What to do If RTGS Transactions Fail?

No charge is levied for carrying out inward transactions under RTGS. On the other hand, for outward transactions between Rs.2 lakhs to Rs.5 lakhs, you need to pay a fee of Rs.30 per transaction. For initiating an outward transaction of more than Rs.5 lakhs, the bank will charge a processing fee of Rs.55 per transaction.

Common Reasons for RTGS Transaction Failures

RTGS transactions may occasionally fail due to several factors. Understanding these can help you avoid errors and ensure smoother fund transfers:

1. Incorrect Beneficiary Details: A mismatch in the account number or IFSC code can cause a transaction to be rejected.
2. Insufficient Funds: If your account doesn't have enough balance at the time of the transaction, it may not go through.
3. Bank Server Issues: Technical downtime or connectivity issues at the bank can delay or fail a transaction.
4. Exceeded Transaction Time Window: RTGS transactions are time-bound. Requests made outside banking hours may not be processed until the next working day.
5. Frozen or Dormant Account: Transactions to or from accounts with restrictions or that are inactive may be blocked.

Steps to Take Immediately After an RTGS Failure

If your RTGS transaction fails, follow these immediate steps:

• Check Account Balance: Ensure the amount hasn’t been permanently debited.
• Verify Transaction Details: Double-check the beneficiary’s account number and IFSC code.
• Contact Customer Support: Reach out to your bank’s helpline or visit your branch to report the issue.
• Track the Refund Timeline: In most cases, the amount is automatically credited back within a few hours or up to 24 hours.
• Keep the Transaction Reference Number: This helps the bank trace and resolve the issue faster.

How to Check the Status of an RTGS Transaction

Knowing how to track your RTGS transaction can help you take timely action:

1. Internet Banking or Mobile App: Navigate to the 'Transaction History' or 'Fund Transfers' section to view status.
2. SMS or Email Alerts: Banks usually send real-time transaction updates.
3. Bank Branch Visit: You can inquire in person using the transaction reference number.
4. Call Customer Support: Most banks offer 24/7 helplines where you can request transaction status updates.

Timeframe for Refunds After RTGS Failure

When an RTGS transaction fails, banks are mandated by RBI guidelines to process the refund promptly:

1. Standard Timeframe: Funds are usually credited back within 2 hours of failure.
2. Maximum Refund Period: In rare cases, it may take up to 24 working hours.
3. Escalation Option: If the refund isn’t processed within the expected time, you can lodge a complaint with the bank or escalate to RBI’s grievance redressal platform.

How to Transfer Funds Without RTGS?

If the RTGS system fails to work, bank customers can also take the help of National Electronic Fund Transfer (RTGS) facility to send money during this period. Both NEFT and RTGS are digital payment modes provided by the bank for transferring money. However, there are few differences between RTGS and NEFT. RTGS mainly deals with the large sum of money. For instance, people can send funds above Rs.2 lakh through RTGS but there is no such limit for NEFT.

RTGS Timings

The RBI has updated the bank's online RTGS timings in an effort to provide digital payment systems the much-needed boost they need. According to the circular that was published in December 2020, the new RTGS timings make it accessible every day of the week, 24 hours a day. Prior to this, RTGS batch timings were limited to bank business days from 7 AM to 6 PM.

RTGS Settlement Time

RTGS transaction can be done on a real time basis. Thus, the time taken to complete a transaction usually takes a few minutes. The RBI has made it compulsory for banks to closely abide by the RTGS clearing time in order to ensure that there are no delays in the amount being credited to the beneficiary account.

All RTGS transactions must be completed no later than 30 minutes following the receipt of a transfer request. Additionally, a confirmation SMS stating that the money has been charged and will soon be credited is sent out.

How to Ensure That the Bank Clears Your RTGS Transaction on Time?

Even if using RTGS as a method of fund transfer is simple and hassle-free, there are a few considerations to make in order to reduce the amount of time required for RTGS payments.

1. Check if your and the beneficiary's banks are RTGS enabled.
2. You need to have an active net banking account to perform online transactions.
3. Take not of the bank's cut off time because it can impact the RTGS credit time.
4. To speed up processing, make sure you provide accurate information for both the debit account and the RTGS beneficiary account.

What to do if the RTGS Transaction is not Cleared Past the Specified Time Period?

Even if the transaction is started within the designated bank timings, it may occasionally fail to process and end up being terminated. This could happen for a number of reasons, including inaccurate beneficiary account information, a locked account, an incorrectly typed IFSC code, etc. If an RTGS transaction debits money from your account, that money will be returned to you within an hour or before the RTGS closure time, whichever comes first.

In case you fail to receive the money withing stipulated time, you should get in touch with the Reserve Bank of India's customer service department. The following are the two different ways to do so:

1. Send a letter to the address given below stating your concern:The Chief General Manager
   Reserve Bank of India
   Customer Service Department,
   1st Floor, Amar Building,
   Fort, Mumbai, Maharashtra 400 001
2. Write an email and send it to cgmcsd@rbi.org.in.