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RTGS Full Form - Real-Time Gross Settlement

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.

What is the Use of RTGS?

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.

Characteristics of RTGS

Here are the primary features of RTGS:

  • It is a safe and secure source of sending and getting money.
  • It will facilitate the real-time transfer of the funds right online.
  • It is also a reliable source as it is maintained by RBI.
  • As it is used for high-value transactions - the minimum transaction in this mode is Rs. 2 lakhs.
  • The fees and the charges of RTGS will depend on the amount of transfer.
  • The time for RTGS will differ from one bank to another.
  • It can either be done online or also by physically visiting the bank.

Prerequisites 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

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.

Failure of the RTGS Transaction

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.

Limitations of RTGS

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.

RTGS Full Form - Real-Time Gross Settlement - FAQs

Will I get compensation if the RTGS payment is delayed?

If there was a delay, then the originating customer will get compensation for the current repo rate.

How is RTGS different from NEFT?

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.

What is the meaning of UTR in RTGS?

It means a unique transaction reference number.

Are RTGS payments irreversible?

Yes - the payments are final and cannot be reversed.

Do I need beneficiary details to make an RTGS payment?

Yes - you will have to have all the details of the beneficiary to process the payment.

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