RTGS -Meaning, Full Form, Charges and Process

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 (Real Time Gross Settlement):

• Real-Time Settlement: One of the key advantages of RTGS is that funds are transferred instantly, providing immediate availability of the funds to the recipient.
• High Security: RTGS transactions are highly secure as they are settled individually and in real-time, reducing the risk of fraud or interception.
• No Intermediaries: RTGS eliminates the need for intermediaries, ensuring direct and seamless transfers between banks and reducing delays and costs associated with intermediary banks.
• High Transaction Limits: RTGS is particularly suitable for high-value transactions as there is usually no upper limit on the amount that can be transferred. The minimum transaction in this mode is Rs. 2 lakhs.
• Improved Cash Flow: Businesses can benefit from RTGS by having better control over their cash flow, as payments are settled immediately.

RTGS transfer can be done in two ways. They are the online and the offline mode. For online transfers, one can choose the option of online banking and mobile banking services of the respective bank. 

Based on the mode that the user opts for, they will have to follow the steps that are mentioned here:

• Through Online Banking

Most banks offer RTGS facilities through their online banking portals, allowing customers to initiate transactions from the comfort of their homes or offices. 

For this, the user will have to log in to the bank’s online banking portal and will have to enter the RTGS amount and beneficiary details to authenticate the payment.

• Through Mobile Banking

Many banks provide mobile applications that allow RTGS transactions, enabling customers to transfer funds conveniently through their smartphones. Users can avail of this service by logging in to the mobile banking application of the respective bank.

• Through Branch/Offline Mode 

Customers can also visit their bank branch to request an RTGS transaction, where the bank representatives will assist in processing the transfer. One will have to fill out the RTGS form and enter all the necessary details, such as the beneficiary’s name, account number and transfer amount.

RBI has removed charges on the transfer of RTGS transactions that are initiated online. For offline mode of fund transfer, the charges levied on RTGS transactions may vary from one bank to another, depending on the transaction amount. Some banks may offer lower RTGS charges for premium account holders or specific customers.

Please note that the specific charges and transaction methods may vary depending on the banks offering the RTGS service. It is advisable to check with your respective bank for accurate and up-to-date information.

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.