RTGS Full Form : Real-Time Gross Settlement

The RTGS mean system is the fastest possible interbank money transfer system for high-value transactions. It is typically used for transactions over INR 2 lakh. The RTGS system is maintained by the Reserve Bank of India (RBI).

The main advantage of the RTGS system is that it is a real-time system, which means that the funds are transferred immediately, and there is no risk of delayed or failed transactions. The other advantage of the RTGS system is that it is a gross settlement system, which means that each transaction is settled individually. This reduces the settlement risk, as compared to the net settlement system.

What is the Full Form of RTGS?

The full form of RTGS is Real Time Gross Settlement. It is a system used to electronically transfer funds from one bank to another. The transactions are settled in real-time, which means they are processed as soon as they are received. 

Features and Benefits of RTGS

The RTGS system is an electronic payment system that facilitates the transfer of funds between banks. The main features and benefits of RTGS are:

• RTGS is a real-time payment system, which means that funds are transferred immediately and can be used immediately.
• RTGS is a safe and secure way to transfer funds, as it uses a highly sophisticated and secure network.
• RTGS is a very efficient way to transfer funds, as it is a fast and reliable system.
• RTGS is available 24 hours a day, seven days a week, which makes it very convenient for users.

How Does RTGS Work?

The Real-Time Gross Settlement (RTGS) system is a Funds Transfer System where the transfer of money or securities takes place from one bank to another on a “real-time” and ” gross” basis. Settlement in “real-time” means transferring funds from one bank to another is completed immediately or nearly immediately. “Gross settlement” means the transaction is settled one-to-one without netting.

The RTGS system is used for high-value transactions. The minimum amount that can be transferred using RTGS is INR 2,00,000. There is no upper limit on the amount that can be transferred. In accordance with the notification released on December 14, 2020, RTGS can be done 24*7 and 365 days a.

The sender bank branch initiates an RTGS transaction by sending a message through the central banking system to the receiving bank branch. The message contains instructions on the amount and destination account. The receiving bank branch credits the destination account and informs the sender bank branch about the successful completion of the transaction. The sender bank branch then updates its records.

How to Make an RTGS Transaction?

The Reserve Bank of India (RBI) has introduced the Real Time Gross Settlement System (RTGS) to enable faster interbank funds transfers. The RTGS is a safe, secure and efficient way to transfer funds from one bank to another. Here’s how you can make an RTGS transaction:

Step 1: Sign in to your respective netbanking account.

Step 2: Fill in the beneficiary’s details

Step 3: Once the beneficiary has been added, you will receive a confirmation message on your registered mobile number

Step 4: Select the beneficiary’s account details under the ‘Fund Transfer’ tab.

Step 5: Make the transfer by entering the amount.

Step 6: Confirm your agreement to the terms and conditions and process the transfer.

Details Required To Make A RTGS Transfer

In order to make an RTGS transfer, you will need the following information. Be sure to have all the necessary information before you begin the process, as it will make the process much smoother.

• Amount to be remitted
• The account number to be debited
• Name of the beneficiary bank and branch
• The IFSC number of the receiving branch
• Name of the beneficiary customer
• Account number of the beneficiary customer
• Sender to receiver information, if any

Who is Eligible to Transfer Money Via RTGS from One Bank to Another?

The Reserve Bank of India has specified certain criteria for individuals who wish to transfer money via the Real Time Gross Settlement (RTGS) system from one bank to another. To be eligible for RTGS, the sender must have an account with a bank participating in the RTGS system. The sender must also have sufficient funds available in their account to cover the amount being transferred. The amount being transferred must also be within the specified limits of the Reserve Bank of India.

Major Banks Providing RTGS Facility

All banks must provide the RTGS facility to their customers from the designated branches. The list of major banks providing the RTGS facility is given below:

• State Bank of India
• Punjab National Bank
• HDFC Bank
•  ICICI Bank
• Axis Bank

What is RTGS Transfer Limit?

RTGS is a real-time gross settlement system operated by the Reserve Bank of India. The RTGS transfer limit is set at INR 2 lakh per transaction. This limit is applicable to both interbank and intra-bank transactions. RTGS is a safe and secure way to transfer funds between banks and is available 24/7.

Chances of Failure of RTGS Fund Transfers

When the backup facilities are based on the same technologies as primary and secondary sites, there is an increased risk of failure of technical components in the RTGS system. In addition to cyber-attack and data corruption, RTGS can also be affected by hardware, software, and natural disasters.

Restrictions on RTGS Transactions

The Reserve Bank of India (RBI) has introduced certain transaction restrictions through the Real Time Gross Settlement (RTGS) system. Under the new rules, the minimum transaction amount must be INR 2,00,000, and there is no upper limit on the transactions.

Fees Applicable on RTGS Transactions

The RBI does not charge a processing fee for transfers made via RTGS. However, there is a service fee that the sender must pay. The beneficiary does not owe payments for inward transactions. RTGS charges are as follows:

Transaction Amount	Inward Transaction Service Fees	Outward Transaction Service Fees
INR 2,00,000 to INR 5,00,000	N/A	INR 24.50
INR 5,00,000 and above	N/A	INR 49.50

Time Taken For RTGS Settlement

As soon as the remitting bank transfers funds, the beneficiary bank will receive them in real-time. The beneficiary bank must credit the transaction to the beneficiary’s account within 30 minutes of receiving the fund transfer message.

How to Resolve Queries for RTGS Transfer?

You can approach your bank for assistance if you have any queries regarding the RTGS transfer. The customer care representative will be able to guide you through the process and help you resolve any issues that you may be facing. Alternatively, you can visit the RBI website for more information on RTGS transfers.