Do you know the meaning of RTGS and how to use it? In this post, we explain everything about RTGS – full form, its timings along with the RTGS limit and how to use this method for fund transfers.
RTGS Full Form & Meaning
The full form of RTGS is Real Time Gross Settlement.
So what is RTGS? It is basically a method of electronically transferring funds from one bank account to another – in real time, i.e. the payment process starts as soon as the transfer request is made. Unlike in an NEFT where it takes at least 30 minutes to credit the amount in the beneficiary’s account, RTGS transfers are instant.
|As per the definition given by RBI:|
‘Real Time’ means the processing of instructions at the time they are received. ‘Gross Settlement’ means that the settlement of funds transfer instructions occurs individually.
Also Read: NEFT vs. RTGS
RTGS can be done online using the netbanking or mobile banking services or by submitting the RTGS application form at the branch.
While there is no capping on the maximum amount that you can transfer using the RTGS mode, there is a minimum limit assigned for RTGS transfers. You can only use RTGS mode if the transfer amount is Rs 2 lakhs – at least. For a lesser amount, you can resort to NEFT or IMPS.
Interesting Read: NEFT vs. RTGS vs. IMPS
Effective from 1st July 2019, RBI has waived off the RTGS processing charges. This means that now the RBI does not charge any processing fee for the transactions done via RTGS.
Also, it must be noted that as per the RBI instructions, banks cannot charge any service fee for inward RTGS transactions (transactions within India).
Below are the RTGS charges for outward transactions:
- Rs 2 lakhs – Rs 5 lakhs: maximum Rs 25/per transaction
- Above Rs 5 lakhs: not exceeding Rs 50/per transaction
Please note that the above charges attract GST as per the applicable GST Rates.
Details Required for RTGS Transaction
The following must be provided by the customer to its bank for processing the RTGS transaction:
- Amount to be remitted
- The account number to be debited
- Name of the beneficiary bank and branch
- The IFSC number of the receiving branch
- Name of the beneficiary customer
- Account number of the beneficiary customer
- Sender to receiver information, if any
- Sender and Beneficiary Legal Entity Identifier (for eligible transactions)
Banks offering RTGS Services
As per the data provided by the Reserve Bank of India, there are currently more than 1,60,000 bank branches that are enabled for RTGS services.
How to Online Transfer Funds via RTGS?
For RTGS online fund transfer, first of all you need to have an active netbanking account linked to your bank account. Once the netbanking services are active in your bank account, you can make RTGS payments online as explained here:
- Login to your netbanking account
- Now, click the option that indicates transfer of funds
- Next, choose RTGS from the list of methods
- Choose your bank account from which transfer is to be made
- Add/select beneficiary’s account
- Type in the transfer amount and description
- Next, provide OTP (if your bank facilitates it) or enter transaction password
- Confirm to complete the RTGS payment via netbanking
Visit the following links to know more about RTGS:
|RTGS Process||SBI RTGS Charges||HDFC RTGS Timings|
|BOB RTGS Charges||HDFC RTGS Limit||ICICI Bank RTGS Timings|
|HDFC RTGS Charges||RTGS Limit||RTGS Timings|
|ICICI Bank RTGS Charges||SBI RTGS Limit||SBI RTGS Timings|
|PNB RTGS Charges|
RTGS full form: Real Time Gross Settlement.
RTGS transactions are regulated and monitored by the Reserve Bank of India.
No. RTGS is a credit-push system which means that transfers can only be initiated using this system.
Yes. You can transfer funds overseas (outwards) using the RTGS method with charges of Rs 25 and Rs 50 for transaction up to Rs 5 lakhs and above it, respectively.
RTGS can be used at any time when using internet banking. However, you must check your bank timings if you wish to make RTGS transfers at the bank.
You can use the RTGS mode for an amount of Rs 2 lakhs or more.
Currently, more than 1.6 lakh bank branches in India offer the RTGS services (as per the RBI data).
Unlike NEFT, RTGS can only be used for amount of Rs 2 lakhs or more. RTGS transactions are done in real time (i.e. instantly) and settled individually. On the contrary, NEFT transactions take at least 30 minutes to be credited in the beneficiary’s account and settlement take place in 48 half-hourly batches in a day.