What is RTGS, and How Does it Work?

Do you know what is RTGS and why it is essential to know about it? Nowadays, we can do all the things in Banking while sitting at home. Now gone are the days when we had to stand in a long line by going to the Bank and had to wait a lot of time to transfer our Challan or simple money. You can still do this, but why waste your precious time when we can do all these things from home.

There are many modern banking solutions available today, such as Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), and Immediate Payment Service (IMPS), which make these payment process very easy. With such services, we can do our transactions quickly, easily, and safely.

So the banking solution we will know about today is RTGS (Real Time Gross Settlement System) It is a prevalent electronic fund transfer method in India. Under this, money is sent in real-time and on an individual basis. With the help of RTGS, you can send more money from one bank account to another bank account simultaneously. Today, you people will get complete information about what RTGS is on this article and how we can use it, then without delay, let’s start and know what is RTGS.

What is RTGS

The Full Form of RTGS is Real Time Gross Settlement. This is a continuous, real-time process of fund settlement where funds are sent from one account to another without netting on an individual and order-by-order basis. If I say in natural language, it is such an online banking method where the money is sent from one bank to another without any waiting period.

What is RTGS

According to the Reserve Bank of India (RBI), this term refers to ‘Real Time‘ that it is processing all the instructions simultaneously as they are receiving and not in the later time of processing. Is left for. And the second term ‘Gross Settlement’ means that the Settlement of funds transfer instructions is individual (on the instruction-by-instruction basis).

Since RBI maintains this system, all Settlement of funds are recorded in their books or records, so RTGS payments are final and irrevocable, which means that it cannot be done again. Therefore RTGS is one of the fastest means to transfer money through secure banking channels. Through RTGS, you can Transfer up to a Minimum of Rs 2,00,000, and there is no maximum limit; you can transfer as many funds as you like till your Bank Branch decides the limit for you. So this shows that the use of RTGS is suitable for the business of big money.

Apart from this, which is a significant advantage as compared to other fund transfer methods, it eliminates the settlement risks of all these interbank transfers, and it is very secure as RBI operates it.

How to RTGS

This question comes in people’s mind that how can they transfer money with the help of RTGS. So the simple answer to this is that we can do this in two ways: the online method and the other offline. So I am going to inform you about these two methods.

Online Method for RTGS

For Online Method, you can RTGS using Internet Banking. Under this, if the person to whom you want to transfer funds, you have to add it to your account as Payee or Beneficiary Customer, where you have to provide all the information about that customer and then check the details of the Bank, that Beneficiary. Does. For this work, it takes about 12-24 hours for the Bank to verify the Beneficiary Detail.

When the Bank entirely completes the checking process, then the Beneficiary Customer is activated by the Bank, after which you can transfer funds to that Beneficiary Customer.

To add any person as Beneficiary or Payee in your Bank Account, you need to have the following information related to Beneficiary Customer. Otherwise, you cannot add it as Beneficiary by your Internet Banking A / c.

  • Name of Bank and Bank Branch
  • Name and Account Number
  • IFSC Code of their Bank (Indian Financial System Code)

Offline Method for RTGS

  • If you do not know how to apply online, then you can use it offline, but for this, you have to go to Physically Bank Branch and fill a slip in the same way as you usually do while making check deposit or NEFT. Let’s fill.
  • As soon as you fill and deposit the Instruction Slip, the Sending Bank feeds the information supplied in that Instruction Slip into its Central Processing System.
  • The information is sent to RBI as soon as it feeds on the Central Processing System.
  • After this, RBI completes the entire transaction by processing and debits the Amount (money) from the sending bank account and credits that Amount in the report of the Bank to which RTGS has been done.
  • After this entire process, a Unique Transaction Number (UTN) is generated, which the RBI lends to the Bank sending the Amount. Sender Bank receiving this UTN means that your fund has just been transferred.
  • As soon as the Bank sending Amount is received, the UTN, similarly, that Bank gives its information to the Bank receiving the Amount and then the Receiver Bank credits that Amount in the account holder to whom the Amount has been sent.
  • This process takes about 30 minutes to complete the air, during which your RTGS Transaction is completed, and credit is given to the Fund Beneficiary Account.

