RTGS: All You Need to Know About Real-Time Gross Settlement

RTGS full form

RTGS stands for Real-Time Gross Settlement

RTGS transfer timings

RTGS transfers can be done 24 hours a day, seven days a week, except from 11:30 PM to 00:30 AM as that is the cut-off period.

RTGS translation limit

The RTGS system is intended for high-value transactions. The minimum amount for transferring funds through the RTGS system is Rs 2 lakh. There is no maximum amount for RTGS transactions.

RTGS processing fees

There are no fees for RTGS transactions when transferred online. A fee of Rs.15-20 plus GST is charged if one does the RTGS transactions at a bank branch.

Banks that support RTGS facility

Several banks in the country provide the RTGS service. The transfer process via RTGS, as well as the associated fees, may differ for different banks.

It is best to double-check this before using the service. The following are some key Indian banks that provide the RTGS service:

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

Details required for RTGS

Some basic requirements must be met before you can begin an effective RTGS transfer. Users must provide the following details to the bank:

• Amount of Remittance
• Account information for the remitting customer to debit the amount
• Beneficiary bank and branch’s name
• The receiving branch’s IFSC code
• Name of the customer who will benefit
• Beneficiary customer’s account number
• Information regarding sender to receiver, if applicable

If the funds are not successfully transferred, the disbursing customer will be notified and the amount would be credited back to their bank account.

If a customer has a problem with the RTGS services, all banks give them the option of contacting the branch manager.

Benefits and features of RTGS

This section throws light on some of the key RTGS features:

Enables online fund transfer in real-time:

‘RT’ in RTGS stands for ‘real-time’ online fund transfer. It implies that this is the most dependable method of fund transfer one wants the transfer to be completed immediately or same day. Simply put, the transactions are performed without any delays or lengthy processing times.

Apt for high ticket value transactions: 

The most important characteristic of the RTGS is that this method of online fund transfer is highly useful for conducting high ticket-value transactions. This method allows you to transfer a minimum of Rs 2 lakhs and is also one of the most reliable and secure options for consumers who must conduct such transactions.

With the RBI’s backing, you’re safe and secure:

This payment method is highly recommended for high-value transactions for a variety of reasons, including quick service and low transaction costs. The characteristic that consumers find most appealing is that it is one of the most secure methods of online fund transfer available today.

This method is highly secure and reliable because it is backed by India’s central bank, the Reserve Bank of India (RBI). This guarantees that it is completely legal and that the server that handles these transactions is strong and resistant even to the most modern hacking technologies.

Instant clearing of funds:

It is a fast settlement method that instantly clears the payout from the user’s end, with the payment reflecting at the beneficiary’s end taking up to an hour or two.

The payment is immediately cleared and irrevocable, indicating that it is fully settled as soon as a user completes the transaction at their end.

Funds get credited to the beneficiary on a gross and individual basis

The funds are credited on a one-to-one basis in RTGS transfer, which means the fund transfer occurs only between two parties involved, namely the user (giver) and the beneficiary.

There is no third party involved, and the payment, once issued by the consumer, is delivered straight to the beneficiary without grouping with any other transaction.

How to do RTGS: process for online fund transfer

Adding a beneficiary

Before you get to transferring funds you first need to add the beneficiary to whom you want to transfer the money. Explained below are the steps for the same:

1. Enter the customer ID and password to log in to your bank’s net banking website.
2. Go to the ‘Funds Transfer’ section.
3. Click on the ‘Add Beneficiary’ button.
4. Enter the beneficiary’s account information, including their bank account number, bank name, bank branch name, and IFSC code.
5. Click on the ‘Add’ button to confirm your action.
6. You may be required to validate the addition by entering your credentials.
7. As soon as the beneficiary is added, you will receive a confirmation message.

Transferring funds

After you have added a beneficiary, you can begin transferring funds by following the steps below:

1. Go to your bank’s internet banking page and select the ‘Funds Transfer’ tab.
2. Enter the account number of the beneficiary.
3. Enter the amount you wish to transfer.
4. Select the check box next to the text that says “I agree to the terms and conditions.”
5. Re-evaluate the information and click on the ‘Confirm’ button to finish the process.

FAQs on Real-Time Gross Settlement

How does RTGS differ from the NEFT?

RTGS is intended for large-value, instantaneous fund transfers. Transactions occurs in real-time and each transaction is settled separately.

NEFT stands for National Electronics Funds Transfer System. It is also an electronic fund transfer system that runs on a Deferred Net Settlement (DNS) basis and settles transactions in batches. DNS settles all transactions received up to the specified cut-off time.

In NEFT, these transfers are netted (payables and receivables), whereas, in RTGS, the transfers are settled individually.

Is the remitting customer be notified of the money being credited to the beneficiary’s account?

The fund disbursing bank receives notification from the RBI that funds have been transferred to the beneficiary’s bank. Based on this, the remitting bank can notify the remitting customer via SMS that funds have been transferred to the beneficiary’s bank.

Will the remitting customer get his money back if the funds are not transferred to the beneficiary’s account?

Yes. Funds received by an RTGS member for credit to a beneficiary customer’s account are returned to the initiating RTGS member within one hour of receipt at the PI of the beneficiary’s bank or before the RTGS business day ends, whichever is earlier, if credit to the beneficiary customer’s account is not possible for any reason, e.g. bank account does not exist, bank account frozen, etc.

In that case, the debit entry made originally in the remitting customer’s account is reversed once the remitting bank receives the money back from the beneficiary’s bank.

In the event of non-credit or a delay in credit of funds to the beneficiary account, who should I contact?

Please contact your bank or branch. If the problem is still not solved, you can contact the RBI’s customer service department at:

The Chief General Manager
Reserve Bank of India
Customer Service Department
1st Floor, Amar Building, Fort
Mumbai – 400 001
Email – cgmcsd@rbi.org.in

On a concluding note

RTGS is an easy-to-use transaction method for high-value transactions. Individuals can easily use this method of payment for high-value transactions because it has no upper limit.

However, if you want the convenience of making payments at any time, RTGS may not be the best option unless you are absolutely certain that all of your payment needs can be met within banking hours.

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