Payments and settlements in India are governed by the Payment and Settlement Systems Act of 2007. In India, Real-Time Gross Settlement is one of the fastest ways to move funds between banks using online banking. The funds are transferred between the two accounts in 30 minutes. It is one of the most common ways to settle payments in the country.
In light of the recent rise in SMEs, real-time gross settlement is considered the safest and most feasible way to pay or receive money. It can be used to send money both online and offline. Still, a lot of companies need to be made aware of the services. This is why we have arranged the RTGS service-related details for you in this section.
What is RTGS Services?
The Reserve Bank of India started real-time gross settlement (RTGS) in 2004. It is a mechanism that continuously transmits money in real time. In this case, “real-time” means that instructions are carried out without delay and as soon as they are received. Similarly, the gross settlement means that each order for a transfer of funds will be handled independently.
This method of money transmission is designed mainly for high-value transactions. All banks accredited by the Reserve Bank of India offer the RTGS service. Over 1 lakh bank branches across the country can use RTGS.
What Advantages and Features Come with Choosing Real-Time Gross Settlement?
The characteristics and advantages of real-time gross settlement fund transmission are:
- It is a risk-free and secure method of money transfer
- When sending RTGS transfers through a bank branch, there is no upper limit
- You can send money in real-time to the beneficiary account
- Every day is a transfer day for money
- There is no need for a physical check or demand draft
- There is no chance that physical instruments will be lost or stolen, and beneficiaries will not be the victims of fraud
- Using online banking, the transaction can be started from the user’s home or place of employment
- There are nominal costs or fees associated with the transfer of funds
- Transactions using RTGS have legal support
What Details are Required to Complete an RTGS Transfer?
When starting a real-time gross settlement transfer, the following information must be provided:
- Sending account information
- Name of the branch and beneficiary bank
- Name of the client who will benefit
- Account number for the beneficiary
- To be transferred sum
- Notes or remarks if any
- Bank’s IFSC code for receiving payments
What are RTGS Expansion Options There?
Real-time gross settlement can be conducted in one of two ways:
- Web-based banking: Many banks provide the option to add beneficiaries online using internet banking. You can transfer money to the recipient after successfully adding beneficiaries. Individuals and businesses can make RTGS execution with online banking accounts.
- Branch: To start a financial transfer, go to the closest bank branch and fill out the RTGS form.
How can I make an Online RTGS Fund Transfer?
Add beneficiaries for a real-time gross settlement transaction by following these steps:
- To get to your bank’s online net banking service, enter your customer ID and password
- Go to the “Funds Transfer” section
- Select “Add Beneficiary” from the menu
- Give the recipient account information, including the account number, IFSC, bank name, and branch name
- Select “Add” and then click “Add Again.”
- You might need to enter your credentials to authenticate the addition
- After the beneficiary has been added, you will receive a confirmation message
You can begin transferring money using the following steps after adding a beneficiary:
- Open your bank’s internet banking page and select the “Funds Transfer” tab
- Choose the beneficiary’s account number
- Enter the transferable amount
- Check the box next to “I accept the terms and conditions” to complete the action
- Review the information, then press the “Confirm” button to finish the procedure
Is There any Timeframe for RTGS Execution?
The transaction timeframes for real-time gross settlement transfers have undergone a few changes. The most recent update, August 26, 2019, says that RTGS transactions can be done between 7 a.m. and 6 p.m. The hours for interbank transactions are 7 a.m. to 7:45 p.m. You can find out the exact timeframe by checking with your bank.
What are the RTGS Transaction Thresholds?
Real-time gross settlement transfers start at a minimum of Rs. Two lakhs. It is typically Rs 25 lakh, though banks may have different thresholds. When you transfer money through a bank branch, there is no cap on the higher amount. Instead, there might be a cap if you make the transfer using internet banking.
Which Bank Provides the Best RTGS Services?
It is a simple, rapid, and effective way to transfer money from one account to another. You can choose HDFC Bank for its easy availability. Any branch of the bank can offer the service, and all banks approved by the RBI do. RTGS can be performed not only in their department but also through their bank application. The RTGS service can be availed in the approved timeframe by paying a nominal fee.
