What is RTGS and how does it work?
Do you know what is RTGS (Full form of RTGS) and why it is important to keep information about it? Nowadays we can do all the things of banking sitting at home. Now the days are gone when we had to go to the bank and stand in a long line and also have to wait for a long time to transfer our Challan or simple money. You can still do this but why waste your valuable time when we can do all these things from our home.
Nowadays there are many modern banking solutions available such as Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), and Immediate Payment Service (IMPS) which make these payment processes very easy. With such services, we can do our transactions quickly, easily and safely.
So the banking solution we will know about today is RTGS (Real Time Gross Settlement System), it is a very popular electronic fund transfer method in India.
Under this, money is sent in real-time and on an individual basis. With the help of RTGS, you can send more money simultaneously from one bank account to another. So in today’s article, you will get complete information about what is RTGS and how can we use it, then without delay let’s start and know what is RTGS.
What is RTGS (Full form of RTGS)
Full form of RTGS Real Time Gross Settlement. It is a continuous, real-time process of funds settlement where funds are sent from one account to another on an individual and order-by-order basis without netting.
If I say it in simple language, then this is such an online banking method where money is sent from one bank to another without any waiting period.
, according to the Reserve Bank of India (RBI), the term ‘Real Time’ refers to processing all these instructions simultaneously. Happens as they are being received and not released to be processed at a later time.
And the second term ‘Gross Settlement’ means that the settlement of funds transfer instructions is done individually (on an instruction-by-instruction basis).
Since this system is maintained by RBI, all settlements of funds are entered in their books or records, due to which RTGS payments are final and irrevocable which means it cannot be done again.
Therefore RTGS is the fastest way to transfer money through secure banking channels. You can transfer a minimum of Rs 2,00,000 through RTGS and there is no maximum limit, you can transfer as many funds as you want until your bank branch sets a limit for you.
So this shows that the use of RTGS is suitable for more money businesses.
Apart from this, a very important advantage over other fund transfer methods is that it eliminates the settlement risks of all interbank transfers and is very secure as it is operated by RBI.
This question comes to people’s minds that how they can transfer money with the help of RTGS. So the answer is very simple we can do this in two ways, one is an online method and the other is an offline method. So I am going to inform you about both these methods.
For Online Method RTGS For
Online Method, you can do RTGS by using Internet Banking. Under this, the person to whom you want to transfer funds has to be added to your account as Payee or Beneficiary Customer.
Where you have to provide all the information about that customer and after that, the bank checks the details of that beneficiary. For this work, the bank takes about 12-24 hours to check the details of the beneficiary.
When the checking process is completely completed by the bank, then the beneficiary customer is activated by the bank after which you can transfer funds to that beneficiary customer.
To add any person to your Bank Account as Beneficiary or Payee, you must have the following information related to Beneficiary Customer, otherwise, you can not add it as Beneficiary through your Internet Banking A/c:-
- Bank and Bank Branch Name
- Name and Account Number
- of their Bank IFSC Code (Indian Financial System Code)
Offline Method For RTGS
- if you do not know how to apply online then you can apply it in offline also but for this You have to fill a slip by going to the Bank Branch physically, in the same way as you normally fill the form while doing Check Deposit or NEFT.
- As soon as you deposit by filling the instruction slip, the sending bank feeds the information filled in that instruction slip to its Central Processing System.
- As soon as it is fed on the Information Central Processing System, it is sent to RBI.
- After this, RBI completes all the transactions by processing and debiting the amount (money) from the account of the sending bank and credits that amount to the account of the bank to which RTGS has been done.
- After this whole process, a Unique Transaction Number (UTN) is generated, which RBI sends to the bank sending the amount. Sender Bank receiving this UTN means that your fund has just been transferred.
- As soon as the UTN is received by the Amount Sending Bank, that Bank gives its information to the Amount Receiver Bank and after that the Receiver Bank credits that Amount to the Account Holder to whom Amount has been sent. .
