transfer on your behalf.

RTGS Charges

It is completely free to receive payments through RTGS. Whereas, only sending money through RTGS may be charged based on the bank’s decision. Here’s the breakdown of RTGS charges for RTGS bank transfers based on the Reserve Bank of India (RBI) guidelines:

Important Notes:

• These are the maximum limits set by the RBI. Some banks may charge lower fees.
• Always check your bank's specific RTGS charges before initiating a transfer through their website or mobile app​

RTGS Transaction Time

Here’s a table showing the RTGS 24/7 availability along with the maintenance windows for different banks:

RTGS Limit Per Day

Here’s the table summarizing RTGS transaction limits in India:

RTGS Features & Benefits

RTGS (Real-Time Gross Settlement) offers numerous advantages for individuals and businesses looking to transfer large sums of money securely and efficiently. Below are the key features and benefits of RTGS:

• Speed and Efficiency: RTGS allows for the immediate transfer of funds, making it ideal for urgent or time-sensitive transactions. This helps improve economic efficiency by ensuring quick circulation of money.
• Lowered Risk of Fraud: Once processed, RTGS transactions are final and cannot be altered, reducing the risk of fraud and providing users with greater confidence in the payment system.
• Reduced Settlement Risk: Since transactions are settled in real-time, RTGS reduces the risk of payment defaults, unlike systems that settle transactions with a delay.
• Improved Liquidity Management: With real-time settlement, banks have a clear view of their cash position, enabling better liquidity management and optimal use of available funds.
• Improved Security: RTGS employs strong security measures, protecting transactions from fraud and cyber threats, making it one of the most secure payment methods.
• High-Value Transactions: RTGS is particularly suited for large-value transfers, ensuring quick, reliable settlement, which is critical for commercial and interbank transactions.

Details Required for RTGS Funds Transfer

For an RTGS transfer, whether by mobile app or by filling out an RTGS application form in a bank branch, you need to provide the following information:

• Amount to be Remitted: The exact transfer amount, adhering to RTGS limits.
• Remitting Account Details: Your account number from which the funds will be debited.
• Beneficiary Details: Name, account number, bank name, and IFSC code of the recipient.
• Optional Details:
• Reference note for the recipient (if applicable).
• Legal Entity Identifier (LEI) for eligible high-value transactions

Quick Tip: It is a good practice to keep your PAN card handy.

RTGS Money Transfer

RTGS transfers can be done both online and offline. Here’s how:

Online RTGS Fund Transfer

To transfer funds via RTGS online, follow these steps:

1. Log in to your bank’s internet banking portal or mobile app.
2. Navigate to the 'Funds Transfer' section.
3. Select ‘RTGS’ as the transfer method.
4. Add beneficiary details including account number and IFSC code.
5. Enter the amount and confirm the transfer with the OTP provided by your bank.

RTGS Fund Transfer by Bank Branch Visit

For offline RTGS transactions:

1. Visit the bank branch.
2. Request and fill out the RTGS form with beneficiary and transfer details.
3. Submit the form at the counter.
4. The bank will process the transaction, and a receipt will be provided for confirmation

NEFT vs RTGS

While NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) are both electronic payment methods, they differ significantly in how they process transactions, limits, and charges. Below is a comparison table: