RTGS Timings: How Much Time Does RTGS Take?

In the ever-evolving landscape of modern banking, the requirement for efficient and secure banking services has become paramount. Real-Time Gross Settlement, commonly known as RTGS, has become one of the best technological advancements in the banking sector. It is a secure and efficient mode of transferring high-value funds electronically. In this blog, we will discuss basic details about RTGS timings: how long it takes and things to focus on for seamless RTGS payment. 

RTGS Timings in 2024

The RTGS timings are available 247, and you can access it 365 days, including public holidays, weekends, and bank holidays. After the transfer is initiated, your bank will credit the recipient's account within 30 minutes of receiving the funds transfer message. Additionally, round-the-clock availability equates to undeterred initiation of your fund transfer at RTGS non-stop without waiting for banking hours to commence. 

RTGS helps to evade the need to prepare demand drafts and checks, thus easing the course of payments. Moreover, many banks provide online RTGS services, further facilitating the possibility of fund transfer without any visit to the bank.  

How Long Does RTGS Transfer Take?

Under normal circumstances, the RTGS transfer time is processed in real-time. As mandated by the Reserve Bank of India (RBI), the beneficiary bank receives the amount within 30 minutes of receiving the transfer message. The amount is reflected on the receiver's account within a few seconds.

However, in cases of delay, the originating bank is liable for all transactions as per the guidelines of the Income Tax Department. In the event that the beneficiary's bank cannot credit the funds, the money will automatically be collected back by the remitter's account. For example, SBI guidelines suggest that in case of a failed transaction, funds must be returned to the remitter's account within two hours

Things to Remember When Using RTGS Transfer

Although RTGS acts as a secure and rapid mode of transferring funds, you must know the following things when using the RTGS transfer after understanding the RTGS transaction time:

• The amount will only be transferred to the account mentioned in the RTGS form.
• You cannot cancel the RTGS payment transaction after initiating the process.
• You must carefully review the RTGS form and proceed with the process before initiating the transaction.
• When you fill out the fund transfer form, you must select between RTGS and NEFT. If you do not mention anything, the bank will automatically determine the fund transfer mode.
• The bank is not responsible for any misinformation in the beneficiary’s details. In addition, it is not liable for the consequences arising from such scenarios.
• If the RTGS transaction fails, the amount will be transferred to the sender’s bank account. If compensation is not provided, the sender can receive an amount equivalent to the current repo rate plus 2%.

Features of RTGS

After understanding the RTGS time taken, you must know its features. The following are the key features of RTGS:

Safety and Security: 

• RTGS is a highly secure mode of transferring funds. 
• The electronic nature of the transaction minimizes the potential for loss, deception, and theft, unlike physical instruments such as demand drafts or cheques.

No Maximum Limit: 

• RTGS does not have an upper limit on money transactions made by this mode of transfer. 
• This means that it is suitable for transferring any amount, either small or large, using the real-time gross settlement process.

Real-time Transfer: 

• Being a vital element in banking, RTGS allows real-time transfer of funds. 
• It ensures that the beneficiary's account is credited soon after the transaction is initiated and thus contributes to an effective process. 

No Physical Instruments: 

• When you use the RTGS method for transferring funds, it eliminates the requirements of physical instruments, like demand drafts and cheques. 
• It is an electronic process which streamlines the transfer and reduces the risk associated with physical documentation. 

Convenience of Internet Banking: 

• The internet banking facility allows you to easily initiate fund transfer through RTGS from the comfort of your own home or from work. 
• It gives you the freedom to process the transaction quickly and offers flexibility in the electronic fund transfer method. 

No Fees or Charges: 

• Although some banks may charge nominal fees for RTGS transactions, many banks offer this facility free of charge. 
• Hence, it becomes a cost-effective method for transferring funds within the real-time gross settlement framework.

Always Available: 

• In terms of functionality, the RTGS operation works on all days-round the clock throughout weekends and holidays. 
• It will, therefore, remain accessible at any time and make funds transfer more convenient and feasible. 

The Real Time Gross Settlement is a reliable and efficient system for high-value and time-sensitive fund transfers. Its real-time processing ensures that transactions are completed almost instantly, with settlement occurring within minutes during the operational hours set by banks. Typically, RTGS timings are 24x7 and 365 days a year, including public holidays and weekends. You can effectively leverage RTGS for seamless financial transactions by understanding the timing and process.

Related Article:
1. Differences between NEFT, RTGS and IMPS