RTGS stands for Real Time Gross Settlement. Under RTGS, processing of your payment instructions are done at a real time rather than at some other time i.e. settlements are done instruction wise from the banks.
In Real Time Gross Settlement funds from your bank account are transferred to another bank account on a real time (i.e. settlements are done without any waiting period). In India RTGS process is maintained and managed by Reserve bank of India.
Minimum amount to be remitted by using RTGS facility is Rs. 2, 00,000. There is no maximum ceiling limit fixed for it.
When you do RTGS, money transfers in real time from your bank to another bank. After getting the fund transfer message, the receiver bank will credit the party account to whom you have transferred the money.
How RTGS or Real Time Gross Settlement process works in India
To send money under RTGS, both sending bank and receiving bank should be RTGS enabled. If any of them are not RTGS enabled bank then you cannot do such transactions.
Followings are steps to be followed for RTGS;
- If you want to transfer money from your account to another bank account then you need to visit your bank where you have a bank account. Most of the banks are providing RTGS facility with their net banking option. If you have such type of facility then you can avail it online.
- Request your banker for an RTGS.
- Your banker will process RTGS request to the bank to which you want to transfer the money.
- Money from your bank account will be routed through RBI. RBI after sending the money to the receiving bank will intimate your banker that the money transfer requested under RTGS has been sent.
- Your banker will intimate you after getting a message from RBI.
All these processes happen in real time and these steps are over within few minutes.
If due to some reason your money has not reached the receiver then the receiver bank will pay the money back to your banker and in turn your banker will pay it to you.
These transactions are processed continuously through the RTGS business hours. Real Time Gross Settlement times vary from bank to bank but the general timing is 9 AM to 4.30 PM on week days and on Saturday from 9 AM to 1.30 PM.
Processing charges on RTGS
Processing charges for Real Time Gross Settlement vary from bank to bank. Followings are the normal fees that are charged on RTGS transactions;
| Transactions | RTGS Charges | |
| Inward Transactions | Free | |
| Outward Transactions | ||
| i) | 2 lakhs to 5 lakhs | Rs. 30 per transaction |
| ii) | Above 5 lakhs | Rs. 55 per transaction |
Details required for RTGS Transactions
Your banker for RTGS transaction will be asking for following things;
- Amount to be sent
- Your Bank account number
- Bank Account Number, Name and Bank details of the person to whom you are going to send the money
- IFSC number of the bank to which you want to send money
All most all banks are covered under Real Time Gross Settlement option. Few interior branches of certain banks are not under RTGS.
