What is RTGS and how it works

Do you know what is RTGS (RTGS in Hindi) and why it is important to have information about it. Nowadays we can do all the things of banking sitting at home. Now those days are gone when we had to go to the bank and stand in long queues and wait for a long time to get our challan or simple money transfer.

You can still do this but why waste your valuable time when we can do all these things from our home.

Nowadays many modern banking solutions are available such as Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), and Immediate Payment Service (IMPS) which make these payment processes very easy. With such services, we can do our transactions quickly, easily and securely.

So the banking solution we will learn about today is RTGS (Real Time Gross Settlement System), it is a very popular electronic fund transfer method in India.

Under this, money is sent in real time and on an individual basis. RTGS With the help of this, you can send more money from one bank account to another bank account simultaneously.

So in today you people will get complete information about what is RTGS on this article and how we can use it, then without delay let’s start and know that What is RTGS,

What is RTGS (RTGS in Hindi)

RTGS is a continuous, real-time process of funds settlement where funds are transferred from one account to another individually and on an order-by-order basis without netting.

If I say in simple language, then this is such an online banking method where money is sent from one bank to another without any waiting period.

what is rtgs

Reserve Bank of India According to (RBI) this term ‘real time‘ refers that it is processing all the instructions simultaneously as they are received and not leaving them to be processed at a later time.

and the second term ‘gross settlement‘ means that settlement of funds transfer instructions is done individually (on instruction-by-instruction basis).

Since this system is maintained by RBI, all the settlement of funds is recorded in their books or records, due to which RTGS payments are final and irrevocable which means it cannot be done again.

That’s why RTGS is a very fast way to transfer money through secure banking channels. Through RTGS you can at least 2,00,000 You can transfer up to Rs.1000 and there is no maximum limit, you can transfer as many funds as you want, until your bank branch sets a limit for you.

So it shows that the use of RTGS is suitable for the business of more money.

Apart from this, which is a very important advantage compared to other fund transfer methods, it is that all these interbank transfers It eliminates the settlement risks and it is very secure as it is operated by RBI.

What is the definition of RTGS?

RTGS (Real Time Gross Settlement) is a system through which money can be transferred online.

What is the full form of RTGS?

of RTGS full form It is Real Time Gross Settlement.

How to do RTGS

This question comes in people’s mind that how to transfer money with the help of RTGS. So the very simple answer is that we can do this in two ways, one is online way is another offline method. So I am going to give you information about both these methods.

Online Method for RTGS

For online method, you can do RTGS using Internet Banking. Under this, if the person to whom you want to transfer funds, you have to add them to your account as Payee or Beneficiary Customer.

Where you have to provide all the information about that customer and after that the Bank checks the details of that Beneficiary. For this work, it takes about 12-24 hours for the bank to check the details of the beneficiary.

When the Checking Process is completely completed by the Bank, then the Beneficiary Customer is activated by the Bank, after which you can transfer funds to that Beneficiary Customer.

To add any person as Beneficiary or Payee in your Bank Account, you must have the following information related to Beneficiary Customer, otherwise you cannot add him as Beneficiary through your Internet Banking A/c. :-

  • Bank and Bank Branch Name
  • Name And Account Number
  • of their bank IFSC Code (Indian Financial System Code)

Offline Method for RTGS

  • If you do not know how to apply online, then you can apply it offline as well, but for this you have to physically go to the Bank Branch and fill a slip in the same way as you normally do while doing Check Deposit or NEFT Form. Let’s fill
  • As soon as you deposit the Instruction Slip by filling it, the Sending Bank feeds the information filled in that Instruction Slip to its Central Processing System.
  • As soon as it is fed on the Information Central Processing System, it is sent to RBI.
  • After this, RBI completes the whole transaction by processing and debiting the amount (money) from the account of the sending bank and credits that amount to the account of the bank to which RTGS has been done.
  • After this whole process a Unique Transaction Number (UTN) is generated, which RBI sends to the amount sending bank. Sender Bank receiving this UTN means that your fund has just been transferred.
  • As soon as UTN is received by the amount sending bank, that bank informs the amount receiving bank and after that the receiver bank credits the amount in the account of the account holder to whom the amount has been sent. .

this process which is almost to completion 30 Minutes It takes a period of time, during which your RTGS Transaction is completed and the Fund is credited to the Beneficiary’s account.

