Quick Read
- RTGS stands for Real-Time Gross Settlement.
- It is a banking system developed by the Reserve Bank of India for transferring funds from one account to another in real-time and on a gross basis.
- RTGS online transfers are available 24x7x365, including holidays.
- The minimum amount for an RTGS transfer is ₹2 lakh, with no maximum limit.
- RTGS branch transfer timings depend on the working hours of the bank, while online RTGS timings are available 24×7.
RTGS stands for Real-Time Gross Settlement. It is a fund transfer system that is authorised by the Reserve Bank of India, through which banks transfer funds from one account to another in real-time and on a gross basis. In other words, RTGS allows one-to-one transaction settlement on a real-time basis. Unlike NEFT (National Electronic Funds Transfer), which operates on a deferred net settlement mode, RTGS transfers take place individually for each transaction instruction.
What is RTGS Transfer and How Does It Work?
RTGS (Real Time Gross Settlement) is a fund transfer mechanism used to transfer large sums of money from one bank to another almost instantaneously rather than in a batch. Every transfer is performed on a real-time, one-on-one basis rather than on a large number of transactions bundled together. It works on a ‘gross settlement’ system-this means that the transfer payment is completed and paid on a deferred settlement basis, versus the value being netted out with other payments, so that it cannot be reversed once completed.
What Are the Steps for Online RTGS Transfer?
Below are the steps to follow while doing an RTGS Transfer:
- Step 1: Log on to the bank portal or mobile application and add the beneficiary by entering the beneficiary’s account number, IFSC code, and name. It usually takes a few hours for the beneficiary to appear in the beneficiaries list.
- Step 2: Choose RTGS as the mode of transfer for amounts more than ₹2Lakh.
- Step 3: Initiate the RTGS transaction by entering the amount to be transferred and rechecking the beneficiary’s details. Authorise the transaction by entering OTP/PIN/livemode or any other authentication mode decided by the bank.
- Step 4: Keep track of the transaction by noting down or saving the transaction reference number.
What Are the Steps for Branch RTGS Transfer?
Below are the steps to follow while doing an RTGS transfer from a branch:
- Step 1: Visit the bank’s branch to initiate an RTGS transfer. The branch-based RTGS transfer should be initiated well within the timings as scheduled by the particular bank.
- Step 2: Fill out the RTGS transfer form with the required information.
- Step 3: The bank would verify the submitted documents before processing the request. To initiate the transfer process, timely submission of the forms is required.
What Are The Differences Between RTGS Vs NEFT Vs IMPS Worth Knowing?
RTGS, NEFT, and IMPS are the three different electronic fund transfer systems in India, which are overseen by the Reserve Bank of India. Understanding the difference between these three modes helps in deciding which one is appropriate for which transaction.
RTGS transfers are suitable for large-value transactions, which require a faster mode of fund transfer. NEFT works on a Deferred Net Settlement (DNS) basis wherein the transactions are settled periodically throughout the day. IMPS, on the other hand, offers an instant inter-bank money transfer facility through mobile phones and other digital mediums. NEFT usually takes 2 hours, whereas IMPS transactions are usually instant, and RTGS transactions are completed within 30 mins of initiation.
Why Are RTGS Transactions Getting Delayed?
There are several reasons for RTGS transaction delays or failures, such as:
- Wrong Beneficiary Details: If the beneficiary’s account number or IFSC code is incorrect, the transaction will not take place.
- Bank Downtime: If the transaction is initiated when the bank’s system is down, it will lead to delays or failure of the transaction.
- Limit Restrictions: In case the transaction amount is beyond the permissible limit, the transaction would be halted or put on hold.
- Connectivity Issues: Sometimes there could be network or connectivity issues between the two banks, which could cause RTGS transaction delays.
Conclusion
RTGS, therefore, becomes the most secure option that comes to mind when one wishes to transfer money quickly and safely. If you plan on buying a property, doing a business transaction, or for any transaction that is more than or equal to 2 lakh. Also, RTGS operates 24/7, all 365 days. Branch RTGS will only work during branch hours.
Funds are transferred in approximately 30 minutes; the RTGS online fund transfer has no charges associated with it, either.
Make sure, while picking a method, that the payment system suits the amount and also the urgency. So when 2 lakh is the minimum amount and the funds have to be there as soon as possible, that’s the purpose RTGS was designed for.
FAQs
1. Can I do an RTGS transfer on a Sunday?
RTGS transfers can be initiated on Sundays through online net-banking, as they are available 24x7x365. However, the branch-based RTGS transfers cannot be initiated on Sundays, as the branch would remain closed on Sundays.
2. What is the minimum amount for RTGS?
The minimum amount for RTGS, as per the Reserve Bank of India, is ₹2 Lakh. This implies that any amount less than ₹2 Lakh cannot be transferred through RTGS.
3. Is there any RTGS service charge in India?
There is no service charge applicable on online RTGS transfers as decided by RBI. However, branch-based RTGS levies certain service charges, which differ from bank to bank.
4. How long does it take for money to be transferred through RTGS?
Most RTGS transfers are settled within 30 minutes of initiation. However, in some cases, the transfer could be delayed due to various reasons, such as bank maintenance, wrong beneficiary details, and so on. In such cases, the amount is usually credited back to the sender’s account within a couple of hours of initiation.
