What is RTGS?
RTGS or Real Time Gross Settlement is a non-revocable instant transaction that is immediately performed as soon as you hit the confirmation. One reason, it has been named gross is the payment is final without any batch wise system. The system is used for high value transaction that need immediate clearance. People prefer National Payment system over RTGS, but it is needed as there are certain countries where it is the only way to get money cleared within a day. A country’s central bank, generaly, performs such transactions and the cost of transaction is high.
Points to know about RTGS
- The minimum amount for an RTGS transaction is INR 2 lac. While there is no upper limit.
- Just like other net banking options, RTGS would need the same details as bank account number of the beneficiary, name, branch, IFSC code etc.
- You can schedule RTGS payments in advance.
- RBI maintains RTGS system in India.
- In India, RTGS charges are reasonable between Rs 25 to 55, and this method of transfer is safe and quickest of all.
- The system applies only to banks which have RTGS enabled, so for foreign transactions, this is not a plausible option.
To transfer amount using RTGS, you need to
- Log on to your bank’s website using your username and password.
- Select fund transfer options on home.
- Choose RTGS and enter the details of the beneficiary.
- Review and submit.
What for should you use RTGS?
- Immediate one-on-one clearing basis.
- When a transaction has to be made on a holiday.
- Amount is huge.