RTGS Full Form

RTGS is an online payment mode wherein the settlement is done in real-time, i.e., instantly. It does not happen in batches like other payment modes. It is as good as depositing cash into the account. It happens so fast. Get to know more about RTGS Full Form and facts about RTGS in detail from this article. 


RTGS Full Form

RTGS Full Form, i.e., Real Time Gross Settlement, is an online payment system wherein the settlement happens transaction-wise. Since settlement is not done in batches, there is no time lost, and the beneficiary's account gets credited instantly within minutes. With the development of this online payment system, the need to visit a branch to conduct funds transfers were eliminated. Now the customer can do the funds transfer at their convenience and at any time and from anywhere.

What are the pre-requisites to perform an RTGS transaction?

You should keep the following details handy before you initiate an RTGS transaction.

  • Basic details of the sender
  • The amount that has to be transferred
  • Name of the Payee
  • Bank account details of the Payee
  • IFSC Code of the beneficiary bank

What are the features of RTGS?

The following are the features of RTGS.

  • The fastest mode of funds transfer
  • RTGS service is available throughout the day on 365 days, including weekends and holidays.
  • It is a safe and secure mode of funds transfer.
  • Since the settlement is made in real-time transaction-wise instead of batch wise, no time is lost, and the money gets credited immediately to the beneficiary's account.
  • The professional charges for RTGS are nil, but the banks/financial institutions stipulate service charges for every RTGS transaction, which will be within the limit set by the RBI.
  • There is no maximum limit for the transfer of funds through RTGS.
  • RTGS transactions can be done using Net Banking services or by visiting the nearest branch.
  • RBI has put a cap on the service charges for RTGS, and the financial institutions should keep the services charges within the capped limit.

What are the modes available for RTGS funds transfer?

You now know the RTGS Full Form and its benefits. The next thing is to understand the modes for RTGS Funds transfer. There are two modes for RTGS Funds Transfer. 
Internet banking 
You should register for internet banking by raising a request with the bank where you have your account. Once you have access to the net banking facility, you can add the beneficiary online by providing the bank account details, name and IFSC Code of the beneficiary. On adding the beneficiary, you can transfer funds to the beneficiary's account through RTGS. This facility is available for both retail as well as corporate customers. 
Through branch 
If you do not have access to the net banking facility, you can visit the branch and send funds through the nearest branch of the bank by filling up a form wherein you provide all the required details for the transaction.

What is the procedure for funds transfer through RTGS online?

Before initiating the funds' transfer RTGS online, i.e., by using net banking services, you will have to add the beneficiary. Follow the steps given below for beneficiary addition.

  • Login to net banking services using the login credentials
  • Choose the funds' transfer option on the dashboard.
  • Go to the 'Add Beneficiary' option.
  • Provide the name, bank account details of the beneficiary and IFSC Code of the beneficiary bank
  • Click on the 'Add' button and confirm.
  • Authenticate the addition with the transaction password, and the OTP sent to your registered mobile number.
  • You will get the confirmation for the same on your mobile once the beneficiary addition is successful.

The next step will be funds transfer, and you should follow the steps given below:

  • Select the funds' transfer option and choose RTGS among the different payment methods.
  • Choose the account from which the amount has to be debited.
  • Select the beneficiary from the beneficiary list.
  • Enter the amount and the purpose of the transfer.
  • Click on the confirm button.
  • Authenticate the transaction using the transaction password.
  • Enter the OTP which was sent to your registered mobile number and click on the submit button.
  • With submission, the transaction will be complete, and the beneficiary's account will be credited.
  • A confirmation will be sent to your registered mobile number.

What are the charges collected for the RTGS transactions?

The charges collected for RTGS transaction is not uniform. Each bank has a different fee structure for RTGS. However, there is a threshold limit stipulated for RTGS service charges by RBI, and the charges have to be within the limit.

For transactions between Rs. 2 lakhs to Rs. 5 lakhs: Maximum Rs. 30/- plus GST 
For transactions above Rs. 5 lakhs: Maximum Rs. 55/- plus GST.

What are the timings for the RTGS transactions?

Earlier the transaction timings for customers to perform funds transfer through RTGS was 7 a.m. to 6 p.m. But as of date, the facility is available round-the-clock, and customers can transfer funds through RTGS round the clock. The timings for inter-bank transactions will be 7.00 a.m. to 7.45 p.m.

Is there any limit on the amount that can be transferred through RTGS?

The minimum limit for transferring funds through RTGS is Rs. 2 lakhs. There is no maximum limit if the amount is transferred through the bank branch. However, if the amount is transferred through RTGS using internet banking facilities, there will be a cap on the amount that can be transferred. It varies from bank to bank. It could be anywhere between Rs. 10 lakhs to Rs. 25 lakhs 

What happens if an RTGS transaction fails?

RTGS Full Form, i.e., Real Time Gross Settlement transactions, seldom fail. If the transaction fails, it could be due to some wrong information like wrong account number; account closed etc. In such cases, the amount will be refunded to the originating bank within 1 hour. On receipt of the amount by the remitting bank, it will be recredited to the sender's account by the respective bank branch.


With a great amount of information about the RTGS Full Form and the associated details like its features, modes of RTGS, the minimum amount allowed for transfer through RTGS, the charges levied and the effect of a failed transaction, you are now totally equipped to perform an RTGS transaction either through net banking or by visiting a bank branch.

RTGS Full Form FAQs

What does inter-bank transfer stand for?


Inter-bank transfers mean the transfer of funds from a bank account to a bank account in another bank through online modes like RTGS, NEFT and IMPS.

How does the settlement happen in the case of an RTGS transaction?


Normally the beneficiary bank branch receives the funds in real-time, i.e., immediately after the funds' transfer through RTGS is complete. The beneficiary bank branch should credit the amount to the beneficiary account within 30 minutes of receiving the message of funds transfer.

What happens to the fund in case of an RTGS failed transaction?


Instances of failed RTGS transactions are very rare. Even if it happens, it could be due to wrong information like a wrong account number or a closed account, etc. If the transaction fails for any reason, the funds will be recredited to the remitting bank within 1 hour, and the bank branch will re-credit the amount to the sender's account.

What are the pre-requisites for an RTGS transaction?


What are the pre-requisites for an RTGS transaction?

The pre-requisites for RTGS transactions are 

  • The name of the beneficiary
  • Account number of the beneficiary
  • IFSC Code of the beneficiary bank
  • The amount to be transferred.
  • Basic details of the sender.

What are the minimum and maximum limits for RTGS transactions?


What are the minimum and maximum limits for RTGS transactions?

The minimum amount for an RTGS transaction is Rs. 2 lakhs. There is no maximum limit if the transaction is done through the bank branch. But if the transaction is done online, there will be a maximum stipulation that varies from bank to bank.