RTGS-Real Time Gross Settlement

What Is Real-Time Gross Settlement (RTGS)

Real-Time Gross Settlement (RTGS) is a fund transfer method via which money is sent immediately without any delays. RTGS is typically meant for larger value transactions and the minimum amount that can be sent via this mode is Rs.2 lakh.

You can use the net banking or mobile banking facility to transfer money via RTGS. You need the bank details of the individual to transfer money via this mode. Transfers can be scheduled in advance as well.

The following information is required for an RTGS transaction:

  • The amount that needs to be transferred.
  • Name of the payee/beneficiary as in the bank account,
  • IFSC code of the payee/beneficiary.
  • Account number of the payee/beneficiary.
  • Name of beneficiary bank and bank branch.

Money can be sent using RTGS through net banking. To initiate such a transaction, it is important to collect some details from the payee such as account number, bank name, IFSC code, and account holder name. Another interesting feature about this wire transfer method is that transactions can be scheduled in advance.

The following information is required for an RTGS transaction:

  • The amount thats needs to be transferred in rupees
  • Name of the payee/beneficiary as in the bank account
  • IFSC code of the payee/beneficiary
  • Account number of the payee/beneficiary
  • Name of beneficiary bank and bank branch

RTGS Fund Transfer Process(Stepwise)

The step-by-step procedure to transfer funds via RTGS is mentioned below:

Step 1:Log in to your respective bank’s internet banking account by entering your username and password.

Step 2:Go to the home page and click on the Funds Transfer option.

Step 3:Proceed to choose RTGS, key in beneficiary/payee details such as account number, IFSC code, etc.

Step 4:Review all details and then submit. The funds will be credited immediately to the payee’s account.

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Features and Benefits of RTGS Transactions

The main features and benefits of RTGS transactions are mentioned below:

  • Realtime online fund transfer
  • Used for high value transactions
  • Safe and secure
  • Reliable and backed by the RBI
  • Immediate clearing
  • Funds credited on a one-on-one basis
  • Transactions executed on an individual and gross basis

Fees and Charges for RTGS Transactions

In case of online transfers, no charges are levied for RTGS transactions. In case the RTGS transaction is completed at a bank branch, a charge of Rs.15 plus GST is levied.

What are the Timings for RTGS?

RTGS transactions can be completed on a 24/7 basis, expect between 11:30 p.m. and 00:30 a.m. due to cut-off.

Difference between RTGS and NEFT

Criteria NEFT RTGS
Settlements Transactions settled in batches Transactions settled individually
RTGS Timings Settled on an hourly basis during bank working hours Processed immediately in real-time
Transaction Amount No minimum limit but has a maximum limit Minimum limit is Rs.2 lakh. No upper ceiling
Value Meant for lower or medium range transactions Meant for higher value transactions

Why Real-Time Gross Settlement (RTGS) is Important?

RTGS is used by the Central Bank of India to help in minimising the risk that is involved in all transactions that are of high-value. In spite of financial institutions and banks having very high security processes in place for protecting its customer’s information, threats will always be there.

This is why the RTGS process has offered a lot of security to the customers for making secure transactions by clearing all their settlements immediately.

Details required for RTGS

The following details are required to make a transaction through RTGS:

  • Name of the beneficiary
  • Account number of the beneficiary
  • Name of the beneficiary’s bank
  • Name of the branch office of the bank
  • ISF Code or IFSC of the beneficiary account
  • The amount which has to be transferred

Banks in India that offer RTGS facility

There are a number of banks in India that offer the RTGS facility. However, the RTGS transfer process and the relevant fees and charges are subject to vary from bank to bank. It is advisable to check the same before availing the facility. Some of the major banks that offer the RTGS facility are listed below:

  • Axis Bank
  • State Bank of India (SBI)
  • HDFC Bank
  • ICICI Bank
  • RBL Bank

How to resolve queries for RTGS Transfer

Each bank has a set of customer query resolution setup that can be used by the respective customers for resolving the issues in regard to RTGS. Most banks offer a dedicated customer care helpline number, SMS service, chatbots, and email resolution services. In case you face an issue with an RTGS transaction, you can use of the methods to get it resolved by the bank. Similarly, you can also consider visiting the nearest branch office of the bank and place a query for the same.

