What is RTGS system and How it works?

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.

RTGS

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

Search banks IFSC Code

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

What is the minimum / maximum amount transferable for RTGS transactions?

Minimum-2 lakh
Maximum- no limit

How much time does it take for RTGS?

In real time as soon as funds are transferred by the remitting bank.

What are the Timings for RTGS?.

RTGS services could be accessed 27X7 from Dec 2020.

Are NEFT and RTGS are same?

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