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, 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.
You should keep the following details handy before you initiate an RTGS transaction.
The following are the features of RTGS.
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.
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.
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.
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.
The next step will be funds transfer, and you should follow the steps given below:
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.
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.
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
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.
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.
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.
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.
The pre-requisites for RTGS transactions are
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.