RTGS, which stands for Real-Time Gross Settlement, facilitates immediate and direct money transfers from one bank account to another. RTGS transfer is ideal for transferring amounts that are equal to or more than ₹2 Lakhs in real-time. RTGS does not adhere to a specific processing schedule, which enables instant settlement of money.
With RTGS, you experience quick and smooth transfer of money since every transaction you make gets immediately processed. It is a considered as a safe method of transferring money since it is managed by the Reserve Bank of India (RBI).
Read on to learn more about how you can transfer money through RTGS and much more.
Check out the steps that you need to follow for an online RTGS transfer.
Step 1: Visit your bank’s official website and log in to your Net banking account using your ID and password.
Step 2: Add the beneficial account details if you have not added it and authenticate it with the OTP sent to you.
Step 3: Proceed to the RTGS transactions section and input the required information, such as the payment amount, debit account number and remarks.
Step 4: Submit the request by agreeing to the terms and conditions and clicking on ‘Confirm’.
Step 5: Confirm your transaction and the funds will get transferred to the beneficiary’s account.
Here are the steps that you need to follow to initiate an RTGS fund transfer offline.
Step 1: Visit the nearest bank branch and obtain the RTGS form.
Step 2: Write the date of the transaction and the amount.
Step 3: Fill in the cheque details, your personal details and the beneficiary’s details carefully, including the IFSC code of the beneficiary’s account.
Step 4: Attach a cheque leaf from your account with the beneficiary’s details written on the back and other information written on the front.
Step 5: Submit the RTGS form to a bank representative, who will verify your details and process your RTGS transfer.
Real-Time Gross Settlement or RTGS transfers, offer a host of different features and benefits compared to other forms of electronic fund transfers. Let’s take a look at a few of the key ones.
1. Reliable
The technology used for RTGS transfers has been designed and operated by the Reserve Bank of India. Therefore, it is super reliable, with little to no downtime and 24/7 availability.
2. Safe and Secure
All the transfers made through Real-Time Gross Settlement require authentication via OTP, which is only sent to the registered mobile number. This makes these transactions very safe and secure.
3. Ideal for Transferring High-Value Amounts
The minimum transfer limit for RTGS is ₹2 Lakhs, with no ceiling on the maximum limit of transfer. This makes it perfect for transferring large amounts from one account to another.
4. Instant Credit
Since RTGS transfers are executed on an individual, real-time basis, the account gets credited instantly.
RTGS transfers typically get processed in seconds. This is because the aim of the system is to ensure that fund transfers are processed instantly so that the beneficiary account can be credited immediately.
Sometimes, however, in case of technical challenges, the RTGS transfer time can extend to a few minutes. It might be helpful to note that the RBI has made it mandatory for beneficiary banks to credit the beneficiary account within 30 minutes of receiving the transferred funds.
To ensure that the RTGS fund transfer process can be completed without any hiccups, you need to keep a few things in mind:
Ensure that your bank and the beneficiary’s bank are RTGS-enabled
Take note of the bank’s cut-off time, as it can impact the RTGS credit time
For online transactions, you must have an active Net banking account
Ensure you provide the correct details with regard to the RTGS beneficiary account as well as the debit account to reduce the processing time
You must have access to the below-mentioned information:
Beneficiary’s bank name
Beneficiary’s branch name
Beneficiary’s customer name
Beneficiary’s account number
Beneficiary’s bank branch IFSC Code
Amount to be transferred
Banks provide various customer query resolution setups for issues related to RTGS transfers. Some of the options that you can utilise for your issues with RTGS transactions are:
Customer care helpline number
SMS service
Chatbots
Email services
Alternatively, you can also visit the nearest branch of the bank and place a query regarding your RTGS transfers.
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FAQs on RTGS Transfer
Can I make RTGS transfers on bank holidays or weekends?
Yes, as per the recent RBI guidelines, the RTGS fund transfer facility is available 24x7, including weekends and bank holidays.
What is inter-bank fund transfer?
Inter-bank fund transfer refers to the transfer of funds between an account at one bank to another account in the same bank but at a different branch or another bank. The debit account is known as the account of the remitter, and the credit account is known as the account of the beneficiary.
NEFT, RTGS, and IMPS are some of the popular inter-bank fund transfer systems.
How much time does it take for an RTGS transfer?
For RTGS transfers, the time taken for processing is almost nil. This is because RTGS fund transfers are processed on a gross basis and not in batches. Sometimes, however, in case of technical difficulties, the RTGS fund transfer time can stretch to a few minutes.
Are fees and charges applicable every time I make an RTGS payment?
Yes, you may be required to pay certain RTGS fees and charges, as specified by your bank, for availing the RTGS transfer facility.
What is the difference between RTGS and NEFT?
Real-Time Gross Settlement, also known as RTGS, is vastly different from National Electronic Fund Transfer, also known as NEFT. One of the primary points of difference is in the time that it takes to credit the destination account.
RTGS transfers are instant, whereas NEFT transfers take anywhere from an hour to two for the destination account to get credited. Secondly, RTGS is more suited for large transactions of ₹2 lakhs and above, whereas NEFT is ideal for both small and large transactions since it has no minimum transfer limit.
Do all banks in India have an RTGS facility?
No, not all banks in India are RTGS enabled. That said, all the major private and public sector banks support Real-Time Gross Settlements. If you wish to make an RTGS transfer, it is a good idea to check whether your bank supports it before proceeding to effect the same.
Is it possible to schedule an RTGS transaction in advance?
Yes, you can schedule an RTGS transfer well in advance. At the scheduled date and time, the transfer will be effected automatically without the need for any manual intervention.
Can RTGS transfers be made on bank holidays and Sundays?
Yes, RTGS transfers can be made on all 24 hours of all days, including bank holidays and Sundays. However, there might be a small window each day between 11:30 PM and 00:30 AM, during which it might not be operational due to maintenance activities.
