What is RTGS?

'RTGS' stands for Real Time Gross Settlement. It is a fund transfer mechanism.

RTGS has increased the efficiency of banking operations tremendously. Being Real-time, RTGS is the fastest possible money transfer system.

Real-Time refers to the fact that the transactions are settled as soon as the information is processed. There is no waiting period in RTGS transfers.

The term 'Gross' refers to the fact that the transaction is settled on one to one basis without bunching with any other transaction

RTGS is meant for large trransactions. The minimum amount for RTGS transfer is Rs. 1 Lakh. There is no upper limit under RTGS transfers.

Typical time taken for an RTGS transfer:

The fund transfer between the remitting bank and the receiving bank is immediate. There is virtually no time lag in the trransfer between wo banks. However, the receiving bank may take up to two hours to credit the money to the beneficiary's account.