April 26, 2023

What is the RTGS Full Form?

  • An over budgeted hotel stay- need funds at an odd hour and that too on a holiday to foot the bill.
    • Medical emergency- need funds to foot the hospital bill.
    • Last minute buy from the duty free shops at the airport- need funds to buy surprise gifts for the family**.**
    • As a corporation, I need to make large value and regular fund transfers to employee salary accounts and payment to vendors and other channel partners etc.
In all the above situations, you can utilise the payment gateway backed by the RBI, to transfer funds electronically from one bank account to the other on a real time basis using RTGS, Real Time Gross Settlement facility.
Available, everytime ( 247365), everywhere, you can transfer amounts of ₹2 lakh (minimum threshold limit) and above and the amount would reflect in the beneficiary's account within 30 minutes through a safe and secure payment gateway, thus eliminating the possibility of losses, thefts, or fraudulent encashment of funds**.**
It is important to note that while there is a minimum threshold amount limit, there is no maximum limit for amount transfer and that all RTGS payments are non-revocable and final.
This facility can be availed by both retail and corporate customers and the RTGS fund transfer can be done electronically ( internet or mobile), free of charge or through the bank branch, at a nominal service charge ( maximum amount capped by the RBI) which is to be borne by the sender. The beneficiary is not liable to pay any service charge.
Amount Service charge*
₹2 Lakh – ₹5 Lakh upto ₹24.50+GST
₹5 Lakh & above upto ₹49.50+ GST
The service charges (₹24.50 and ₹49.50 ) per RTGS transaction is capped by the RBI.
Banks may charge service fees lower than the capped amount.

Let us understand the nuances of the RTGS payment facility-

To transfer funds through the netbanking channel you must begin by registering yourself for RTGS services via the bank's official web portal.
You can enter the RTGS details of the beneficiary, the fund transfer amount and then validate the payment.
In case you don't have a netbanking account, you could avail the RTGS facility by visiting your bank branch, fill up the RTGS form with the beneficiary details and pay the amount in cash or cheque to the bank.
You need to fill in the following fields for fulfilling the fund transfer:
  • The exact fund transfer amount
    • Beneficiary details in terms of name, account number, IFSC Code, Beneficiary bank name and bank branch.

Frequently Asked Questions (FAQs):

Q. What is the difference between RTGS and NEFT?

As the name indicates, RTGS fund transfers are settled instantly across banks on an individual and real time basis. It does not net debits with credits, covering the books of a central bank.
However, in case of NEFT services, fund transfers are settled in batches of half an hour i.e. in 48 hourly batches, every day from 12:30 AM to 12:00 AM.
In case of NEFT, there is no minimum or maximum threshold limit on the amount to be transferred, while RTGS transfers have a minimum limit of ₹2 Lakh per transfer.
While NEFT transfers take about 2 hours to fulfil, RTGS fund transfers are relatively quicker with fulfilment within 30 minutes.

Q. What happens if for some reason the RTGS Transfer Fails?

If for some reason the RTGS transfer fails, perhaps due to erroneous data feed or
insufficient funds in your account or perhaps technical glitch, in case the money has been debited from the sender’s account, it is usually credited back to the account within an hour or maximum of one working day.

Q. Which Banks in India Provide RTGS Facility?

As per the RBI, Thirty-two out of the 72 banks, are participants in RTGS system, which offer customer related RTGS fund transfer services through 840 branches in 134 major centres across the country.
The list of banks can be availed from www.rbi.org.in

Q. Is it possible to schedule an RTGS transaction in advance? What is the lead time?

Yes, you can schedule an RTGS transaction in advance. It can be done three days prior to the payment date.

Q. Can RTGS service be used to transfer money to foreign banks?

No, the RTGS system of payment can only be availed from banks located within India.

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RTGS Fastest Mode of Transfer

The cheetah, the panther and the tiger, all belong to the cat family. However, each one of them have unique as well as similar characteristics, with the cheetah being the fastest terrestrial animal within the kingdom. Likewise, within the realm of interbank payment transfers, you have the RTGS, IMPS and NEFT channels, each with their distinct characteristics and overlapping similarities. However, for payments to the beneficiary's/payee's account, above ₹ 2lakhs, RTGS is the fastest route to fulfil your requirement. Backed by the RBI, Real Time Gross Settlements, customers can avail this channel, everytime ( 247365), everywhere through RTGS enabled bank branches within India. As the name indicates, the settlement of payments occurs on a real time basis as fund transfer amounts are settled individually on a gross basis without netting, rather than in batches as in the case of NEFT payment gateway. Consequently, the amount is transferred to the payee's account within 30 minutes of initiation of payment. Customers, both retail as well as corporate, can transfer big ticket/ high value amounts of ₹2 lakh (minimum threshold limit) and above urgently to the payee's account within 30 minutes through a safe and secure payment gateway, thus eliminating the possibility of losses, thefts, or fraudulent encashment of money. This facility can be availed free of charge if executed online. However, if fulfilled via a bank branch, a nominal service charge ( maximum amount capped by the RBI) is levied on the sender as the payee is not liable to pay any service charge. Amount Service charge ₹2 Lakh – ₹5 Lakh upto ₹24.50+GST ₹5 Lakh & above upto ₹49.50+ GST The service charges (₹24.50 and ₹49.50 ) per transaction is capped by the RBI. Banks may charge service fees lower than the capped amount.