RTGS

Real Time Gross Settlement :

Meaning :
RTGS or Real Time Gross Settlement is an electronic
method to transfer money from one bank to another bank on a real –
time or gross basis within the country . The term ‘Real Time’ means that
the payment is made instantly without any delay and may take around 30
minutes from receiving the request for remittance of funds. The gross
settlement means the money is transferred on one to one basis.

Features & Benefits of RTGS :

RTGS system is maintained by the Reserve Bank of India
and provides the following features and benefits for fund transfer to the
customers :

 RTGS Minimum Amount :

 RTGA Payments :
 Instant Transfer :
 Transfer Modes :
 Risks :

❖ RTGS Minimum Amount :

RTGS is meant for high-value transaction . The minimum
limit for fund transfer under RTGS is ₹ 2 Lakh and you can
transfer funds upto ₹ 10 Lakh per day .

❖ RTGS Payments :
The electronic method of RTGS fund transfer can only be
used for making payments within the country as per the RTGS timing
for fund transfer .
❖ Instant Transfer :
The transaction in RTGS are quick and done on a
transaction to transaction basis in RTGS business hours , thus saving
time .

❖ Transfer Modes :
You can transfer funds through RTGS by online and offline
methods . To transfer funds offline, you need to visit the bank, and
you can also transfer funds thought net banking.

❖ Risks :
Further, there are no credit or settlement risks as fund are
settled instantly on a real – time basis.

Information Necessary to Make RTGS Fund Transfer :

If you want to transfer money through RTGS either through
offline or online mode you would require the following details of the
recipients .

➢ Beneficiary account number

➢ Beneficiary account name
➢ Beneficiary bank name and IFSC code
➢ The amount of transfer
➢ Cheque (for offline mode)

Modes Available to Perform RTGS :

There are two modes to transfer funds through RTGS
 Internet banking :
 Branch:

❖ Internet banking :
The first method for fund transfer through RTGS I by using
the internet facility provided by most of the banks. To make fund transfer
 online through net banking, you need to add the beneficiary online by
entering details about the bank account including bank name ,IFSC
code etc,,.. After successfully adding the recipients, you can now
transfer funds to the beneficiary.

❖ Branch :
You can also visit nearest bank branch and fill the RTGS
form to make fund transfer through RTGS. Finally, make the payment
through cash or cheque of the amount that you need to transfer.

How to make RTGS Funds Transfer Online?

To make RTGS funds transfer through online mode, you need
to follow the below mentioned steps :

• Firstly, login net banking account of the bank using your

login conditionals by officially visiting the bank website.
• Now, add the beneficiary account details such as bank name,
IMPS code account name and number.
• Next, select the RTGS mode under the fund transfer tab and
enter the mount of fund transfer.
• Finally, accept the terms and conditions as mentioned and
submit the RTGS online form.

RTGS timing :
The timing for transactions vary from bank to bank. As per the
RBI guidelines you can perform RTGS transaction 24*7 from 14th
December 2020. But no transaction on Sundays .

RTGS Limits :
RTGS transfers are primary for high – value transaction and the
minimum amount you can transfer via RTGS is ₹ 2 lakh. However there
is no upper limit for transferring money through RTGS by visiting the
 bank branch. In case, you do RTGS transfers through internet banking;
you can send a maximum of ₹ 25 lakh per day per customer.

Here are a few advantages of using RTGS:

• The fund transfer occurs in real time.
• The transfer can occur online.
• RTGS is predominantly used for high-value transactions.
• The system is highly reliable and is powered by the RBI.
• It offers immediate clearing.
• The process follows a one-to-one basis for crediting the funds.

Limitations of RTGS
RTGS does not provide the facility to track the transaction to
its customers, as only the positive confirmation feature is implemented
by the central bank in which the remitting bank gets a message of fund
transfer to the beneficiary bank, from the central bank.