What is the full form of RTGS?
The full form of RTGS is Real-Time Gross Settlement. It is a simple payment system that allows instant transfer of money in real-time and without delays. To put it simply, it is the continuous settlement of funds on an order by order basis. In other words, your request to transfer or settle funds takes place immediately, rather than being lined up for later clearance as in the case of other modes of fund transfer.
Information required to transfer money using RTGS method:
- The amount of money to be transferred
- Account number of payee, which is to be debited
- Name of the beneficiary bank and branch
- Name of the beneficiary
- Beneficiary bank account number
- The IFSC code of the receiving branch
RTGS method can be used to transfer a large number of funds instantly on a real-time basis by retail as well as corporate account holders.
What are RTGS timings and limits?
The Reserve Bank of India has allowed fund transfer round the clock i.e. RTGS is available 24*7 for 365 days to encourage digital payments. The RTGS system was primarily designed for large value transactions. Hence, the minimum amount for RTGS for retail customers is Rs. 2 lakh and there is no upper limit.
What are the service charges for RTGS transactions?
The Reserve Bank of India (RBI) has removed service charges for RTGS transactions initiated through online modes (Mobile banking and internet banking). Transactions initiated at banks may differ from bank to bank.
Benefits of RTGS
- RTGS fund transfer system is monitored by the Reserve Bank of India, hence it is a secure and safe method of funding.
- RTGS transactions are carried out on a real-time basis so there is no room for lag.
- Customers can send money to any part of India through RTGS without any hassle.
- Online RTGS transfer can be done from the comfort of home.
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