RTGS is a payment facility that allows you to transfer money swiftly from one bank account to another. While UPI-based transfers are common nowadays, they are only feasible for payments of ₹1 lakh or under. For a larger amount, there are other online methods to opt from.
One of those is RTGS, which does not involve a waiting period like an NEFT transfer. Read on to learn more about RTGS payment, its features, RTGS charges, transfer time, and more.
The Reserve Bank of India established RTGS in 2004. It stands for Real-Time Gross Settlement. Here, ‘real time’ refers to the speed at which funds are transferred. As such, you get the experience of instantaneous transactions.
On the other hand, ‘gross settlement’ indicates the individual settlement of each transaction. This means that there is no bundling or grouping of multiple transactions. Together, this forms the foundation of the real-time gross settlement system.
As per the RBI guidelines, banks must follow the RTGS settlement time of 30 minutes. This results in a quick and efficient transfer of funds. This is why an RTGS money transfer is a popular option for many. It is no surprise that this is an option available across thousands of bank accounts in India.
There are several features of RTGS that make transferring money convenient and secure.
You can initiate fund transfers through this option from any location using online banking. Alternatively, you can opt for an offline option when you want to transfer funds after making a deposit in the bank.
Since the RBI has directed banks to keep the RTGS transfer time at 30 minutes, your requests get cleared instantly.
You cannot reverse an RTGS money transfer at any point. The transferred amount becomes irrevocable once you make the transaction through the system. This provides an added layer of security. You can rest assured that your funds will reach the intended recipient without any possibility of reversal.
The minimum amount supported by an RTGS money transfer is ₹2 lakhs. The RTGS system will not support a transfer amount below this threshold.
Most digital payments come with limitations like a transaction limit, maximum amount limit, etc. There is no upper limit for RTGS. This makes it an ideal choice for high-value transactions. However, keep in mind that online transfers related to RTGS may come with an upper cap, depending on the bank.
Also Read: Difference Between NEFT And RTGS
Among many benefits, it has some restrictions, such as:
RTGS gives you the facility to both receive and transfer funds. While receiving a payment attracts no charges for RTGS, but initiating it does. Although there is no processing fee charged by the RBI on RTGS transactions, banks may levy certain charges when paying a beneficiary offline. Such RTGS charges for transfers depend on your bank.
However, the RBI has set a cap on the maximum a bank can charge for an outward RTGS transaction. It is as follows:
Remember, these RTGS charges are only applicable when you choose an outward transaction, meaning a transaction where you are not the recipient. There is no charge levied on any inward transaction to your account through RTGS.
Follow these steps if you want to initiate RTGS via cheque:
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Now that you know its full form, how much time RTGS takes, and its features, remember to enter the correct details. This ensures quick access to funds, especially during an emergency.
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The full form of RTGS is Real Time Gross Settlement.
RTGS in banking refers to a secure electronic mode of instant fund transfers.
The RTGS system has been available in India since 2004.
An RTGS transfer is the process of sending funds instantly from one bank to another.
Here’s how to fill out an RTGS cheque:
RTGS is ideal for making instant transactions and should take no longer than 30 minutes, as per the Reserve Bank of India’s guidelines.
RTGS payments are a secure option for real-time transfer of money.
The transfer limit depends on the bank. However, the RBI has imposed no upper limit for RTGS transactions.
To draw a self-withdrawal cheque, you will have to write ‘Yourself for RTGS’ on the cheque leaf. You can also confirm this with a representative at the bank, as different banks may require different wordings.
As per the RBI, there is no maximum RTGS amount limit.