FAQ's for RTGS (Real Time Gross Settlement)

  1. What is the difference between RTGS and NEFT?

    Ans: NEFT or National Electronic Fund Transfer transactions are settled in batches, while RTGS transactions are settled individually.

  2. What is the minimum and maximum limit for RTGS transactions?

    Ans: Remember that all RTGS transactions are mainly for larger value transactions. The minimum amount for RTGS transactions is Rs.2 lakh. There is no maximum limit.

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

    Ans: Generally, the funds are credited instantly. The bank will ideally credit the money within a 30 minute time frame.

  4. Will the sender/remitter receive any confirmation message or acknowledgement once the money is credited to the beneficiary/payee account?

    Ans: A confirmation SMS will ideally be sent to the remitter.

  5. In case funds are not credited to the payee/beneficiary account due to an error, will the remitter get back the money?

    Ans: Yes. In such a case, the funds will be automatically credited to the remitter’s account. If this does not happen within a 24-hour time window, then contact your bank’s customer care representative.

  6. Do all banks in India have RTGS facility?

    Ans: No. RTGS services can be availed only at RTGS-enabled banks.

  7. What is inter bank fund transfer?

    Ans: When funds are transferred from one bank account to another bank account. Basically, it is sending money to other bank accounts.

  8. Is it possible to schedule an RTGS transaction in advance?

    Ans: Yes, you can schedule RTGS transactions in advance.

  9. How much in advance can I schedule an RTGS transaction?

    Ans: RTGS transactions can be scheduled 3 working days in advance.

  10. Can I use RTGS to send money to foreign banks?

    Ans: No. The service is only available in India with RTGS-enabled banks.

  11. How do I know if my bank is RTGS-enabled?

    Ans: To know if your bank has RTGS facility or not, visit the RBI website to get access to a comprehensive list of all banks that are RTGS-enabled.

  12. Can RTGS transfers be made on bank holidays and Sundays?

    Ans: Yes, RTGS transactions can be done on a 24/7 basis, except between 11:30 p.m. and 00:30 a.m. due to cut-off.

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News About RTGS - Real Time Gross Settlement

  • RBI allows round the clock transfer of funds through RTGS

    The Reserve Bank of India (RBI) in a bid to give a push to digital payments has allowed the transfer of funds through Real-Time Gross Settlement (RTGS) round-the-clock from today. The facility will be available for customer and inter-bank transactions 24x7 except for the interval between ‘end-of-day’ and ‘start-of-day’ processes. The timings of those processes will be broadcasted through the RTGS system. It must be noted here that RTGS will continue to be governed by the RTGS System Regulations, 2013.

    The facility of Intra-Day Liquidity (IDL) has also been made available to facilitate smooth operations. If the facility is availed, it shall be reversed before the beginning of the ‘end-of-day’ process.

    Following the announcement, the central bank has also issued a directive to all members advising them to disseminate information on the extended availability of RTGS to all their customers. The directive has been issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

    14 December 2020

  • Banks to Accept RTGS Till 12 a.m. on March 31

    RTGS timings will be extended on March 31 in an effort to provide customers an additional window of time to file tax returns. In fact, the Reserve Bank of India (RBI) has asked all banks that may be accepting government payments or deal with government transactions to remain open for more hours on Saturday to facilitate this process.

    Real Time Gross Settlement (RTGS) is generally used for high-value transactions and the minimum limit for RTGS is usually Rs.2 lakh. These fund transfers happen on a real-time basis and the money is credited immediately to the beneficiary account as and when the payee initiates the transaction.

    The Reserve Bank of India (RBI) has issued a notice asking banks accepting government payments to work till 8.00 p.m on March 31, 2018. RBI has also issued instructions to banks to make all required arrangements to provide electronic fund transfer facilities for extended hours on the day.

    There might be a slight increase in the volume of transactions because there are two bank holidays that come before Saturday (March 31). The holidays happen to fall on March 29 and March 30 for Mahaveer Jayanti and Good Friday.

    29 March 2018

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