RTGS stands for Real Time Gross Settlement it is an interbank fund time system that transfers the fund on a ‘Real Time’ bases. It does not require any waiting period, unlike NEFT system. This system is generally used to transfer higher value transaction that requires instant effect.
How RTGS works?
RTGS money transfer is controlled by RBI itself. When a sender inputs a request for money transfer RBI electronically manipulates the sender and receiver Bank Accounts by reducing the amount of money in Sender and increasing the amount of money in Receiver Account. Here no physical exchange of money is involved.
How to do RTGS Fund Transfer
Step 1: Log in to your respective bank’s internet banking account by entering your username and password
Step 2: Go to the home page and click on the Funds Transfer option
Step 3: Proceed to choose RTGS, key in beneficiary/payee details such as account number, IFSC code, etc
Step 4: Review all the details and then submit. The funds will be credited immediately to the payee account
RTGS Timings
RTGS which was earlier available during banking working hours only is now made available 24X7 now. RBI has announced that from 1st Dec 2020, RTGS will be available all round the clock.
The benefit of RTGS Money Transfer
Here is the benefit of an RTGS transaction-
- Real-time online Money Transfer
- Used for high-value transactions
- Safe and secure
- Reliable and backed by RBI
- Immediate clearing
- Transactions executed on an individual and gross basis
FAQ on RTGS
Minimum-2 lakh
Maximum- no limit
In real time as soon as funds are transferred by the remitting bank.
RTGS services could be accessed 27X7 from Dec 2020.
No, they are a little different NEFT transfers money settled in batches and RTGS settles money individually making it faster.
To know more about NEFT Money Transfers and how it works click here