RTGS - Real Time Gross Settlement

RTGS or the full form Real Time Gross Settlement is a fund transfer method which is done on a real-time basis and without any delays. This wire transfer method allows the money sent by the remitter to immediately reach the beneficiary/payee as and when the request is received. The full form of RTGS includes Gross Settlement which means transactions are carried out on an individual basis and not in a batch-wise system.

It is one of the fastest interbank money transfer method available through banking channels in India. RTGS transactions require the beneficiary bank to credit the recipient’s account within 30 minutes of receiving the funds’ transfer message.

When money is transferred using RTGS, one needs the following information:

  • The amount that needs to be transferred
  • Name of the beneficiary/payee
  • Name of the bank of the beneficiary/payee
  • IFSC code of the payee/beneficiary
  • Account number of the payee/beneficiary

The RTGS payment method is maintained by the Reserve Bank of India and is, therefore, one of the popular and secure methods of transferring funds.

How to do RTGS? - Step-wise guide to RTGS Process

In order to transfer money through RTGS, you must first add a beneficiary. Thereafter, you can make a funds transfer.

The steps to add a beneficiary to your account are:

  • Step-1: Log into your respective bank’s netbanking account by entering the username and password.
  • Step-2: Go to Funds Transfer tab.
  • Step-3: Select “Add a beneficiary” and then click on “Select Beneficiary Type” to select “Transfer to Another Bank”.
  • Step-4: Enter the beneficiary account details including name, bank name, IFSC code and account number.
  • Step-4: Enter the beneficiary account details including name, bank name, IFSC code and account number.
  • Step-5: Click on “Add” and confirm.
  • Step-6: Wait for the confirmation message.

Once you add the beneficiary, follow these simple steps to transfer money using RTGS.

  • Step-1: Go to the Funds Transfer tab after logging to your Netbanking account.
  • Step-2: Select RTGS option and then choose the beneficiary/payee you wish to send the money.
  • Step-3: Add the amount that is to be transferred.
  • Step-4: Review all the documents before submission of the request. The funds will be credited within 30 minutes of the request.

Benefits of RTGS

RTGS is a popular fund transfer method in India and comes with a host of benefits. The benefits of using RTGS as your method of transferring funds are:

  • Safe and secure- As RTGS is maintained by the Reserve Bank of India, it is a risk-free method of funds.
  • Speed- Since transactions are carried out on a real-time basis, there is no room for delay.
  • Wider boundaries – There are no geographical limitations in India to use RTGS.
  • Convenient - Transfer of funds from your home or office.

RTGS Limit

Limit Amount
Minimum ₹2 lakhs
Maximum No upper ceiling through the branch. Some banks though have a limit through Net Banking.

RTGS Timings

Transaction Timings RTGS
Monday to Saturday (Except 2nd and 4th Saturday) 8:00 AM to 4:30 PM

RTGS Service Charges

Amount Service Charge
Inward transactions(within the bank) Free, no charge to be levied
₹2 lakh to ₹5 lakh ₹30 per transaction
Above 5 lakhs ₹55 per transaction

Difference between NEFT and RTGS

Both RTGS and NEFT are funds transfer methods that allow individuals to transfer funds between banks. NEFT or National Electronic Funds Transfer is an electronic transfer from one bank to another. The major difference between NEFT and RTGS are the timings of settlement. RTGS is based on a gross settlement which means transactions are carried out on an individual basis whereas NEFT is carried out in batches.

Criteria NEFT RTGS
Settlements Transactions are carried out in batches Transactions are carried out in individual batches
Transaction Timings Settled on an hourly basis during bank working hours Processed on a real-time basis
Transaction Amount Limit No minimum limit No maximum limit
Value Meant for low to medium level transactions Meant for high-value transactions( more than ₹2 lakhs)

NEFT vs. RTGS vs. IMPS

If you know, there are three popular ways of funds transfer methods in India- NEFT, RTGS and IMPS. Although these three methods focus on transferring funds, each method is slightly different from each other. While NEFT and RTGS are managed by the Reserve Bank of India, IMPS is managed by the National Payments Corporation of India(NPCI).

NEFT is focussed on transferring funds that are low in value. Moreover, the fund transfer is not done immediately but in batches. Other features of NEFT services are:

  • Not available on bank holidays and Sundays
  • No minimum amount
  • Maximum limit subject to bank policies

RTGS is carried out on a real-time basis, that is being settled as and when the request is done. The banks have the liberty to decide their own upper limit as there is no upper limit set by the RBI.

