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12 May 2021

What is RTGS in Banking Terms?

RTGS stands for Real-Time Gross Settlement. It is a payment system that allows the instant transfer of funds. This implies that when you make a payment from your bank account using RTGS, the money is immediately transferred electronically to the beneficiary account. The term ‘Gross Settlement’ here refers to the system of processing transactions individually and not in batches. RTGS mode of payment can be used for making your debit card and credit card payments.

Now that you know the RTGS full form and what it means in banking parlance, let us take a look at the benefits of this service.

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 RTGS minimum 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 netbanking or by visiting your bank’s branch

How to do 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:

  • RTGS Through Netbanking

To transfer funds instantly, you must first register yourself for RTGS services online through your netbanking 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.

  • RTGS Through Bank

If you do not have access to RTGS netbanking, 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

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!

Frequently Asked Questions

  • ✔️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 opt to avail NEFT transfer online via netbanking.

  • ✔️What is RTGS meaning in banking terms?

    The RTGS full form in banking parlance 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.