RTGS

What is RTGS?

RTGS (Real-Time Gross Settlement) is an electronic payment system meant for high-value transactions, wherein funds are transferred on a real-time basis and gross. It is run by the Reserve Bank of India. RTGS is a safe and fast method for real-time transfer of funds between banks in India.

Important Features of RTGS

• Real-time settlement: Funds are transferred without any delay.
• Gross settlement: Each transaction is settled individually instead of in batches.
• High-Value Transactions: Basically utilized for high-value fund transfers.
• Managed by RBI: Ensures safety and reliability.

RTGS Transaction Details

• Minimum Transfer Amount: ₹2,00,000 (no upper limit).
• Operates on: 24x7, 365 days a year.
• Processing Time: During System availability all transactions are processed in real-time.

How to Use RTGS?

Via Bank Branch

• Fill up an RTGS request form in your bank branch.
• Mention the following details- name of beneficiary, account number, IFSC code, and amount transfer.

Online Banking:

• Login to your bank internet or mobile banking portal.
• Go through all the details, choose the option RTGS, and authorize the transaction.

Advantages of RTGS

1. Immediate Fund Transfer: Best suited for business-critical, high-value transactions.
2. Safe System: Managed by the RBI.
3. No Paper Work: The entire process is electronic, and it helps in saving time and difficulties.
4. All Indian Banks: All major banks are RTGS-enabled.

Application Scenario

Business enterprise critical value payments
Payment of property or high-ticket investment
Settlement of urgent debt obligations

RTGS Charges

• Internet Transactions: Most of the banks do not levy charges for such transactions.
• Nominal Charges: may apply as per RBI guidelines. Transactions on Branch basis.

Difference Between RTGS and NEFT

Feature	RTGS	NEFT
Settlement Time	Real-time	In batches
Minimum Amount	₹2,00,000	No minimum amount
Speed	Instant	Delayed