Real-Time Gross Settlement (RTGS)- Timings, Transfer Process, and Limit

In India, payments and settlements are governed under the Payment and Settlement Systems Act, 2007 (PPS Act). RTGS is one of the most popular payment settlement systems in the country, which can be used for offline and online money transfer. Here, we arrange the bits of information regarding RTGS for you.

What is RTGS fund transfer?

Real-time gross settlement (RTGS) was launched in the year 2004 by the Reserve Bank of India. It is a system that performs continuous real-time fund transfers. Here, ‘real-time’ means that the instructions are processed at the very moment when they are received rather than any sort of delay. Similarly, gross settlement means the fund transfer instructions will be handled on an instruction by instruction basis. 

This money transfer technique is primarily meant for large value transactions. The Reserve Bank of India has waived off charges for RTGS transactions only to boost the popularity among the citizens. The apex bank has asked the commercial banks to pass on the benefits to customers. About 1,40,000 bank branches are RTGS-enabled in the country.

What are the features and benefits of choosing RTGS?

The features and benefits of RTGS funds transfer are:

• It is a safe and secure way of transferring funds.
• There is no maximum limit for RTGS transfers through the bank branch.
• You can perform a real-time fund transfer to the beneficiary account.
• Funds can be transferred on all days.
• A physical cheque or demand draft is not required.
• No likelihood of loss/theft of physical instruments and the fraudulent encashment for beneficiaries.
• The transaction can be initiated from his/her home/workplace using internet banking.
• Funds can be transferred without any fees or charges.
• RTGS transactions are backed legally.

What information is necessary to make an RTGS transfer?

You have to provide the following information while initiating an RTGS transfer:

• Remitting account details.
• Name of the beneficiary bank and branch.
• Name of the beneficiary customer.
• Beneficiary account number.
• Amount to be transferred.
• Remarks or notes if any.
• IFSC number of the receiving bank.

What modes are available to perform RTGS?

There are two modes to perform RTGS: 

Internet banking

Many banks offer the facility to add beneficiary online using the internet banking facility. Upon successfully adding beneficiaries, you can transfer funds to the beneficiary. In addition to individuals, corporate account holders can also utilise internet banking to make RTGS transfers. 

Branch

Visit the nearest bank branch and fill the RTGS form to initiate a fund transfer.

How do I make RTGS fund transfer online?

Steps to add beneficiaries for an RTGS transaction: 

Step 1: Log in to your bank’s net banking website using your customer ID and password. 

Step 2: Go to ‘Funds Transfer’ section. 

Step 3: Click on ‘Add Beneficiary’ option. 

Step 4: Provide beneficiary account details such as account number, IFSC, bank name, and branch name. 

Step 5: Click the ‘Add’ button and then confirm your action. 

Step 6: You may have to authenticate the addition by typing in your credentials. 

Step 7: A confirmation message will be sent to you once the beneficiary is added. 

Upon adding a beneficiary, you can start transferring funds using the following steps:

 Step 1: Go to the ‘Funds Transfer’ tab on your bank’s internet banking page. 

Step 2: Select the beneficiary’s account number. 

Step 3: Enter the amount to be transferred. 

Step 4: Select the checkbox that says you agree to the terms and conditions. 

Step 5: Review the details and click the ‘Confirm’ button to complete the process.

What are the customer transaction timings for RTGS?

There have been a few updates in the transaction timings for RTGS transfers. According to the latest update on 26 August 2019, customers can perform RTGS transactions from 7 a.m. to 6 p.m. Inter-bank transactions can be performed from 7 a.m. to 7:45 p.m.

What are the transaction limits for RTGS?

The minimum amount you can transfer via RGS is Rs.2 lakh. When it comes to the upper limit, there is no associated cap when you transfer through the bank branch. Instead, if you choose to do the transfer via internet banking, there may be a limit. It is generally Rs 25 lakh, it may vary across banks. 

Are fees and charges applicable to perform an RTGS transaction?

Online RTGS transactions can be done free of charge. However, RTGS transactions done through bank branches may incur certain transaction charges along with GST.