RTGS stands for Real-Time Gross Settlement. It is a system for transferring money between banks in India instantly and on a gross basis (meaning funds are settled individually, not in batches). Here is what you need to know:
An RTGS transaction is settled in real-time, typically within a few minutes, if initiated during operating hours (which vary for each bank, typically from 9:15 AM to 4:30 PM IST).
RTGS charges
The charges for a RTGS transaction vary according to the amount you are looking to transfer.
Expect a charge of around Rs. 15- Rs. 50 for online transactions and slightly higher for offline ones.
How to do RTGS transactions
RTGS transfer: How to do fund transfer online?
You can initiate an RTGS transaction online or by visiting your bank branch in person. Both methods require:
- Beneficiary details: Name, account number, IFSC code, bank name
- Transaction amount
- Sufficient funds in your account (minimum transfer amount is Rs. 2 lakh, varies according to bank)
Online RTGS process:
- Log in to your bank's net banking portal
- Find the ‘FUNDS TRANSFER’ or ‘PAYMENTS’ section
- Choose ‘RTGS’ as the transfer method
- Add beneficiary details if not already saved
- Enter the transfer amount and confirm
- Pay the applicable charges or they will be auto debited, depending on your bank regulations
- Funds are debited from your account and credited to the beneficiary's account instantly
Offline RTGS process:
- Visit your bank branch and request an RTGS form
- Fill out the form with beneficiary details, amount, and your account information
- Submit the form with a cheque or cash (depending on bank policy)
- The bank processes the transaction and settles it in real-time
Benefits of RTGS transactions:
- Fastest & most secure way to transfer large amounts.
- Funds are settled instantly, unlike NEFT which operates in batches.
- Suitable for urgent, high-value transactions like property purchases.
RTGS transaction time
- Transaction processing: RTGS transactions are processed continuously throughout the working day, from 7 am to 6 pm IST on weekdays.
- Fund transfer: Under normal circumstances, the beneficiary bank should credit the beneficiary's account within 30 minutes of receiving the transfer message from the remitting bank.
RTGS transaction limit
RTGS transactions in India have the following key points regarding limits:
- Minimum Limit: There's a minimum limit of Rs. 2 lakhs for initiating an RTGS transaction.
- Maximum Limit: Unlike the minimum limit set by the RBI (Reserve Bank of India), the maximum limit for RTGS transactions can vary depending on your bank.
Conclusion
In conclusion, RTGS provides a swift and secure solution for transferring large sums of money between Indian banks. Funds are settled instantly, typically within minutes, making it ideal for urgent and high-value transactions. Initiating an RTGS transaction is straightforward, and available through online banking or your local branch. While processing charges apply, they offer a small price to pay for the speed and safety this system delivers. Remember to verify beneficiary details meticulously and be aware of your bank's specific operating hours and minimum transfer amounts for a smooth RTGS experience.
