How to do RTGS?

In order to ensure a smooth transition of funds, one has to first understand how to do RTGS transfer. Here are some tips on how to do RTGS fund transfers:

• Firstly you need to activate your internet banking facility. Contact your bank branch to do the activation
• Log on to the online web portal of the bank with the ID and password provided to you
• Go to your profile and select the option of the beneficiary
• Select RTGS from the inter-bank payment options available
• Select the option provided to add a beneficiary and provide the necessary details such as name, account number, address and IFSC code of the beneficiary
• Click the ‘accept Terms of Service (Terms & Conditions)’ button followed by ‘confirm’.
• A high-security password is sent to the mobile number as an additional security measure. Enter this password to authorize the beneficiary
• The beneficiary added is activated within a time ranging from 30 minutes to a few hours depending upon the bank and security measures. Once the beneficiary account is activated, the transfers can be done instantly
• To remit funds to the Inter-Bank Payee through RTGS / NEFT select the ‘Inter-Bank Transfer’ link in the ‘Payments/Transfers’ tab
• Select the Transaction Type – RTGS or NEFT
• The list of beneficiary accounts added is displayed
• Enter the amount and select the beneficiary to be credited from the list
• Click on ‘Accept Terms of Service (Terms & Conditions)’ and confirm

In case you face any problems, it is advisable to consult your bank and get a representative to explain to you how to use RTGS funds transfer in order to ensure that there are no mistakes.

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

• Saves time. Previously payments of a huge amount were made via demand draft, which could only be cleared in a period of three days. Now the same can be done within no time through RTGS
• Saves paper. Without any need for physical documentation, transfers of huge sums can be made instantaneously
• There is no threat of money being stolen or cheques being forged since all the process is done online.
• Huge sums of money can be transferred easily, making it easier for companies to run their business smoothly
• Helps companies manage their business capital in a much better way
• There are lesser chances of counter-party default
• This is in turn also ensures a better supplier-buyer relationship, as a huge sum can be transferred in one go and without any delay.

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 the case where the 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 the customers with an option to reach out to the branch manager if they are facing any issues with the RTGS services.

Q. What is RTGS payment method?
RTGS (Real-Time Gross Settlement) is a fund transfer payment method that allows the instantaneous transfer of money from one banking institution to another. Under this system, the funds transfer requests are processed in real-time, i.e. as soon as they are received from the remitting bank.

Q. How much time does it take for RTGS transfer?
RTGS payment system allows fund transfers in 30 minutes. The beneficiary added is activated within a time ranging from 30 minutes to a few hours depending upon the bank and security measures. Once the beneficiary account is activated, the transfers can be done instantly.

Q. What is RTGS limit?
The minimum amount for RTGS transfer is Rs.2 lakh. And there is no upper limit on RTGS transactions.

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

Q. Can RTGS be done within the same bank?
Yes, RTGS 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. Is RTGS chargeable?
RTGS transfers initiated online via the internet and/or mobile banking channels is not chargeable. However, RTGS done at the bank branch is charged with a nominal amount. The bracket of 2 to 5 lakhs carries a nominal charge of Rs. 25/- as existing charges for the branch. Similarly, the bracket of 5 lakh and above carries a charge of Rs.50 as existing charges for the branch.

Q. What are the disadvantages of RTGS?
The disadvantage of RTGS is that it doesn’t provide the customer to track the transaction.

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