What is RTGS? All You Need To Know About RTGS.
Earlier in December 2019, the RBI opened the NEFT system (National Electronic Fund Transfer System) 24 hours a day. Now the Reserve Bank of India (RBI) has announced that the facility of RTGS (immediate settlement of payments) in India for transfer of large amount will be started round the clock from December 2020. This will help efforts to integrate the Indian financial market with global markets”.
RTGS is open only from 7 am to 6 pm on all business days of banks (except second and fourth Saturdays). RBI has said that the availability of RTGS round the clock will help in the ongoing efforts to coordinate the Indian financial market with the global market and in the development of international financial centers in India. From July 2019, the Reserve Bank had stopped charging fees on the transfer of funds through NEFT and RTGS. This step was taken to promote digital transactions in the country. Quick transfer of large amount is done through RTGS whereas NEFT is used to send money up to two lakh rupees.
So, What RTGS is and why is it important to know about it?
Now gone are the days when we had to stand in a long line by going to the bank and also had to wait a lot of time to transfer our Challan or simple money. There is no need to waste your precious time when we can do all these things from our home.
There are many modern banking solutions available like Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), and Immediate Payment Service (IMPS). All of these services make the payment process 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).
This is a very popular electronic fund transfer method in India. Under this money is sent in real-time. According to the Reserve Bank of India (RBI), the term ‘real-time’ refers that it is processing all the instructions simultaneously as they are receiving and not in the later time of processing. And the second term ‘Gross Settlement’ means that the settlement of funds transfer instructions is individual (on an instruction-by-instruction basis).
Details Required for RTGS.
To transfer money through this, you should have bank details of a beneficiary like –
- Bank Name.
- Bank Account Number.
- Branch Name.
- IFSC Code.
Features of RTGS System.
- If you have a bank account then you can also avail of this service.
- If you do RTGS then the minimum amount is 2 lakh rupees, there is no limit to the maximum amount.
- Large amounts are mainly chosen for transactions in RTGS.
- In this, if the transaction is not done due to any reason, the money will be sent back to your account.
- This service is not free, you will have to pay charges to the bank. The charges for doing RTGS vary according to different banks.
- Here settlement of transactions takes place individually.
- The fund instantly gets credit without any waiting period.
- Only interbank transactions can be done through this.
- It is completely secure as it is operated under the supervision of the Reserve Bank of India.
Thus it will become more helpful if the RTGS is made available for 24 hours.