IMPS or Immediate Payment Service is a fund transfer method which is available 24*7. All IMPS transactions can be carried out 365 days in a year from anywhere at any time.

Criteria NEFT RTGS IMPS
Settlements Transactions on an hourly basis Transactions on an individual basis but at bank working hours Transactions on an individual basis at any time
Maintained by RBI RBI NPCI
Timings 8:00 AM
to 6:30 PM
8:00 AM
to 4:30 PM
24x7
Transaction limit No minimum limit No maximum limit subject to bank No minimum limit

RTGS FAQs

Q. What is RTGS payment method?

A. RTGS payment method or Real Time Gross Settlement is a way of fund transfer that allows the money sent by the remitter to immediately reach the beneficiary/payee as and when the request is received. It is done on a real-time basis and the beneficiary receives the money within the 30 minutes of the request.

Q. What is the difference between NEFT and RTGS?

A. The major difference between NEFT and RTGS are the settlement timings. RTGS transactions are carried on an individual basis whereas NEFT is processed in batches.

Q. What is the difference between NEFT and RTGS and IMPS?

A. NEFT, RTGS and IMPS are three methods focussing on fund transfer funds, each method is slightly different from each other. While NEFT and RTGS are managed by the Reserve Bank of India, IMPS is managed by the National Payments Corporation of India(NPCI). Moreover, the transactions using NEFT can be carried between 8:30 am- 6:30 pm, RTGS can be done between 8:00 am-4:30 pm and IMPS can be done 24x7.

Q. What is the minimum amount for RTGS?

A. The minimum amount that can be transferred using RTGS is ₹2 lakhs. However, there is no upper limit in RTGS transactions.

Q. How much time does it take to send money through RTGS?

A. RTGS transactions allow the beneficiary bank to credit the recipient’s account within 30 minutes of receiving the request.

Q. Can we do RTGS on Sunday?

A. RTGS facility can be utilised only on working days that too during the working hours of the bank.

Q. Can we do RTGS without Cheque?

A. Yes, a cheque is mandatory if RTGS transaction from the branch. However, using electronic media like internet banking or mobile app does not require any cheque.

Q. How much time will it take for RTGS transfer?

A. The transfer is ideally credited within a 30-minute time frame.

Q. What is the timing of NEFT and RTGS transactions?

A. NEFT transactions can be carried out between 8:30 am- 6:30 pm whereas RTGS can be used between 8:00 am- 4:30pm. Both can be used during the working hours of the bank.

Q. Can RTGS be done through net banking?

A. Yes, RTGS can be done using electronic methods including net banking or mobile app.

Q. Can we do RTGS on Saturday?

A. Yes, RTGS can be done on Saturdays between 8:00 am-4:30 pm during the working hours of the bank.

Q. What are the details required for RTGS transfer?

A. The details required for RTGS transfer are the amount that needs to be transferred, the name of the beneficiary, name of the bank, IFSC code and the account number of the beneficiary.

Q. In case funds are not credited to the payee/beneficiary account due to an error, will the remitter get back the money?

A. If the funds are not credited to payee due to an error, the funds are automatically transferred to the remitter’s bank account within 24 hours. If this does not happen, then you should contact your bank’s customer care representative.

Q. Is it possible to schedule an RTGS transaction in advance?

A. Yes, RTGS transactions can be scheduled in advance.

Q. How much in advance can I schedule an RTGS transaction?

A. An RTGS transaction can be scheduled 3 days in advance.

Q. Do all banks in India have RTGS facility?

A. No. RTGS facility can be availed only in RTGS-enabled banks.

Q. How do I know if my bank is RTGS-enabled?

A. You can visit the RBI website to get a comprehensive list of all the banks that are RTGS-enabled.

Q. Will the sender/remitter receive any confirmation message or acknowledgement once the money is credited to the beneficiary/payee account?

A. Yes, a confirmation message is ideally sent to the remitter. The beneficiary receives a normal message stating the amount is credited.

Q. Can I use RTGS to send money to foreign banks?

A. Unfortunately, RTGS can be used only in India with RTGS-enabled banks.

Q. What is interbank fund transfer?

A. When funds are transferred from one bank to another bank account, it is known as interbank funds transfer. In other words, it means sending money to other bank accounts.