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RTGS: Full Form, Limits and Charges

Last Updated : 16 Jan, 2024
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What is RTGS?

RTGS is a real-time and secure money transfer system through which we can transfer money 24×7, even on bank and public holidays as well. RTGS or Real Time Gross Settlement is a funds transfer service or a method for instant money transfer launched by RBI in 2004. It is used for high-value transactions. Being a real-time funds transfer service, the funds are instantly transferred to the beneficiary without any delay, unlike NEFT. It has made it very convenient to send and receive money from anywhere and anytime.


RTGS is an acronym for Real Time Gross Settlement. RTGS is used by people and banks themselves for high-value transactions which need to be settled immediately. This is achieved by eliminating the role of intermediaries in the transfer process. RTGS also forms the base for transactions done using IMPS as the IMPS transactions are finally settled between the banks using RTGS only. Unlike IMPS, which settles the payments in 3 cycles per day, RTGS payment settlement is a continuous process.

Features of RTGS

The following are the features of RTGS:

1. Real-time and Gross Settlement: RTGS transfers the funds in real time. This means that as soon as the sender completes, the transaction, the funds are credited to the receiver’s account. Gross settlement means that all the RTGS transactions are settled immediately, unlike other modes of transfer where the payments are settled in a cycle.

2. Very Less Downtime: RTGS generally operates throughout the day and is down only for 1 hour per day due to cutoff. This ensures that a person can transfer the funds to anyone, anytime.

3. Secure and Safe: RTGS is protected by various security mechanisms such as encryption, firewalls, etc., and the details of the sender and receiver are completely safe. Also, it is a government service, and the liability lies with the government in case of any failure of the transaction.

4. Finality of Settlement: The transaction done through RTGS is irrevocable. This helps to avoid counterparty financial risks.

5. Centralised Controlling Authority: RTGS is maintained and operated by the central banking authority of India, which is the Reserve Bank of India (RBI).

Why do you need RTGS?

RTGS is required as other modes of transfer, such as the NEFT, IMPS, and UPI do not allow a transfer of more than a certain amount and have a maximum limit attached to them. However, RTGS has no maximum limit and any amount of funds can be transferred which makes it very convenient for the users. Also, the settlement through RTGS happens in real-time. RTGS is also very transparent and helps a user to monitor and track the status of transactions online. Moreover, RTGS is highly reliable and secure which provides an additional sense of satisfaction to the users. RTGS is also available at most of the bank branches across the country. Thus, it is very easy and convenient to use and is preferred by users.

Pre-Requisites of RTGS

In order to initiate an RTGS transaction, the person who is initiating the transfer needs to meet certain prerequisites. These are:

1. Active mobile banking or internet banking: The sender must have a bank account enabled with internet banking or mobile banking so that he can initiate the transfer from the funds transfer option in the app or bank website.

2. Name of the receiver’s bank and branch: It is mandatory to mention the bank name and branch of the bank to which the transaction is being made.

3. Name of the beneficiary: The person who is intended to receive the funds is called a beneficiary. It is desired to enter the name of the beneficiary as in his/her bank account.

4. Account number of the beneficiary: It is the most important part of the details. Account number should always be entered carefully, as there is no option to reverse the transaction if the funds are sent to the wrong account.

5. IFSC code of beneficiary’s bank: The IFSC code of a bank helps to identify the bank and its branch. Usually, the bank details of the receiver are automatically updated on the transfer page when the IFSC code of a particular bank is entered. It also helps to ensure that the funds are being transferred to the right bank and branch.

6. Amount to be transferred: The amount of funds that a person wants to send to the beneficiary is also required. It should also be entered carefully.

7. Remarks or comments (not mandatory): The sender can mention some comments or remarks, such as the purpose of sending the funds or any message, etc.

RTGS Timings

RTGS is not restricted by the timings. It can be done anytime and anywhere, 24 x 7 round the clock, even on bank and public holidays, except the time between 11:30 PM to 12:30 AM due to cut-off. Thus, RTGS provides an easy way to transfer funds even if the bank is closed. However, RTGS may be affected by the server issues of the bank or maintenance activities, and usually, an appropriate message is shown to the user, in such cases on the funds transfer page.

Benefits of RTGS

The following are the benefits of RTGS:

1. High Value Transactions: RTGS has no maximum limit, and thus it can be used for transferring any amount greater than 2 lakhs. This is really beneficial for large enterprises and businesses who transact in lakhs and crores.

2. Better Cash Flow Management: A business can have immediate access to funds through RTGS and can manage its cash flow more effectively, which helps in liquidity management and financial planning in a business.

3. No Intermediaries: RTGS involves no intermediaries and eliminates unnecessary charges. It also helps to maintain the confidentiality of the user information.

4. Low Transfer Charges: RTGS involves a very low transfer charge of not exceeding ₹50. This amount is negligible as compared to the ease and convenience it offers to the person.

5. Schedule a Transaction: RTGS also allows us to schedule a transaction a few days in advance. This ensures that all the payments and transfers are completed in time without any delay or last-minute rush.

Limits of RTGS

RTGS was made for high-valued transactions. Thus, it cannot be used for payments below ₹2 lacs. In such cases, a person has to use other modes of transfer such as IMPS, NEFT or UPI. Thus, RTGS does not have any maximum limit for the funds transfer, but the minimum amount to transfer an RTGS transaction is ₹2 lakhs.

Charges for RTGS

RTGS transactions are free from any charges if done using online modes. However, if a person completes an RTGS transaction at a bank branch, then a charge of a maximum ₹50 is applicable on each transaction, depending upon the transaction amount. The charges may also vary from bank to bank depending on the type of account a person holds with the bank. Sometimes, banks provide RTGS transfer facilities to their customers at reduced prices. The charges also incur an additional GST amount of 18% on the base charges. It is always advisable to check the charges on the bank’s website before making an RTGS transfer. The following table summarises the RTGS charges:

Type of Transaction

Charges (in ₹) excluding tax

Inward Transaction


Online Transaction


Outward Transaction (2 lakh – 5 lakh)

not exceeding 25

Outward Transaction (above 5 lakhs)

not exceeding 50

Frequently Asked Questions

Q1. When was RTGS launched?

RTGS was launched in 2004.

Q2. What is the downtime of RTGS?

RTGS has a downtime of 1 hour from 11:30 PM to 12:30 AM.

Q3. What is the maximum limit for RTGS transactions?

There is no maximum limit for an RTGS transaction.

Q4. What are the charges applicable on inward RTGS transactions?

Inward RTGS transactions do not have any charges applicable.

Q5. What is the full form of RTGS?

Full form of RTGS is Real Time Gross Settlement.

Q6. State two benefits of RTGS.

Two benefits of RTGS are:

  • High value transactions
  • 24×7 availability with minimal downtime

Q7. Can you schedule a transaction in advance using RTGS?

Yes, we can schedule a transaction in advance using RTGS.

Q8. Who is the central controlling authority of RTGS?

RBI or the Reserve Bank of India acts as the central controlling authority of the RTGS.

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