The Online Banking System in India has evolved over the years to benefit the customers in several ways. There have been active reforms made by the prime governing body, that is, the Reserve Bank of India which focuses on quick & easy fund transfer within the country. Real-Time Gross Settlement (RTGS) system was introduced by RBI in March 2004. However, the implementation of this scheme was only restricted to four bank branches in order to check its convenience with the customers. With positive results, the customer-based transaction facility was spread across different banks throughout the nation. Presently, there are almost 96 banks and 14 Primary Dealers along with the Reserve Bank of India, which fall under the RTGS scheme. Let us find out what is RTGS transfer.
What is RTGS transfer?
RTGS is basically a well-framed fund transfer system which allows money to be transferred from one bank to another on a “real-time” basis. The RTGS system focuses on a swift fund settlement process with almost no scope for a waiting period.
The RTGS system has grown popular among people because the money is transferred immediately. Mobile banking is known to be the primary medium for RTGS fund transfers. Did you know RTGS service can also be availed by visiting the bank? Offline RTGS transfer option is offered by a number of banks in the country. This option is useful to customers who aren’t able to access internet banking. One simply has to fill the RTGS form available at any of the bank branches and verify it from the bank official, who would later process the fund transfer clearance using the online mode. Now that you know what is RTGS transfer, you can do it online easily.
Important Points related to RTGS Fund Transfer
Whether you are availing the RTGS scheme via the online or offline channel, there are certain important details which should be kept ready with the remitter at the time of placing a fund transfer request. Some of the necessary details include:
- Amount to be remitted
- Remitting customer’s account number that would be debited
- Beneficiary’s bank and branch
- IFSC Code of the receiving branch
- Beneficiary name
- Beneficiary account number
- Sender to receiver information, if any
What is RTGS and NEFT Transfer Difference?
Both NEFT and RTGS fall under the electronic fund transfer system in India. However, NEFT is slightly different from RTGS in terms of transfer duration and other factors. NEFT functions on a Deferred Net Settlement (DNS) basis that settles transactions in specific batches. Further, under NEFT, transactions are netted (payable and receivable); however, with RTGS the transactions are processed individually. To be precise, NEFT settlements are pushed in half-hourly batches designated for weekdays and working Saturdays. Any transaction requested after a designated settlement time will be forwarded to the next designated settlement time. On the other hand, RTGS transactions are quicker and are processed continuously during the RTGS business hours.
What is RTGS Transfer Fee?
The Reserve Bank of India (RBI) has directed the banks to not charge any service charges for RTGS transfers initiated online via the internet and/or mobile banking portals. However, when initiated at the branch, RTGS is chargeable at the hands of the bank.
Many people aren’t aware of the fact that RBI hasn’t actually set any fixed charges for RTGS fund transfer across the country. Hence, the banks have been provided with the authority to charge the customers for accessing RTGS fund transfer service. For RTGS, the charges fall between Rs. 5 to Rs. 50 depending on the transferred amount.
- Inward transactions –No charge is imposed.
- Outward transactions-
Rs. 2 lakh to Rs. 5 lakh- Maximum Rs. 30 per transaction | Above Rs. 5 lakh– Maximum Rs. 55 per transaction
RTGS Transfer FAQs
Let us find out the answers to some of the frequently asked questions (FAQs) related to RTGS-
Is there any minimum/maximum fund amount condition for RTGS transactions? If yes, what is the RTGS transfer limit?
The RTGS system is basically preferred for large value transactions. Also, the minimum amount to be remitted via RTGS is 2 lakh, with no upper limit for RTGS transactions.
What is the time taken for completing funds transfer from one account to another using RTGS?
Usually, the beneficiary branches are likely to receive the funds in real-time once the funds are transferred through the remitting bank. Furthermore, the beneficiary bank needs to credit the beneficiary’s account within 30 minutes after getting the fund transfer message.
Would the remitting customer be provided with an acknowledgement regarding the money credited to the beneficiary’s account?
Yes. The remitting bank is offered a message from the Reserve Bank about the fund being credited to the receiving bank. As per this aspect, the remitting bank can advise the remitting customer via SMS that amount has been credited to the beneficiary’s bank.
Does the remitting customer get the money back if it is not transferred to the beneficiary’s account?
Yes. A transferred fund would be returned to the originating RTGS member account within one hour of the receipt of the payment or before the end of the RTGS Business day, in case there is any sort of glitch in the transfer process to the beneficiary’s bank. The different reasons linked to unsuccessful fund transfer include a frozen account, the account does not exist, etc.
What is RTGS transfer service window opening duration?
It is important to know that the RTGS service window for customer’s transactions is available on a round-the-clock basis i.e. 24x7x365. Earlier the window remained open from 9:00 am to 4:30 pm from Monday to Friday. On working Saturdays the duration ranged from 9.00 hours to 14:00 hours.