RTGS
What is RTGS System?
The 'RTGS' stands for Real Time Gross Settlement, which can be defined as the continuous
(real-time) settlement of funds transfers individually on an order by order basis
(without netting). 'Real Time' means the processing of instructions at the time
they are received rather than at some later time; 'Gross Settlement' means the settlement
of funds transfer instructions occurs individually (on an instruction by instruction
basis).
How 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. For example, currently, NEFT operates in hourly batches. [There
are twelve settlements from 8 am to 7 pm on week days and six settlements from 8
am to 1 pm on Saturdays.] 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.
Is there any minimum / maximum amount stipulation for RTGS transactions?
The RTGS system is primarily meant for large value transactions. The minimum amount
to be remitted through RTGS is ` 2 lakh. There is no upper ceiling for RTGS transactions.
What about Processing Charges / Service Charges for RTGS transactions?
With a view to rationalize the service charges levied by banks for offering funds
transfer through RTGS system, a broad framework has been mandated as under:
a) Inward transactions – Free, no charge to be levied.
b) Outward transactions –
Transaction Charges
rtgs
Amounts above Rs 2 lakh and upto Rs 5 lakh
FREE
FREE
Amounts above Rs 5 lakh
What you need to Submit? (Remitting customer)
- Amount to be remitted.
- His/her account number which is to be debited.
- Name of the beneficiary bank.
- Name of the beneficiary customer.
- IFSC of receiving branch.
- Account number of the beneficiary customer.
IFSC CODE OF OUR BANK: HDFC0CJALOR