Real time gross settlement (RTGS) is one of the most convenient modes of making interbank money transfers in India. The transfer of funds occurs on continuous basis as per instructions received and so called as real time and as, the processing of instructions and settlement of funds, done on individual basis, known as gross settlement. The payment made through this route is considered final and irreversible as the settlement of funds occurs in RBI records. Majority of commercial banks have adopted this method of fund transfer. As many as 30472 branches are using RTGS services.

Essential information for making cash transaction through RTGS requires, following information to be produced to the bank by the remitting customer. The remitting customer should have his account with this bank.

1)    Amount to be remitted

2)    Remitting customers account number which has to be debited

3)    Name of the beneficiary bank

4)    Name of the beneficiary customer

5)    Account number of the beneficiary customer

6)    Sender to receiver information

7)    The IFSC Number of the receiving bank branch

Peculiar Features of RTGS

  1. Transaction Timing: RTGS services are available for its customers from morning 9 a.m-4.30 p. m on week days i: e, Monday to Friday. On Saturdays they are available from 9 a. m-1.30 p.m.
  2. Transaction Amount: RTGS allows a minimum transaction amount of Rs. 2lakh under both retail and corporate internet banking. However, maximum limit under retail internet banking is of Rs. 5lakh and that for corporate internet banking is of Rs. 50lakh for Vyapaar and Rs.500crore for Vistaar.
  3. Transaction Charges: The transaction charges differ with the amount to be transferred. Inward transaction is free of cost however, outward transaction made between Rs2lakh-5lakh cost no more than Rs.30 per transaction and for above Rs.5lakh it should not exceed Rs.55 per transaction.
  4. Fund Transfer: The fund transfer occurs on real time basis by the remitting bank to the beneficiary bank branch. The beneficiary bank has to compulsorily credit the beneficiary’ account within 2 hours of receiving the fund transfer message.
  5. Confirmation to the remitting customer: The remitting bank receives a message from RBI stating, money has been credited to the beneficiary bank. On the basis of this information the remitting bank can inform the remitting customer about the credit held successfully. Some remitting banks providing internet facility can send an E-mail or SMS to the remitting customer once the amount gets credited to the beneficiary account.
  6. Unsuccessful transaction: Many a time’s funds cannot be credited to the beneficiary account immediately, due to any reason. Under such a circumstances the receiving bank have to mandatorily return back the amount to the remitting bank within 2 hours and the returned amount is credited to the remitting customers account.

In case of non-credit or delay in credit to the beneficiary account, you can contact your bank. Still then, if the issue remains unsolved you can lodge complain to the Customer Service Department of RBI at:-

The Chief General Manager,
Reserve Bank of India,
Customer Service Department,
1st Floor, Amar Building, Fort,
Mumbai – 400 001.

Both the receiving and remitting bank is to be RTGS enabled for making any RTGS transaction. The list is available at RTGS enabled branches. One can avail all information from RBI website http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB1110.xls

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