If you want to transfer funds to anyone across the country, you have a few options available to do that. However, if you want to transfer huge amount, your options are quite limited. One such option is RTGS or the Real Time Gross Settlement. It is a fund transfer mechanism that allows for real-time processing and settlement of requests for fund transfers. The system ensures that the receiver has access to the funds almost instantly, rather than after a certain duration as is the case with some other payment modes. The settlement of requests takes place on instructions basis and not on a batch clearing basis. The Reserve Bank of India keeps a track of all the transfers and thus all the successful transfers are irreversible.
Operating Window and Limits
As per the Reserve Bank of India (RBI), individuals can place requests for RTGS 24×7 from Monday to Sunday. This change has been made to help customers adopt digital payments.
- Transfer of funds through RTGS can now be made round-the-clock, for large value transactions.
- Earlier, RTGS operating window was available on weekdays starting from 9 AM until 4:30 PM.
- The RBI provides these timings for the transactions. However, the actual timings provided by the banks might differ; depending on the timings they are open for their customers.
- RTGS is primarily designed for fund transfers of large value. As per the rules and regulations set by the Reserve Bank of India, you cannot initiate an RTGS request for transactions below Rs.2 lakh.
- There are no upper limit restrictions set on RTGS based fund transfers.
RTGS allows you to transfer funds to any individual in any part of the country if the pre-requisites are met. The fund transfer mechanism has some charges that you must pay to initiate an RTGS request.
- There are no charges if you are at the receiving end of RTGS fund transfer.
- No charges are applied on transfers initiated online via internet banking and/or mobile banking.
- For all the fund transfer requests between Rs.2 Lakh and Rs.5 Lakh, banks can charge their customers a maximum of Rs.30 per transaction.
- For transactions above Rs.5 Lakh RBI sets a cap of Rs.55 per transaction.
To initiate an RTGS request, you need to furnish certain details to your bank or branch. These details include the name of the beneficiary, the amount to be remitted, account number of the beneficiary, account number of the sender, contact information if needed and the IFSC code.
For online RTGS services, websites usually have IFSC locator so that you can find the same. Else you can visit the website of RBI to get hold of the list of branches and their IFSC codes. Once you fill up an RTGS form with these details, you are good to go with the RTGS request. Also, you cannot place a request for RTGS from any bank or branch in the country. The branch should be part of the RTGS network or should be RTGS enabled to process the request. The RBI website contains the list of all the banks that are enabled with RTGS facilities.
Individuals having bank accounts can easily place a request for RTGS payment, either by visiting a branch or via net banking. A lot of banks are providing their customers with online RTGS services, to make transfer hassle-free and easier. You can still choose to walk into a branch and place a request for RTGS.
The usual time for transfer and Acknowledgement
The RTGS arrangement is in place to ensure that the fund transfers are close to instant. Sometimes it might take a few minutes, depending on certain factors. RBI mandates the branch on the receivers ends to credit the amount to the account within 30 minutes of receiving the funds. Most of the banks these days provide their customer with notifications via SMS or emails when it comes to RTGS. Thus, you can expect the bank to send you a notification when the amount is credited to the account of the beneficiary.
In case of urgent requirements, one might want to see the status of the RTGS request. Some banks offer the ability to track the status of RTGS via their website or net banking facility. Alternatively, you can reach out to the customer support of the bank to get any details regarding the same.
Are there any chances of failures?
RTGS being merely a different mode of fund transfer, there are some situations where the request might fail. Inactive receiver account or frozen receiver account is the most common culprits behind RTGS requests failing. In such a situation, the amount will be credited back to the remitting account and from there to the account of the sender. This usually takes place within an hour of the request failing or by the end of the RTGS working day. In case of failures, the refunds happen seamlessly and you don’t have to worry about anything. But in extreme cases where the beneficiary does not receive the funds within the stipulated time, you can escalate the matter. You should reach out to your branch or bank as the first step of redressal.
How is it different from NEFT?
NEFT and RTGS are both payment modes, which make the life of customers easier. You can use the NEFT for all smaller transactions, whereas the RTGS should be used only for large value transactions. The NEFT system works on an accumulation and disbursement system, where all the requests are queued up. They are then cleared on predefined settlement slots. NEFT operates on an hourly basis whereas RTGS operates on an instruction basis. Both the services have different charges as well. Thus, depending on your requirements, you can pick either of them. For large volume instant transfers to an individual within the country, RTGS should be the preferred choice.