RTGS - Real Time Gross Settlement

RTGS or Real Time Gross Transfer is a mode of payment/funds transfer across India. Understand all about the RTGS process and its benefits through this article. Also, understand the RTGS limits so that you can make informed decisions and enjoy timely transfers whether for personal or professional use, without any delays. 

About RTGS - Real Time Gross Settlement

Thanks to technology, transferring funds to anyone across the country is now easy and convenient. There are numerous options available for doing the same. NEFT, IMPS, and RTGS are a few electronic methods of fund transfer. Every method has its own set of features and limitations. Let’s briefly understand what RTGS stands for, what is the RTGS process, how is RTGS payment done, and the real RTGS meaning in banking. 

What is RTGS?

The RTGS full form is Real Time Gross Settlement it is important to understand that RTGS is a fund transfer mechanism that allows real-time fund transfers on a gross basis. Thus, for easy understanding, RTGS may be divided into three-term

1.    Real-Time – All fund transfer requests are processed on a real-time basis. Thus, once the remitter submits the fund transfer request via the RTGS fund transfer mechanism, the funds are immediately credited in the beneficiary account.

2.    Gross - Unlike in the NEFT fund transfer system, where transaction credits are run in batches, in RTGS, each fund transfer request is considered as Gross or complete. Therefore, each fund transfer request is handled individually.

3.    Settlement - Once transferred, funds are considered 'settled' and transaction 'concluded'. Thus, a transaction cannot be reversed. Also, as the settlement of funds takes place in the books of the Reserve Bank of India (RBI), the country's apex bank, the payments made through the RTGS payment mechanism are considered final and irrevocable. 

RTGS is meant for high-value transactions, with RTGS minimum amount transfer being Rs. 2 lakh. The amount transfer settlement request takes place on an instruction basis and is not dependent on batch clearing; therefore, it ensures real-time fund transfer. It is an online payment mechanism offered by most banks across the country. The settlement of funds takes place in the books RBI; the payments made through RTGS are therefore final and irrevocable.

Additional Info: Also, check Unified Payment Interface (UPI) the most preferred mode of digital payment.

Top Banks Offering RTGS Money Transfer Facility 

BankLimitChargesTimings
SBI

Minimum Limit – Rs. 2 lakh

Maximum Limit – No Limit

Between Rs. 2 lakh to Rs. 5 Lakh – Rs. 20 + GST

Above Rs. 5 Lakh – Rs. 40 + GST

7:00 AM – 6:00 PM except for 2nd and 4th Saturday and Holidays 
HDFC

Minimum Limit – Rs. 2 lakh

Maximum Limit – No Limit

The maximum amount of funds that can be transferred per day as per the customer's TPT limit is up to Rs. 50 Lakh

RTGS from HDFC Bank branches are charged at Rs. 15 + GST

 

RTGS fund transfer is available 24X7 except between 11:30 PM to 00:30 AM due to cut-off
ICICI Bank

Minimum Limit – Rs. 2 lakh

Maximum Limit – Rs. 10 Lakh

RTGS done through Online Channels – NIL

RTGS done through bank branch 

Between Rs. 2 Lakh to Rs. 5 Lakh @ Rs. 20 + GST

Above Rs. 5 Lakh – Rs. 10 Lakh @ Rs. 45 + GST

1:00 hours to 19:00 hours Rs. 2 Lakh to Rs. 10 Lakh

 

19:00 hours – 00:00 hours and 00:00 hours – 01:00 hours - Rs. 2 lakh to Rs. 10 Lakh

 

2nd and 4th Saturday, all Sunday and Bank holidays - Rs. 2 Lakh to Rs. 10 Lakh

Axis Bank

Minimum Limit – Rs. 2 lakh

Maximum Limit – No Limit

No Charges

Online Channels – 7:00 hours to 17:45 hours

Retail Internet Banking -7:00 AM to 6:PM as per customer approval limit.

