RTGS FUND TRANSFER

RTGS FUND TRANSFER MEANS

Real Time Gross Settlement

RTGS Means REAL TIME GROSS SETTLEMENT

RTGS fund transfer means the transfer of funds from bank account to bank account on the basis of real time individually in the order of the time basis. Real time means the time of transfer of the funds between bank accounts, the transfer will be initiated at the time of transfer order is given. The transfer settlement is carried down individually.

The RTGS transfer is carried down through the Reserve Bank of India and the transaction is final and irreversible once it completed. So the customers and the bank employees should take utmost care on the RTGS transaction.

 The account number of the beneficiary (Beneficiary means the person who get the benefit from the transaction, one who receives the money through transaction), IFSC code of the beneficiary bank, and the other details should be accurate and complete in the RTGS transaction.

RTGS Limit per Day

 The Minimum limit of the RTGS transaction is rupees 2 lakh and the maximum limit of the RTGS transfer is rupees 10 lakh per day. Basically the RTGS transactions are meant for the large amount transactions.

 These limits are for the retail banking which means for the normal citizens. There is changes in the limit for RTGS transactions for institutions and corporate.

RTGS transfer - Credit time

The Real Time Gross Settlement is the mode of transaction to transfer the funds as soon as possible. The RTGS transfer will be completed to the beneficiary’s bank in real time basis as soon as the transaction completed. 

Then the beneficiary’s bank will credit the fund in the respective account within time from half an hour to two hours which differs banks to banks.

If RTGS couldn’t complete

There may be situations like the beneficiaries account is frozen or the mismatch of account number, IFSC Code or Banks etc. In this situation the RTGS transactions could not be completed. The sender’s account will be debited already at the time of initiating the RTGS. We will become tensed because of losing money without getting the beneficiaries.

Don’t worries, if the transactions couldn’t do because of these problems, the debited amount will be credited before the RTGS Business day closes.

RTGS and NEFT

The NEFT is carried down on a group basis according to it settlement time and the RTGS is carried down in the real time basis. The timings of NEFT are fixed as 48 settlements in a day with half an hour intervals. 

The transaction instruction orders initiated during the cut off time will be queued and at the time of settlement, the action will be triggered automatically. In RTGS, each transaction are taken as separately and settled on the time of transaction itself.

NEFT and RTGS are developed to reduce the time taken for the transactions among the banks. And it is very helpful to transfer the funds among different banks and different accounts.

 

This helps the public to make more banking transactions and the financial transactions will became more transparent to TAX authorities. The main aim of developing these innovations in banking technology is to reduce the time taken for the transactions and promote online transactions.  I personally used the NEFT and RTGS servies of icici bank, online sbi, federal bank, south Indian bank, axis bank etc.