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What is RTGS in Banking Terms? 

The full-form of RTGS is ‘Real-Time Gross Settlement’. Allowing the transfer of money and/or securities instantaneously, it is a perpetual process which settles payments across banks on an individual basis. It does not net debits with credits, covering the books of a central bank. Managed and run by the country’s central bank, RTGS payments are non-revocable and final.

 

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 lakh.

  • 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 transfer of funds on a regular basis.

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, the RTGS transfer may fail. The primary reason for this could be typing of incorrect/non-existent account numbers or insufficient funds in your account. In the case of online RTGS transfer, failure may occur due to technical errors or server errors. However, if any such technical glitches occur where the transfer has failed but the money has been debited from the sender’s account, it is usually credited back to the account within an hour or maximum of one working day.

What to Keep in Mind When Using RTGS?

Now that you are acquainted with the RTGS full form, 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, Citibank, 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!

FAQs about RTGS

  • ✔️Can I schedule an RTGS transaction in advance? How much time in advance?

    Yes, you can schedule an RTGS transaction in advance. It can be done three days prior to the payment date.

  • ✔️Can RTGS service be used to transfer money to foreign banks?

    Unfortunately, the RTGS system of payment can only be availed through RTGS-enabled banks located within India.

  • ✔️What is the maximum and minimum amount for RTGS?

    RTGS is a payment service used for higher value transactions and does not have a maximum amount. The RTGS minimum amount is ₹2 lakh.

  • ✔️Can RTGS be done without a cheque?

    If not by cheque, RTGS payments can be done by depositing cash at an RTGS-enabled bank branch. Alternatively, you can also opt for NEFT transfer online via net banking.

  • ✔️What does RTGS mean in banking terms?

     The RTGS full form in banking is ‘Real-Time Gross Settlement’. It refers to the real-time transfer of funds from one bank account to another. When you avail the service, the money is debited from your bank account and instantly credited to the beneficiary account electronically. The processing of payments in RTGS occurs individually and not in batches.