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What is RTGS ?


The 'RTGS' stands for Real Time Gross Settlement, which can be defined real-time settlement of funds at the time of instructions  are received rather than at some later time. The payments are final and irrevocable.

Minimum amount for RTGS transactions:

The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 lakh.

RTGS Timings

Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within 30 minutes of receiving the funds transfer message.

What is the maximum time for returning of RTGS transactions, which could not be credited to beneficiary's account?

If the funds are not credited to the beneficiary's account for any reason like account does not exist, account frozen etc., the funds will be returned to the originating bank within one hour or before the end of the RTGS Business day, whichever is earlier.

How Real Time Gross Settlement (RTGS) is different from National Electronics Funds Transfer System (NEFT)?

NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place with all transactions received till the particular cut-off time. These transactions are netted (payable and receivables) in NEFT whereas in RTGS the transactions are settled individually. Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time Contrary to this, in the RTGS transactions are processed continuously throughout the RTGS business hours.