RTGS

What does RTGS Stand for?

The  full form of RTGS in banking is Real Time Gross Settlement. This is a payment mode normally used for high-value transactions across different banks. To initiate an RTGS transfer, the minimum amount has to be ₹2 Lakhs or more. 

The RTGS full form in banking terms denotes the precise nature of this facility. The words ‘real time’ indicate that the fund transfer instructions are processed the moment they are received. This offers you the benefit of instant and continuous transfer of funds. 

The words ‘gross settlement’ refers to the fact that every transaction is considered on an individual basis rather than the net of debits and credits at the close of the day. As the RTGS payment system is tracked by the RBI, once you initiate a payment, it cannot be revoked or cancelled. 

Now that you know the RTGS full form in banking, you can rely on it as it is both safe and secure, which also  comes with legal backing. RTGS is a boon since it doesn’t come with any upper limit on the transfer value and is available around the clock. Moreover, it does not require visiting a branch or writing a cheque.

ON THIS PAGE: RTGS features | RTGS uses | RTGS process | Details required | RTGS failure | Things to keep in mind | How to resolve queries | FAQs

What are the Features and Benefits of RTGS?

The RTGS payment system allows one to transfer funds electronically from one bank account to another.

• It facilitates the real-time transfer of funds online.

• It is a safe and secure means of sending and receiving money.

• RTGS is reliable as it is maintained by the Reserve Bank of India (RBI).

• It is used for high-value transactions. The minimum RTGS limit is ₹2 Lakhs.

• Fees and charges depend on the RTGS transaction amount.

• RTGS timings differ from one bank to another.

• RTGS can be done online via net banking or by visiting your bank’s branch.

What are the Uses of RTGS?

RTGS fund transfer happens electronically and on a real-time basis. Also, you can transfer a large amount of money in one go. As a result, it is extremely popular among corporates and retail establishments, who need to conduct large value interbank transfers of funds regularly.

How to make an RTGS Transaction?

RTGS transactions can be carried out online as well as offline. Depending on the mode you opt for, you would need to follow the steps mentioned below:

1. RTGS Through Netbanking

To transfer funds instantly, you must first register yourself for RTGS services online through your net banking portal. Once that is done, you need to enter the RTGS details for the beneficiary, the amount you would like to transfer and authenticate the payment.

2. RTGS Through Bank

If you do not have access to RTGS net banking, you can still transfer money from one account to another using the Real-Time Gross Settlement system offline. All you need to do is visit your nearest bank branch, fill in the RTGS form with the beneficiary details, and pay the amount in cash or cheque.

What Details are Required for RTGS?

You would need to provide the below-mentioned details for successfully transacting via the RTGS system:

• The amount to be transferred

• Beneficiary account holder name

• Beneficiary account number

• Beneficiary account IFS Code (IFSC)

• Beneficiary bank name

• Beneficiary bank branch

Are There any Chances of RTGS Transfer Failures?

While RTGS is one of the most frequently used methods for money transfer, in some rare cases,  RTGS transfer may fail. The primary reason for this could be typing of incorrect/non-existent account numbers or insufficient funds in your account. Sometimes RTGS transfer failures can take place due to technical or server errors. However, if any of these technical issues or glitches occur where the transfer has failed but the money has been debited from your account, it is generally credited back to your account within an hour or a maximum of one working day.

What to Keep in Mind When Using RTGS?

Now that you are acquainted with the RTGS full form, its features and benefits, uses, and transfer methods, you are ready to use it to your advantage. However, there is one thing you need to know before you initiate an RTGS fund transfer. As RTGS transfers happen from one account to another, you must have a current bank account or savings bank account to validate your transfer request.

Which Banks in India Provide RTGS Facility?

Only RTGS-enabled banks offer the option of transferring funds using the said service. Popular Indian banks such as HDFC Bank, Axis Bank, RBL Bank, State Bank of India, etc., offer the RTGS service. However, before you opt for the service, you should take a look at the RTGS transfer process along with the RTGS fees and charges of the specific bank.

How to Resolve Queries for RTGS Transfer?

You can call on the bank’s customer care number to connect with an executive and resolve your RTGS-related queries. Other customer care channels, such as email, chatbot, etc., can also be used to address doubts or get additional RTGS information.

Apart from RTGS, you can also use IMPS or NEFT to transfer money from one account to another. Know about the difference between IMPS vs NEFT vs RTGS and select the mode that suits you best!