Payment Systems – RTGS

The acronym ‘RTGS’ stands for Real Time Gross Settlement. Real Time means that the processing of instructions start at same time when they are received and not at some later time. Gross settlement means that the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis).

• Not every bank can transfer or receive money through RTGS system. For this the bank should be RTGS enabled. A list of RTGS enabled bank branches is available on RBI website, and also you can obtain this information from your bank.
• So this is in contrast with the NEFT system in which settlements take place in batches.
• In contrast with NEFT system, there is a minimum limit of Rs 2,00,000 to be transferred through RTGS. Though there is no maximum limit.
• Banks charge Processing Charges / Service Charges for RTGS transaction.

Details you need to give while requesting for RTGS transfer:

• Your bank account number with bank, so that bank can debit amount from that account.
• The amount to be remitted.
• Beneficiary’s name.
• Beneficiary’s bank’s and branch’s name (Bank branch should be NEFT enabled).
• Beneficiary’s account number.
• IFS code of bank branch of beneficiary. (IFS Code of all bank branches is available on RBI website)