RTGS Timings, Fund Transfer & Limits, How to do RTGS?

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    RTGS

    RTGS – What is RTGS

    We’re familiar with the term RTGS. But most of us don’t know the full form of RTGS. Let’s start with the full form that is Real-Time Gross Settlement. With the help of RTGS, one can easily settle for payments in the recipient’s bank on an instant basis. The recipient doesn’t have to wait for long for the payment. RTGS services are irreversible once the payment is processed.

    What is RTGS?

    The real-time gross settlement is an operation with the help of which high-value inter-bank transactions are performed. RTGS transactions are such transactions that are done on the spot with full clearance. The transaction is done by the central bank of India.

    With the help of RTGS, you can turn down the overall risk. As most of the settlements are done on an instant basis throughout the day. When we talk about RTGS we know that it is different from National Electronic Funds Transfer (NEFT). In NEFT, all the settlements are done in batches. Therefore, the overall tariff involved in the real-time gross transferring of funds might invoke higher costs to their customers.

    RTGS Timings

     

    RTGS transactions days Timings
    Monday to Saturday but except 2nd and 4th Saturday 8:00 am to 4:30 pm

    Nowadays, RTGS can be done by the customers from 8:00 am to 4:30 pm on all working days of a week. But it excludes the second and fourth Saturdays of every month. 

    RTGS Fund Transfer & Limits

    Under Retail Internet Banking: 

    Type of transaction Minimum value Maximum value
    RTGS Rs. 2 lakhs Rs. 10 lakhs
    NEFT No minimum value Rs. 10 lakhs

    Under Corporate Internet Banking:

    Type of transaction Minimum value Maximum value
    RTGS Rs. 2 lakhs Rs. 10 lakhs to 2000 crores(depending on the type)
    NEFT No minimum value Rs. 10 lakhs to 2000 crores(depending on the type)

    How to do RTGS? 

    Let’s follow these steps carefully to do RTGS. To perform fund or money transfer through RTGS, first, we need to add a beneficiary. Thereafter, it will assist you in doing funds transfer.

    The step-by-step procedure to combine a beneficiary to your account is:

    • Step 1: Start by logging into your account by entering your username and password to your corresponding net banking account.
    • Step 2: Then, open the Funds Transfer tab.
    • Step 3: Here, you need to select the “Add a beneficiary” option and then press on “Select Beneficiary Type” which will help you to select the “Transfer to Another Bank Account” option.
    • Step 4: After that, enter the beneficiary account details which include the user’s name, bank name, and IFSC code and account number.
    • Step 5: Check your beneficiary that you don’t make an error.
    • Step 6: Then, hit on the “Add” button to confirm.
    • Step 7: Lastly, you need to wait for receiving a confirmation message.

    Once you’re done adding all the beneficiary details you just have to follow these steps to transfer funds or money using RTGS.

    • Step 1: You need to go to the Funds Transferring tab once you login into your Net banking account.
    • Step 2: Then, choose the RTGS option and select the beneficiary or payee option for sending money.
    • Step 3: Enter the amount that you’re willing to transfer.
    • Step 4: In the end, you need to review all the documents carefully before you submit the request. And the funds would be credited to your account within 30 minutes of the requested time.

    Benefits of RTGS

    We all know that RTGS is one of the most popular funds or money transferring methods in India which comes along with many advantages. Now, let’s have a look at the benefits of using RTGS as a means of fund transfer.

    • Secure and safe: RTGS settlements are done by the central bank of India i.e. the Reserve Bank of India. So, it is a risk-free method of fund transferring.
    • Speed: RTGS transactions are done on a real-time basis. So, there is no chance of delay.
    • Wider boundaries: The best part about RTGS in India is that there are no geographical limitations.
    • Convenient: Easy transfers of funds from anywhere like home or office.

    Difference between NEFT and RTGS

    Both NEFT and RTGS are fund transferring methods that permit individuals in transferring money or funds in between banks. NEFT stands for National Electronic Funds Transfer which is a process in which electronic fund is transferred from one bank to another. The main difference between NEFT and RTGS is the timings of settlements that are done. As we know that RTGS is based on the gross settlement in which the transactions are carried on an individual basis whereas in NEFT it is performed in batches.

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    Importance of Real-Time Gross Settlement 

    We are aware that real-time gross settlement is initiated by the central bank of India. Thus, where RBI is involved then there is minimum risk involved in high-value transactions. Even though there are banks and financial institutions involved so there is a requirement of high-level security that will safeguard customer’s personal information and funds. Thus, there are fewer threats each day.

    Therefore, we can conclude that the existent of the RTGS process has provided users with much-needed security that helps them in performing safe and secure transactions. In India, you can transfer funds above Rs 2 lakhs only through real-time gross transfer.

    Some queries related to RTGS:

    Q: Can we do RTGS from any other branch?

    The answer is ‘No’. Both RTGS and NEFT services can be enabled only from a specific bank and its branches across the country.

    Q: Is a cheque important for RTGS?

    RTGS transactions or fund transfer has minimum amount. RTGS can be done on all days on a 24 x 7 x 365 basis. It functions as a real-time transferring of funds in the beneficiary account mentioned. For that users don’t need any physical cheque or a demand draft for it.

    Q: Can RTGS do offline?

    Both NEFT and RTGS transactions are possible offline. All you need to do is visit the nearest branch of your bank. 

    Q: Does RTGS work on Sunday?

    According to the current rules, fund transfers cannot be done on Sundays. 

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