RTGS is an abbreviation for "Real Time Gross Settlement". RTGS can be defined as specialist funds transfer system to transfer the money from one bank to another on continuous (real-time) and gross settlement basis. It allows the individuals as well as the companies and the firms to transfer funds from one bank to another bank within the country.
'Real Time' means that the process of instructions is executed at the same time as soon as it is received rather than at some later time.
"Gross Settlement" means that the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis).
For RTGS transaction, you need to fill up a form providing your or the beneficiary's details such as name, bank, branch, IFSC Code, a unique code for identifying the branch and the account number with account type. You have to attach a cheque while opting for this facility.
For RTGS transaction, you need to fill up a form providing your or the beneficiary's details such as name, bank, branch, IFSC Code, a unique code for identifying the branch and the account number with account type. You have to attach a cheque while opting for this facility.
In case, for any reasons, the funds are not credited to the receiver's (beneficiary's) account, they will be returned to the originating bank within 1 hour or before the end of the transaction day.
RTGS is available 24x7, 365 days with effect from December 14, 2020. Earlier, RTGS transactions used to be available between 7 AM and 6 PM on all working days except for the second and fourth Saturday of the month and on Sundays.
RBI has regularised that RTGS transactions will have round the clock availability on all days of the year and hence the bank customers can transfer funds through RTGS around the clock on all days including holidays. Now India has become one of the very few countries globally with a 24x7x365 large value real time (RTGS) payment system. You can check out here the difference between NEFT and RTGS.
RTGS operations began on March 26, 2004 with just 4 banks. It presently (as on Dec, 2020) handles as many as 6.35 lakh transactions per day for a value of Rs 4.17 lakh crore across 237 participant banks, according to news agency PTI.
The detailed process to make fund transfer through RTGS has been described below:
If the beneficiary is not already added for fund transfer, add the beneficary first. and then proceed for fund transfer through RTGS.