Features of RTGS Transaction:

Here I am going to tell you about some features related to RTGS transaction, about which it is very important for you to know:

  • 1. Realtime online fund transfer is done in this
  • 2. It is mainly used for high value transactions
  • 3. It is very safe and secure
  • 4. It is very reliable because behind it rbi has a hand
  • 5. Immediate clearing is done in this
  • 6. With this the funds are credited on one-on-one basis
  • 7. Transactions are executed in this on individual and gross basis

What are the Fees and Charges of RTGS Transactions?

In this process, the recipient bank (the bank to which money is sent) does not have to bear any charge for RTGS transaction. But the sender (who sends the money), the bank imposes some charges on them for the transfer of money, which is something like this:

Amount RTGS Fee
Rs.2 lakh to Rs.5 lakh Rs.30 per transaction
Above Rs.5 lakh Rs.55 per transaction

Timings to RTGS

weekdays 9.00 am to 4.30 pm
Saturdays 9.00 am to 2.00 pm

For whom is RTGS really necessary?

If a person is doing daily big transactions then they mainly need RTGS. If seen, they are used more by businessmen because they have to do transactions of higher value several times a day related to their business, and such high value transactions can be done only through RTGS. But it is not limited only to them, but RTGS can also be used by common Investors or Person.

If ever a person has to transfer fund of INR 2,00,000 or more from one of his account to another account or to another person’s account, then he will have to use RTGS for fund transfer. You can also use RTGS to invest in Mutual Fund.

What is the main difference between RTGS and NEFT

Criteria NEFT RTGS
settlements Transactions are settled in batches Whereas here Transactions are settled individually
RTGS Timings Here settlement is done on hourly basis during bank working hours But here all the process is done on real time only.
Transaction Amount There is no minimum limit here but there is definitely a maximum limit. Whereas here the minimum limit is Rs.2 lakh and there is no upper ceiling.
value These are mainly done for lower and medium range transactions. Wherein they are used for higher value transactions

What is the difference between RTGS and NEFT?

In NEFT or National Electronic Fund Transfer, transactions are settled in batches, but RTGS transactions are settled individually.

What is the minimum and maximum limit of RTGS transactions?

Always remember that all RTGS transactions are mainly used for high value transactions. Whereas their minimum amount of RTGS transactions is Rs.2 lakh. And there is no maximum limit for this.

How long does it take for fund transfer and credit in RTGS?

Funds are often credited instantly. Whereas the bank imposes a time frame of 30 minutes to credit the money.

Does the recipient of the money get any confirmation message or acknowledgment once the money is sent to them?

Yes receiver receives a confirmation SMS once they have received the money.

If the account of the person sent to Karnawas is not credited, then does that transaction get reverse?

Yes. If the transfer of any tax money is not done, then automatically the transaction gets reverse, in this case the sender gets the money sent by him once again. If this does not happen in 24 hours or hours then you should contact your nearest bank branch.

Is RTGS facility available in all banks in India?

No. RTGS services are available in only a few RTGS-enabled banks in India.

What is Inter bank fund transfer?

When funds have to send money from one bank account to another bank account, it is called Inter bank fund transfer. Basically, money is sent from one bank to another through this.

Can an RTGS transaction be scheduled in advance?

How many days in advance can we schedule this transaction?

We can do this transaction 3 working days in advance.

Can we use RTGS to send money to foreign banks?

No. This service is available only in India and that too only with RTGS-enabled banks.

How to know whether our bank is RTGS-enabled or not?

For this, you have to visit the RBI website where you will get a comprehensive list of all the banks which are RTGS-enabled.

Can RTGS transfers be done on bank holidays and Sundays?

No. These services are available only on working days and that too during the working hours of the bank.

what did you learn today

I sincerely hope that I have What is RTGS (RTGS in Hindi)? Gave complete information about RTGS and I hope you guys have understood about RTGS.

I request all the readers that you should also share this information in your neighborhood, relatives and friends, so that there will be awareness among us and it will be beneficial for everyone. It has always been my endeavor that I always help my readers or readers from all sides, if you people have any kind of doubt, then you can feel free to ask me.

I will definitely try to solve those Doubts. you this article What is RTGS, How did you like it, do tell us by writing a comment so that we too get a chance to learn something from your thoughts and improve something.

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