As we move into the digital era, all our daily transactions have moved online, including the monetary ones. Money transfer from one bank to another has become far more convenient with the advent of technologies assisting in a smooth online money transfer from one banking institution to another. Systems operating under Inter-Bank Transfer, such as, NEFT and RTGS have made lives easier for those who prefer to make monetary transactions without having to physically visit a bank and yet have a secure and smooth transition in making and receiving payments. Both NEFT and RTGS are monitored by the Reserve Bank of India.
What is RTGS?
RTGS or Real Time Gross Settlement is a system where the funds transfer requests are processed in real-time, i.e. as soon as they are received from the remitting bank.
- Unlike in NEFT, the fund transfer instructions under RTGS are processed individually on an order basis
- So far, RTGS is the fastest and most secure means of funds transfer in India
- Through RTGS an individual can transfer funds from one bank to another within India on an immediate basis
- It is ideally used for high-value transactions only
- There is a minimum cap of Rupees two lakhs on the RTGS transactions. For any value below that, an individual will have to resort to NEFT
- Although almost every bank offers RTGS facility to its customers, RTGS services are not available in all the branches of every bank
- There are approximately 100,000 branches across India that offer RTGS services and anyone who is interested in availing it can check whether their branch offers it, either by asking the branch or checking the list available on the official website of RBI