What is RTGS: Full Form, Benefits, Charges & Timings

The RTGS full form in banking is Real-Time Gross Settlement. RTGS is a way to transfer money from one bank account to another instantly, without waiting. If you have ever wondered what is RTGS and when you should use it, think of situations where speed really matters. Maybe a property payment. Maybe a business transfer. RTGS is designed exactly for such high-value, urgent transactions.

Keep reading to learn more on RTGS full form, RTGS limit and how to fill RTGS form.

What is RTGS?

The RTGS full form is Real-Time Gross Settlement. RTGS is a payment system introduced by the Reserve Bank of India in 2004 to make large fund transfers faster and safer. The RTGS meaning is quite simple. ‘Real time’ means the money moves as soon as you place the request. ‘Gross settlement’ means each transfer is processed on its own, not grouped with other transactions. 

As per RBI rules, banks are required to process RTGS transfers within 30 minutes. And since December 2020, you can use RTGS whenever you need to. It works 24×7, even on weekends and bank holidays. So you are no longer restricted by banking hours.

RTGS Features 

These RTGS features explain why people use it for large transfers:

• Money moves almost immediately
• Each transaction is handled one by one
• Best suited for high-value payments
• Regulated by the RBI, so it is secure
• No maximum limit set by the RBI

How Real-Time Gross Settlement (RTGS) Works?

Here is what usually happens when you make an RTGS transfer.

• You initiate the transfer using net banking, mobile banking or by visiting a bank branch
• Your bank checks whether you have a sufficient balance and valid details
• The transfer request is routed through the RBI’s RTGS system
• The amount is credited directly to the beneficiary’s bank account
• The transaction is settled in real time

RTGS Example

Let’s say you need to send ₹8 lakhs for a property payment. With RTGS, the entire amount reaches the seller quickly, without worrying about any RTGS limit or long waiting times. This is why RTGS is commonly used for property and business payments. For certain high-value business transactions, banks may also ask for a Legal Entity Identifier (LEI) to verify the companies involved.

How to Do RTGS Online?

Just follow these steps to make online RTGS transfers:

Step 1: Just log in to your bank’s net banking or mobile app using your usual credentials

Step 2: Then, add the beneficiary by entering the correct account number and IFSC code

Step 3: Choose RTGS as the transfer option

Step 4: Finally, enter the amount you want to send and confirm the transfer

How to Do RTGS Offline?

You can follow these simple steps to make RTGS transactions offline: 

Step 1: Visit your bank branch

Step 2: Fill out the RTGS form

Step 3: Submit the form along with cash or RTGS cheque

Step 4: The bank processes the transfer for you

The RTGS form asks for basic details like your account number, the beneficiary’s name, IFSC code and the amount. It’s always a good idea to take a moment to double-check everything before you submit it.

How to Fill a Cheque for RTGS Transactions?

Here’s how you can fill an RTGS cheque:

Step 1: Fill in the RTGS form

Step 2: Write the date clearly on the cheque

Step 3: Mention the beneficiary’s name

Step 4: Write the amount in numbers and words

Step 5: Sign the RTGS cheque

Step 6: Submit it at the bank counter

RTGS Transaction Fees in Banking in India

Receiving money through RTGS is free. Charges apply only when you are sending money. The RBI has even capped these charges, but the exact amount may vary slightly from bank to bank. 

Transfer amount	Maximum charges
₹2 lakhs to ₹5 lakhs	₹25 plus GST
Above ₹5 lakhs	₹50 plus GST

Limitations of RTGS

RTGS is fast and reliable, but here are a few things to keep in mind:

• You cannot transfer less than ₹2 lakhs, as this is the minimum RTGS limit
• Banks may set their own maximum RTGS limits for online transfers
• Once processed, the transaction cannot be reversed
• Charges may apply for outward transfers

RTGS vs NEFT

Feature	RTGS	NEFT
Speed	Instant transfer	Processed in batches
Minimum amount	₹2 lakhs	No minimum limit
Upper limit	No RBI cap	Depends on the bank
Availability	Available 24×7	Available 24×7

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FAQs on RTGS

Can RTGS be cancelled?

No. Once an RTGS transfer is processed, it cannot be cancelled or reversed.

What types of transactions are typically done using RTGS?

RTGS is commonly used for property purchases, business payments, vendor settlements and other high-value transfers.

Can RTGS be done without an RTGS cheque?

Yes. You can use net banking or mobile banking to do RTGS without submitting a cheque.