 

6:00 PM to 7:00 AM   up to Rs. 1 crore including 2nd and 4th Saturday, Sunday, and Bank holidays

Bank Of Baroda

Minimum Limit – Rs. 2 lakh

Maximum Limit – Rs. 5 Lakh

 

Between Rs. 2 Lakh to Rs. 5 Lakh @ Rs. 25 + GST between 8:00 AM to 11:00 AM

Rs. 27 + GST between 11:00 AM to 1:00 PM

Rs. 30 + GST for transactions after 1:00 PM

Available 24X7
Kotak Bank

Minimum Limit – Rs. 2 lakh

Maximum Limit – No Limit

 

Saving Bank Account

No charges if done through Mobile Banking or Net Banking

Through Bank Branch @ Rs. 25 +GST for RTGS between Rs. 2 Lakh and Rs. 5 Lakh

Rs. 50 + GST for RTGS above Rs. 5 Lakh

Current Account

No Charges if done through Net Banking

Through Bank Branch @ Rs. 25 +GST for RTGS between Rs. 1 Lakh and Rs. 5 Lakh 

Rs. 50 + GST for RTGS above Rs. 5 Lakh

Available 24X7 except for 11:30 PM to 00:30 AM due to cut-off
RBL Bank

Minimum Limit – Rs. 2 lakh

Maximum Limit – No Limit

No ChargesAvailable 24X7
PNB

Minimum Limit – Rs. 2 lakh

Maximum Limit – Rs. 5 Lakh

Between Rs. 2 Lakh to Rs. 5 Lakh @ Rs. 20 + GST

Above Rs. 5 Lakh @ Rs 40 + GST

7:00 AM to 6:00 PM

Additional Info: Check Banglarbhumi West Bengal Land Record in detail.

RTGS Timing

As per RBI notification, it is beginning 14th December 2020 RTGS payment system is now available round-the-clock. This means that, unlike earlier times when RTGS time was fixed between 7:00 AM to 6:00 PM on all working days, except for the 2nd and 4th Saturday, all Sunday, and holidays, the RTGS time is now extended to 24×7 a day, 365 days a year. However, there are different RTGS Banking Service Hours for different banks.

As the name suggests, RTGS payment is a real-time fund transfer system. The money is credited to the beneficiary account within a few minutes. The entire debit/credit process is assumed to be completed in a maximum of 30 minutes. 

Fund Transfer Process of RTGS 

The transfer of funds via RTGS involves a pre-set procedure. The step-by-step process is mentioned as below:

Step 1: Log in to your bank account through Net Banking or Mobile Banking. Alternatively, visit your bank branch to initiate an RTGS fund transfer process. The online channel will require your internet bank account login Username and Password.

Step 2: Move to the home page and select the Funds Transfer option.

Step 3: Choose from the existing beneficiary names or add a new payee by following the steps to add Beneficiary for RTGS.

Step 4: Choose RTGS as the payment option. Enter the amount details to be transferred to the beneficiary account and click ‘Submit’.

Additional Info: Also, check Axis Bank Net Banking service.

Steps to add Beneficiary for RTGS

Step 1- Log in to your bank account using your user ID and password.

Step 2– Navigate to the ‘Funds Transfer’ tab.-

Step 3- Click on ‘Add a Payee’.

Step 4– Enter the Beneficiary Account details, namely Bank Name, Name of Beneficiary as used in account, IFSC code, Account Type, etc.

Step 5– Submit the information by clicking on ‘Add’ and ‘Confirm’.

Step 6– Authenticate the registration request by OTP. The OTP will be received on the mobile number as registered with the bank account.

Once the registration request is successfully authenticated through OTP, the Payee is available for RTGS fund transfer.

Additional Info: Also check AnyRoR Gujarat Land Record.

RTGS Transfer Limit

RTGS fund transfer mechanism is designed for high-value transactions. The RTGS minimum amount for which a payment transaction can be initiated is Rs. 2 lakh. There is no upper limit restriction on RTGS payment by RBI. However, different banks have fixed a maximum RTGS payment amount too.

RTGS Transaction Charges

If all prerequisites are met, RTGS allows fund transfer to any bank within the country. However, certain service charges are levied if you initiate a fund transfer request through RTGS. The RTGS Transaction Charges are as under

  • No charges for inward remittance of funds through RTGS
  • No charges if the RTGS payment request is initiated online via internet banking or mobile banking.
  • An RTGS fund transfer request up to Rs. 5 lakh attracts a service charge of a maximum of up to Rs.30 per transaction plus GST.

