What is RTGS? | How to Transfer Money Through RTGS

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.

RTGS Key Highlights

  1. RTGS facility of money transfer is available only for domestic transactions among banks within India
  2. Fund is transferred real time, within few minutes
  3. It can be offered only by RTGS enabled bank branches
  4. Minimum Amount - Rs 2,00,000
  5. Maximum Amount - No limit, however, banks may restrict the amount you can transfer in one day.
  6. Transaction Charges -
    • For Rs 2 lakhs to Rs 5 lakhs: Not more than Rs 30/- per transaction
    • For anything above Rs 5 lakhs: Not more than Rs 55/- per transaction
  7. Transaction Timings - The transactions are processed on order basis in real time. This service is available:
    • From 8 A.M. to 6 P.M. on the weekdays (Monday - Friday) and also on working Saturdays i.e. Saturdays other than 2nd & 4th Saturdays.
    • The transfer is instant but the bank is allowed to take up to 2 hours for crediting the amount to the depositor account.
  8. There is also an option to schedule RTGS transactions in advance within a timeframe of 3 working days from the current day

What Happens When Funds Transferred through RTGS are not Credited to the Receiver's Account?

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.

How to Transfer Funds through RTGS?

  1. For transferring funds through RTGS, you must have the net banking facility enabled in your bank account.
  2. Login to your account through net banking using login id and password
  3. You need to add a beneficiary to your account, if not yet added, before transferring the funds to his account.
  4. You need to enter the beneficiary's details such as full name, account number IFSC code, bank name, branch and city as per his bank account details in order to add beneficiary in your account.
  5. After the beneficiary is added successfully, you will receive a message that beneficiary has been added to your account.
  6. Now you can transfer the funds to the beneficiary's account.