by 5paisa Research Team Last Updated: 2023-05-31T18:17:32+05:30
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The full form of RTGS is Real-time Gross Settlement. It is a form of fund transfer system that is quick, simple and hassle-free. One can easily transfer funds or even securities using this system from one bank to another. This can be done on a gross settlement basis or even in real time. 

Real-time here indicates that the funds are transferred immediately by the sender. Similarly, gross settlement signifies any instructions that relate to the fund transfer that transpire on a one-on-one note. Learn more below. 

What Is RTGS?

RTGS, as mentioned above, is an instant system of money transfer. The minimum amount to initiate this form of transfer is Rs. 2 Lakhs and above. This transfer is among the safest and most secure payment modes among others. It also features legal backing for better security. 

With the RTGS system of fund or securities transfer, you no longer need to visit the bank branch. You also need not write a cheque. The waiting period is also cut short dramatically as the money transfer with this system is fairly simple and instant. 

Note that the timing of RTGS for high-value transactions varies from one bank branch to another. So, you may have to acquire details accordingly. 

Content Defining What Is RTGS

RTGS is a system of instant money transfers that can occur from one bank to another seamlessly. It takes place in real-time and on a gross settlement basis. The best part about using this type of system is that one can use it from anywhere and everywhere. Thus, its accessibility is high-end, and the services are state-of-the-art. 

This transfer can occur both offline and online depending upon preference, requirement and urgency. 

Keep in mind that all these details are accurate and up-to-date. This helps the system to make transfers of money and securities with minimal hindrance. If you may please, a financial advisor can also help you learn more about RTGS meaning. So, in case you need it, do not hesitate to consult one. 

How Real-time Gross Settlement (RTGS) Works?

What do you wonder when you hear the term real-time? It naturally means that the settlement occurs on an instant basis. Simply put, the transaction occurs right at the moment after the sender sends it to the other bank. 

On the contrary, when you talk about gross settlement, it conveys that transactions are managed and administered individually. This means diverse transactions aren’t grouped with one another in this process. 

Once you’ve understood the RTGS full form in banking, it gets easier to understand its concept. This type of system is typically utilized in the type of bank transfers where the cash is of high value. That is why they require immediate clearing with seamlessness and accuracy. Thankfully, they deliver on that. But once these transactions have been processed, they are not eligible for a reversal. 

Real-time gross settlement helps reduce any form of risk that is attached to the process of settlement. That is why they are also called delivery risks. As such, this type of process mitigates any form of bank transfer risks. 


What Is The Use Of RTGS?

If you have understood the RTGS full form in banking, it is now time to move on to its uses. Anyone who wishes to transfer a lump sum amount through a bank can use this process to make it happen. 

Since it occurs immediately, RTGS fraud prevention is low. Today, many industries, including corporate and retail sectors, leverage its implications for their business success. 

Here are certain important characteristics of RTGS Process That Might Help You:

●    A safe and secure payment mode. 
●    A highly credible source of money transfer. 
●    Best for high-value transfers of money. 
●    RTGS charges are reliable on the amount of money being transferred. 
●    Both online and offline transfers are available under this roof. 
●    Real-time online transfers are easier than ever. 
●    The timing for this transfer differs from bank to bank. 


Benefits Of Real-time Gross Settlement (RTGS)

Learning about RTGS advantages and disadvantages can help you make more mindful money transfers through this system. Here’s some guidance on it for the same. 

●    Since this bank transfer system is leveraged by central banks all across the globe, the risks of transferring lump sum money can be curbed on time. 
●    This type of fund transfer can also safeguard your comprehensive financial data. It does this by reducing the potential of making the system vulnerable to hackers. So, if you want to learn about what is RTGS in detail and minimize the risk of fund transfers from hackers, this can be useful. 
●    With real-time gross settlement, the time window for such significant information to be available to hackers reduces automatically. 

How To Make An RTGS Transaction?

