RTGS full form - Real-Time Gross Settlement is the payment system that lets instant transfer of funds take place. It means that when you make a payment from your bank account using RTGS (RTGS full form in banking also means the same), the money will be instantly transferred in the electronic form to the beneficiary's account.
RTGS full meaning - the system of processing transactions individually and not in batches. RTGS mode of payment could be used for making your debit and credit card payments. Now that you know RTGS's full form and its meaning in the banking environment, this post discusses it in detail.
RTGS is used in the transfer of very large amounts and on a real-time basis. It is used by retail as well as corporate account holders to transfer instantly. Therefore - it helps to get you the money instantly.
Here are the primary features of RTGS:
In order to get the RTGS mode transfer done, one needs to have a savings account or a current bank account.
RTGS Online |
RTGS Offline |
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How to Make RTGS Transfers? RTGS transfer of money can be done in two ways, as already mentioned, and they are the online and the offline mode. Based on the model that you will opt for, you will have to follow the steps that are mentioned here: |
a) Online RTGS In order to transfer funds instantaneously, you will have to register for the services online and through the net banking portal. Once this has been done - you will have to enter the RTGS information for the beneficiary - the amount that you would like to transfer and authenticate the payment. |
b) Offline RTGS If you do not have access to RTGS net banking or mobile banking, you could still transfer money from one account to another with the real-time gross settlement system offline. All you would need is to visit the closest bank branch - fill out the RTGS form and pay the amount in either cash or cheque. |
Charges of RTGS Transactions Here are the charges for both forms of RTGS transactions: |
a) For Online RTGS Transfer RBI has removed services charges that incur with the transfer of RTGS transaction funds for what is initiated online. |
b) For Offline RTGS Transfers For the RTGS transactions that are initiated at the bank, the charges of it could differ from one bank to another one. There is still a maximum cap on the maximum amount that a bank will charge based on the transaction. The bank would not be able to charge more than Rs. 55 for a single RTGS payment. According to RBI - the service charges should not be more than Rs. 30 for an outward transaction of Rs. 2 lakhs and up to an amount of Rs. 5 lakhs. It should not be more than Rs. 55 for transactions that are more than Rs. 5 lakhs. You could also check with your bank before you make the transaction to know the exact costs of the transfer. You can expect the charge to be higher when the amount that needs to be transferred increases. |
RTGS has a chance of failing too. A non-existent account or if there are insufficient funds - are the common reasons for the failure of RTGS transactions, and the amount, if debited, will be credited back into the back of the payer or the account holder.
This will happen as soon as the bank on the other end remits the specific amount. The amount is typically within an hour of the failure or at the maximum by the end of the working day.
The RTGS transfers were constructed in the aspect of high-value transactions only. You will have to transfer only beyond the predetermined limit of the amount - that is, more than 2 lakh rupees.
If there was a delay, then the originating customer will get compensation for the current repo rate.
In NEFT, the transactions that are received are up to a particular time and processed in batches. In RTGS, the transactions are processed continuously, one by one, throughout the whole day.
It means a unique transaction reference number.
Yes - the payments are final and cannot be reversed.
Yes - you will have to have all the details of the beneficiary to process the payment.