The full form of RTGS is Real Time Gross Settlement. RTGS is maintained by RBI (Reserve Bank of India) and used for high-value transactions from one bank account to another on a real time and one-to-one basis. As per RBI’s mandate, all RTGS -driven transactions have to be cleared within a maximum of 30 minutes upon receiving the transfer request. Point to note – the minimum amount for RTGS transfer is capped at Rs.2 lakh.
Features of RTGS
Transactions processed via RTGS happen on a real-time and one-to-one basis
RTGS is typically used for high-value transactions
You need to provide details like amount to be transferred, bank account number, name of beneficiary, bank branch, beneficiary’s IFSC and beneficiary’s bank branch
RTGS transfers can be done via online and offline process
RTGS Charges and Timings
The following charges are applicable on Real Time Gross Settlement transfers:
Type of Transaction
Outward Transactions for Amount of Rs.2 lakh – Rs.5 lakh
Not more than Rs.25
Outward Transactions for Amount above Rs.5 lakh
Not more than Rs.50
Banks can charge RTGS service fees lower than the above charges as mandated by the RBI.
RTGS is regulated by RBI and facilitates safe and secure money transfer
RTGS services can be accessed 24/7 throughout the year
Minimal chances of fraud
Transactions can be initiated from anywhere via net banking
No geographical limitations within India
Disadvantages of RTGS
However, RTGS has a couple of drawbacks. Listed below are some of the disadvantages of RTGS:
You cannot transfer funds below Rs.2 lakh
Your transaction won’t be processed if your don’t provide beneficiary’s name, bank account number, account type, bank name, and IFSC Code
Money transferred via RTGS cannot be revoked
RBI or Reserve Bank of India processes RTGS (full form – Real Time Gross Settlement) requests almost instantly. Though the minimum amount for RTGS transactions is capped at Rs.2 lakh, there is no such mandate for upper limit. Also, since RTGS transfers fall under RBI’s purview, money transfers done via RTGS are extremely secure.
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