RTGS – Real-Time Gross Settlement Fund Transfer

The Reserve Bank of India (RBI) has removed all charges on RTGS transactions initiated online via the internet and/or mobile banking apps. However, most of the nationalized and private banks in India charge the below-mentioned nominal fees to process a transaction at the bank branch:

Note: Banks may charge a lower rate but the banks cannot charge more than the rates capped by the RBI.

The below-mentioned table explains the difference between RTGS, NEFT, IMPS, and UPI:

If you are making use of the online RTGS facility, then here are the steps you need to follow:

• You will need to have your user ID and password ready
• Go to your bank’s official website and login to the net banking account
• Once you log in, add the details of the beneficiary if you have not added the details already
• Go to the option for RTGS transactions and enter the details of the beneficiary and the payment to be processed to make the transaction
• Submit the application and the funds will be transferred to the beneficiary instantly.

One can send money through RTGS directly from the bank as well. Here are the steps that you need to follow:

• Fill out the RTGS form at the bank
• Mention the date and write the amount in both, numbers and words
• Write the cheque details, including the serial number correctly
• Input your details and the details of the beneficiary carefully
• You will also need the IFSC of the beneficiary’s account
• Also, provide a cheque leaf from your account with the beneficiary details written at the back and relevant details at the front

Once you have filled all the details correctly, you need to submit the form to a representative who will verify the details and process your request.

Transaction Limit of RTGS

RTGS service is mainly meant to carry out high-value transactions. The minimum amount that you can remit via RTGS is Rs. 2,00,000 with no upper or maximum ceiling.

Getting to understand how to do RTGSfunds transfer is helpful in the long run as everyone prefers instant money transfers, especially for big payments. In fact, this service has several benefits. Some of them are as under:

• It is a safe and secure system of transferring funds.
• There is no upper capping on transactions/transfers of funds via RTGS.
• The service is available round the clock 24×7 and 365 days and funds are transferred to the beneficiary in real-time.
• There is no need of using a demand draft or a cheque at the time of processing RTGS.
• The remitter doesn’t have to visit the bank to make a fund transfer.
• The charges on RTGS have been capped by RBI. However, it may vary from bank to bank.
• These transactions have legal backing.
• The remitter can initiate transactions from anywhere or at any time.
• There is no threat of funds being stolen.

Before you can initiate an effective RTGS transfer there are certain basic requirements that you need to meet. The customer will have to furnish the following information to the bank:

• Remittance Amount
• Account details of the remitting customer for debiting the sum
• 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

In case where funds have not been transferred successfully, the remitting customer will be informed of the same and the amount will be credited back to his account.

All banks provide customers with an option to reach out to the branch manager if they are facing any issues with the RTGS services.

The RTGS form also contains the terms and conditions related to the RTGS money transfer. Some of the common terms and conditions mentioned in almost all the bank RTGS forms are:

• RBI guidelines in relation to RTGS will be strictly followed by the bank.
• The amount will be paid only in the bank account mentioned in the form.
• The applicable charges and taxes on the RTGS money transfer will be deducted from the remitter’s bank account.
• If the beneficiary’s details are mentioned incorrectly in the form, then the bank will not be liable for the consequences which arise due to the erroneous information.
• If it is a combined NEFT and RTGS form, then the remitter must tick the method through which the transfer needs to be made.
• If the remitter misses ticking the required mode, then the bank will decide whether to perform fund transfer through NEFT or RTGS; if the amount is less than Rs. 2 lakh then it will be transferred through NEFT. If the amount is more than Rs. 2 lakh, it will, by default, be paid through RTGS.
• The banks suggest payers go through the RTGS form before making the money transfer.

Q. Can RTGS be cancelled?
Ans. No, once initiated, RTGS payments cannot be cancelled.

Q. Can RTGS be done within the same bank?
Ans. Yes, Real-Time Gross Settlement allows people to send or receive money between two bank accounts of the same bank or two different banks through mobile or/and internet banking.

Q. What are the disadvantages of RTGS?
Ans. The disadvantage of Real-Time Gross Settlement is that it doesn’t allow the remitter to transfer funds below Rs. 2 lakh.

Q. What happens if RTGS transfer takes place in the wrong account?
Ans. It is not possible to get the funds back once transferred via RTGS. If the funds are transferred to the wrong account, in that case, the funds will be reversed to the account from which the transaction has been initiated.

Q. Are the payments under RTGS final and irreversible?
Ans. Yes, the payments are final and irreversible considering the settlement of funds takes place in the book of Reserve Bank of India.

Q. How is processing RTGS different from NEFT?
Ans. In NEFT the transactions received up to a particular time are processed in batches whereas, in RTGS, the transactions are processed continuously one by one throughout the day.

Q. Can we get compensation for the delay in returning the payment?
Ans. If there is a delay in returning the failed payment, the originating customer is eligible to get compensation at the current repo rate plus 2%.

Q. What is UTR number in RTGS?
Ans. Unique Transaction Reference number is a 22-character code used to uniquely identify transaction in RTGS system.