Via Netbanking 

●    Register for online RTGS solutions using the net banking portal. 
●    Enter the beneficiary details. 
●    Then, add the amount you wish to transfer. 
●    After this, authenticate the system of payment. 

Via Bank 

●    Use a gross settlement real-time system to transfer money offline. For this, visit the bank branch in the discussion. 
●    Once there, fill out the RTGS form with all the information of your beneficiary accurately listed.
●    Pay the amount using a cheque system or cash. 

What Details Are Required For RTGS?

Make sure all details for RTGS are provided accurately. Check again to make sure there is no room for errors. This process helps minimize any hassles while making payments and for the other party to receive them instantly. 

●    Bank account number 
●    The branch of the bank 
●    Beneficiary’s bank branch 
●    Beneficiary’s IFSC code 
●    The amount of money that needs to be transferred through the system.

Are There Any Opportunities For RTGS Transfer Failures?

Yes. There are certain minute cases of RTGS transfer failures that might occur due to complexities. Certain reasons for this type of failure in RTGS transfer process are: 

●    Incorrect or inaccurate account numbers. 
●    Insufficient funds in the account of the sender.
●    Server or technical mishaps and errors. 

Note that when this RTGS transaction limit failure occurs due to certain technical glitches, the money is most likely to be refunded back to your account within one day at maximum. 

What To Note When Using RTGS?

●    Make sure you own a present bank account. This will help validate the request for a fund transfer. 
●    Also, check all the details thoroughly before making bank transfers. This helps reduce complexities in RTGS charges and fees transfer. 

RTGS Charges

Online transfer 

●    According to the RBI, service charges have been eliminated from this type of transaction. 

Offline Transfer

●    For a single Payment of RTGS, the maximum charge limit is Rs. 55. 
●    Service charges should not exceed Rs. 30 for an Rs. 2 lakhs outward transaction. 
●    It cannot exceed Rs. 55 when the amount is Rs. 5 lakhs or more. 

RTGS Transaction Limit

Only high-value transactions can be processed using this transfer system. This means any transfer only beyond the predetermined amount limit is possible. 

List of Major Banks Providing NEFT Facility

Bank Name Timings For NEFT NEFT Timings For Saturday
  (Mon To Fri)  
    8:00 am to 6:30pm
HDFC Bank 8:00 am to 6:30pm  
    9:00 am to 6:45 pm
Bank Of Baroda 9:00 am to 6:45 pm  
Union Bank   8:00 am to 6:30 pm
  8:00 am to 6:30 pm  
Punjab National Bank   8:00 am to 1:00 pm
  8:00 am to 7:00 pm  
State Bank Of India    
    8:00 am to 1:00 pm
ICICI Bank 8:00 am to 7:00 pm  
    8:00 am to 6:30 pm
  8:00 am to 6:30 pm  



How To Resolve Queries For RTGS Transfer?

●    Connect with the bank’s customer care service team. 
●    State your query on their email address and wait for them to resolve it.
●    Use their chatbot system for instant solutions. 
●    NEFT money transfer is also a great way to transfer money seamlessly during this time. So, you can learn more about RTGS Vs NEFT in your potential bank. 

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Frequently Asked Questions

The amount, in this case, will bounce back into the account from where it was being transferred to the beneficiary. This may happen over a period of an hour. It may even take a maximum of one day, but it will surely get refunded. 

Yes. A minimum amount of Rs. 2 Lakhs and above is necessary for RTGS transaction status. If you wish to know more about the same, you can connect with your bank branch right away for assistance. 

When you are looking for a real-time money transfer, using RTGS payment mode can be a wise call. Also, make sure your minimum amount is Rs. 2 Lakhs and above when you consider this type of system for money transfers. 

It is known for immediate bank transfers. However, it takes a maximum of 30 minutes to transfer money into another account. 

Since the maximum amount varies from one bank to another, it is best to consult your bank branch for the same. But remember that the minimum amount to consider is Rs. 2 Lakhs and above.