RTGS stands for Real Time Gross Settlement system which can be described as a transfer system wherein the transfer of money takes place from one bank to any other bank on a “real time” and on a gross basis.
‘Real Time’ means the processing of instructions at the time they are received and ‘Gross Settlement’ means that the settlement of funds transfer instructions occurs on a one-to-one basis.
In RTGS, the transactions are processed continuously on a one-to-one basis throughout the RTGS business hours. RGTS is most used for high-value transactions and is managed by the Reserve Bank of India. In India, there are more than 110,000 RTGS enabled bank branches.
There are two modes by which customers can avail RTGS service
- Online, through mobile and internet banking
- Offline by depositing cash at RTGS enabled branches
Following are the details required for both online and offline transactions through RTGS
- Amount to be remitted
- Account number
- Name of the beneficiary bank and branch
- The IFSC code of the receiving branch
- Name and account number of the beneficiary