For RTGS transactions of more than Rs.5 Lakh, a service charge cap has been fixed at 

Difference between RTGS and NEFT

RTGS stands for Real-Time Gross Settlement, whereas NEFT means National Electronic Fund Transfer. Although both are electronic fund transfer mechanisms, they are different in many ways. The few notable differences between RTGS and NEFT are:

CriteriaRTGSNEFT
SettlementsEach transfer is considered as ‘Gross’ or ‘complete’ and thus settled individually. Payment transfer requests are ‘Netted’, and therefore transactions are settled in batches.
TimingsProcessed immediately in real-timeThey are settled on an hourly basis during bank working hours. Transactions initiated after banking hours are settled on the next working day.
Transaction AmountThe minimum limit is Rs.2 lakh with no upper ceiling limitNo minimum limit but has an upper ceiling restriction limit.
PurposeIt is meant for high-value transactionsMeant for low or medium value transactions

RTGS FAQs

Is there a limit on fund transfers?

RTGS payment transaction can be initiated for a minimum amount of Rs. 2 Lakh. There is no upper ceiling limit on RTGS payments, but certain banks put an upper limit on daily fund transfers to limit the risk of fraud and wrongful transactions.

Are there any charges for RTGS transactions?

Fund transfer via the RTGS system entails a certain charge every time an RTGS payment is initiated. The paying bank levies the charge. However, no charges are levied for inward remittance of funds through RTGS. Also, no charges are levied on RTGS payment requests if initiated online via internet banking or mobile banking. RBI has capped the maximum service charge fee to Rs.30 per transaction plus GST for an RTGS fund transfer request up to Rs. 5 lakh. For RTGS transactions above Rs.5 Lakh, the service charge has been capped at Rs. 55 per transaction plus GST.

Are there provisions for international RTGS transactions?

No, RTGS fund transfer transactions cannot be initiated to make an international payment. The RTGS fund transfer system can be used to make payments in India only.

What information is required to do an RTGS transaction?

The information required to initiate an RTGS fund transfer request is

  • The amount of money that needs to be transferred.
  • Name of the beneficiary as appearing in the bank account
  • Name of the beneficiary bank, bank branch, along with IFSC code.
  • Account number of the beneficiary.
  • Type of account – Saving or Current Account.

What are the transaction limits for RTGS?

RTGS fund transfer mechanism is primarily designed for high-value fund transactions. Thus, the RTGS minimum amount is fixed at Rs. 2 lakh. Although there is no upper limit restriction on the amount for which RTGS payment can be initiated by RBI, different banks have fixed a maximum RTGS payment amount transferred per day to avoid chances of fraud and wrongful transactions.

What are the channels through which I can initiate an RTGS fund transfer?

RTGS fund transfer process can be initiated through internet banking, i.e. Net Banking or Mobile Banking. Alternatively, a visit to the nearest bank branch can help initiate an RTGS fund transfer request. 

What are the advantages of using the RTGS system?

Fund transfer via RTGS offers numerous benefits over other modes of electronic funds transfer mechanisms. These advantages are:

  • Safety and security in fund transfer.
  • RTGS fund transfer transactions have no upper limit cap.
  • RTGS fund transfer system is available on all days on a 24x7 basis. 
  • RTGS is a real-time fund transfer mechanism. 
  • The remitter of the payment is not required to use a physical cheque or a demand draft. 
  • It is an electronic fund transfer system and, therefore, absolutely paperless.
  • No risk of loss or theft of physical instruments.
  • RTGS fund transfer is an internet banking service and therefore can be initiated from anywhere, anytime.
  • The bank service charge for each RTGS transaction is capped by RBI.
  • The transaction has legal backing, and the fund settlement takes place in the books of RBI.

How much time does an RTGS transaction take?

As the name suggests, RTGS or Real Time Gross Settlement is a real-time fund transfer mechanism. Under normal circumstances, the beneficiary account is credited with the payment on a real-time basis, i.e. as soon as the fund transfer request is submitted by the remitter. As per RBI guidelines, the entire debit/credit process of fund transfer via RTGS cannot exceed 30 minutes.