Features of RTGS Transaction:

Here I am going to tell you about some features related to RTGS transaction, about which you are critical to know about them:

  1. In this Realtime online fund transfer is done.
  2. It is mainly used for high-value transactions.
  3. It is very safe and secure
  4. It is very reliable because RBI is behind it.
  5. Immediate clearing occurs in it
  6. With this, funds are credited on a one-on-one basis.
  7. In this, Transactions are executed on an individual and gross basis.

What are the fees of RTGS Transactions

In this process, the recipient bank (the Bank to whom the money is sent) does not face any charge for the RTGS transaction. But the sender (who sends the money), the Bank charges some fees for the transfer of funds, which is as follows:

AmountRTGS Fee
Rs.2 lakh to Rs.5 lakh toRs.30 per transaction
Above Rs.5 lakh up toRs.55 per transaction

Timings to RTGS

Weekdays9.00 a.m. From 4.30 p.m.
Saturdays9.00 a.m. From 2.00 p.m
RTGS & NEFT timing

For whom is RTGS required?

If a person is doing significant daily transactions, then they mainly need RTGS. If seen, these are used more by the traders because they have to do many times of high-value transactions related to their business, and such high-value transactions can be done only through RTGS. But it is not limited to them alone, but ordinary investors or individuals can use RTGS.

If ever a person has to transfer funds from one account to another account or another person’s account for INR 2,00,000 or more, then he will have to use RTGS for fund transfer. You can also use RTGS to invest in Mutual Fund.

What is the main difference between RTGS and NEFT

Criteria NEFT RTGS
SettlementsTransactions are arranged in batchesHere, the transactions are arranged individually.
RTGS TimingsHere Settlement is done on an hourly basis during bank working hours.But here all the process is dealt with on Real-Time
Transaction AmountThere is no minimum limit, but there is a maximum limitThere is a minimum limit of Rs.2 lakh while there is no upper ceiling.
ValueThey are mainly used for lower and medium-range transactions.At the same time, they are used for high-value transactions.

FAQs related to RTGS (Real Time Gross Settlement)

1. What is the difference between RTGS and NEFT?
An NEFT or National Electronic Fund Transfer, transactions are arranged in batches, but RTGS transactions are settled individually.

2. What are the minimum and maximum limits of RTGS transactions?
Always remember that all RTGS transactions are mainly used for large value transactions. At the same time, their minimum amount of RTGS transactions is Rs.2 lakh. And there is no maximum limit.

3. How long does it take to transfer funds and credit in RTGS?
Often funds become instant credit. The Bank applies a 30-minute time frame to credit money.

4. Does the recipient of the money get any confirmation message or acknowledgment once they send the money?
Yes, they receive a confirmation SMS receiver once they receive the money.

5. If the account of a person sent to prison is unable to be credited, does the transaction go reverse?
Yes. If any money cannot be transferred, then the transaction automatically goes reverse, in which case the funds sent to the sender gets once again. If it does not happen in 24 hours or hours, you should contact your nearest bank branch.

6. Is the RTGS facility available in all banks in India?
No. RTGS services are available in only a few RTGS-enabled banks in India.

7. What is Interbank fund transfer?
When funds have to send money from one bank account to another bank account, it is called Interbank fund transfer. The money is sent from one Bank to another.

8. Can an RTGS transaction be scheduled in advance?

9. How many days before we can schedule this transaction?
We can do this transaction three working days in advance.

10. Can we use RTGS to send it to foreign banks?
No. This service is available only in India and that too with only RTGS-enabled banks.

11. How to find out if our Bank is RTGS-enabled or not?
For this, you will have to visit the RBI website, where you will get the entire comprehensive list of the Bank where the RTGS-enabled ones are.

12. Can RTGS transfers be done at bank holidays and Sundays?
No. These services are available only during working days, during the working hours of the Bank.

I sincerely hope that I have told you what RTGS is? Gave full information about, and I hope you guys have understood about RTGS. I request all of you readers that you, too, share this information in your neighborhood, relatives, and friends, so that our awareness will be there, and it will benefit everyone. I need your support so that I can convey more new information to you.

It has always been my endeavor that I always help my readers or readers from all sides, if you people have any doubt of any kind, then you can ask me irresponsibly. I will try to solve those Doubts. What do you think this article is about RTGS? Tell us how you felt by writing a comment so that we have a chance to learn from your ideas and improve something.

Leave a Comment