This process takes a period of about 30 minutes to complete, during this only your RTGS Transaction is completed and credited to the Fund Beneficiary’s Account.
Features of RTGS Transaction:
Here I am going to tell you about some features related to RTGS transactions, about which you need to know:
- 1. Realtime online fund transfer is done in this
- 2. It is mainly used for high-value transactions.is
- very safe and secure 4. It is
- is behind
- RBICredit is done in one basis
- 7. In this Transactions are executed in individual and gross basis
What are the Fees and Charges of RTGS Transactions In
this process there is no charge to the recipient bank (the bank to which the money is sent) For RTGS transaction. But the sender (who sends money), the bank charges them some charges for the transfer of money which are as follows:
|lakh to Rs.5 lakh||Rs.30 per transaction|
|Above Rs.5 lakhRs.55||per transaction|
doing RTGS up to
|Weekdays||9.00 am to 4.30 pm|
|Saturdays||9.00 am to 2.00 pm|
is RTGS necessary?
If a person is doing daily large transactions then they mainly need RTGS. If seen, they are used more by businessmen because they have to do transactions of higher value many times throughout the day related to their business, and such high value transactions can be done only through RTGS. But it is not limited only to them, but RTGS can also be used by common investors or individuals.
If ever a person has to transfer funds of INR 2,00,000 or more from one of his accounts to another account or in the account of any other people, then he will have to use RTGS for fund transfer. You can also use RTGS to invest in Mutual Funds.
What is the main difference between RTGS and NEFT
|Settlements||Transactions are settled in batches||individually|
|whereas||here||are settled on|
|time||.used||for higher value transactions,|
what is the difference between RTGS and NEFT?
An NEFT or National Electronic Fund Transfer, transactions are settled in batches, but RTGS transactions are settled individually.
What is the minimum and maximum limit of RTGS transactions?
Always remember this thing all RTGS transactions are mainly used for large value transactions. At the same time, the minimum amount of their RTGS transactions is Rs.2 lakh. And it has no maximum limit.
How long does it take for fund transfer and credit in RTGS?
Often funds get credited instantly. Whereas the bank imposes a 30 minute time frame to credit the money.
Does the recipient of the money get any confirmation message or acknowledgment once the money is sent to them?
Yes the SMS receiver receives a confirmation once they have received the money.
If the credit is not credited to the account of the person sent to the exile, then does that transaction get reversed?
Yes. If the transfer of any tax money is not possible, then automatically the transaction is reversed, in this case the sender gets the money sent by him once again. If this does not happen within 24 hours or hours then you should contact your nearest bank branch.
Is the RTGS facility available in all banks in India?
No. RTGS services are available in only a few RTGS-enabled banks in India.
What is Interbank fund transfer?
When funds have to send money from one bank account to another bank account, it is called Inter bank fund transfer. Basically, with this money is sent from one bank to another.
Can an RTGS transaction be scheduled in advance?
How many days in advance can we schedule this transaction?
We can do this transaction 3 working days in advance in advance.
Can we use RTGS to send to foreign banks (abroad)?
No. This service is available only in India and that too with RTGS-enabled banks.
How to know whether our bank is RTGS-enabled or not?
For this, you will have to visit the RBI website where you will get a comprehensive list of banks that are RTGS-enabled.
Can RTGS transfers be done during bank holidays and Sundays?
No. These services are available only on working days, that too during the working hours of the bank.
What did you learn today
, I have full hope that I have told you what is RTGS (RTGS in Hindi)? Gave complete information about RTGS and I hope you guys have understood about RTGS.
I request all of you readers that you also share this information with your neighbours, relatives, your friends so that there will be awareness among us and everyone will benefit a lot from it. I need your cooperation so that I can pass on more new information to you guys.
It has always been my endeavour that I should always help my readers or readers from all sides, if you people have any doubt of any kind, then you can ask me without any hesitation. I will definitely try to solve those doubts. You read this article What is RTGS? How did you feel, do tell us by writing a comment so that we too get a chance to learn something from your thoughts and improve something.