What is RTGS in Banking Terms?
RTGS stands for Real-Time Gross Settlement, a payment system that facilitates the instant transfer of funds. When you make a payment from your bank account using RTGS, the money is immediately transferred electronically to the beneficiary's account. The term "Gross Settlement" indicates that transactions are processed individually rather than in batches. This mode of payment can also be used for debit and credit card transactions.
Features and Benefits of RTGS
- The RTGS payment system allows one to transfer funds electronically from one bank account to another
- It facilitates the real-time transfer of funds online
- It is a safe and secure means of sending and receiving money
- RTGS is reliable as it is maintained by the Reserve Bank of India (RBI)
- It is used for high-value transactions. The RTGS minimum limit is ₹2 lakh
- Fees and charges depend on the RTGS transaction amount
- RTGS timings differ from one bank to another
- RTGS can be done online via net banking or by visiting your bank’s branch
How to Do an RTGS Transaction
RTGS transactions can be conducted both online and offline. Depending on your preferred method, follow these steps:
RTGS Through Net Banking
- Registration: First, register for RTGS services through your net banking portal.
- Enter Details: Log in to your account and enter the RTGS details for the beneficiary, including their name, account number, and IFSC code.
- Amount: Specify the amount you wish to transfer.
- Authenticate Payment: Complete the transaction by authenticating the payment.
RTGS Through Bank
- If you do not have access to net banking, you can still perform an RTGS transaction by visiting your bank's branch. Provide the necessary details to the bank staff, who will assist you in completing the transfer.
What Details Are Required for RTGS?
- Amount to be Transferred: The total sum you wish to send.
- Beneficiary Account Holder Name: The name of the person or entity receiving the funds.
- Beneficiary Account Number: The account number where the money will be credited.
- Beneficiary Bank IFSC Code (IFSC): The Indian Financial System Code of the beneficiary's bank branch.
- Beneficiary Bank Name: The name of the bank where the beneficiary holds their account.
- Beneficiary Bank Branch: The specific branch of the beneficiary's bank.
| Sr.No. | Particular | Charges (Rs.) |
|---|---|---|
| 1 | 2 Lakh to 5 Lakh | 25/- |
| 2 | Above 5 Lakh | 50/- |
How to Use
- Log In: Access your account through the banking app.
- Select Transfer Option: Choose either RTGS or NEFT from the menu.
- Enter Details: Fill in the recipient’s bank account details, including name, account number, and IFSC code.
- Specify Amount: Enter the amount you wish to transfer.
- Review and Confirm: Double-check the details before confirming the transaction.
- Complete Transfer: Submit your request and receive a confirmation.
What is NEFT?
NEFT stands for National Electronic Funds Transfer, a secure banking service that allows electronic transfers of funds from one bank account to another. It is accessible from anywhere and can be used for debit and credit card payments.
Features and Benefits of NEFT
- Electronic Transfers: Move funds easily between accounts.
- Flexibility: Transfer to individuals or companies if their bank supports NEFT.
- Convenient: Initiate transfers online via net banking, mobile banking, or ATMs.
- Paperless: No physical documentation required.
- Secure: Multi-step verification ensures safety.
- Reliable: Managed by the Reserve Bank of India (RBI), with transactions processed in batches.
Required Details for NEFT
To complete an NEFT transaction, provide:
- Amount to be Transferred
- Beneficiary Account Holder Name
- Beneficiary Account Number
- Beneficiary Bank IFSC Code (IFSC)
- Beneficiary Bank Name
- Beneficiary Bank Branch
| Sr.No. | Particular | Charges (Rs.) |
|---|---|---|
| 1 | Up to Rs.10000 | 5/- |
| 2 | From 10000 to 1 Lakh | 10/- |
| 3 | Above 1 Lakh to 2 Lakh | 15/- |
| 4 | Above 2 Lakh | 25/- |
Frequently Asked Questions
What is the Amount limit for RTGS/ NEFT transactions under Mobile Banking?
When should I use RTGS or NEFT?
- RTGS: For transferring ₹2, 00,000 or more. Ideal for high-value, time-sensitive transactions.
- NEFT: For transferring any amount (no minimum limit). Suitable for small or medium-value transactions.
Are there specific timings for RTGS and NEFT?
- RTGS: Available from 7:00 AM to 6:00 PM on working days, as per RBI guidelines.
- NEFT: Operates 24/7, including weekends and public holidays. Transactions are processed in half-hourly batches.
When does the beneficiary get the credit for a RTGS payment?
When does the beneficiary get the credit for a NEFT payment?
What happens if an RTGS or NEFT transaction is not credited to the beneficiary’s account?
-
For RTGS Transactions
If the beneficiary’s bank cannot credit the account for any reason, they will return the funds to the remitting bank within one hour of receiving the payment at the Payment Interface (PI) or before the end of the RTGS business day, whichever is earlier. Once People's Co-op Bank receives the funds, the remitter's account will be credited promptly.
-
For NEFT Transactions
If the NEFT transaction fails to credit the beneficiary's account, the beneficiary’s bank is required to return the funds to the remitting bank within two hours (B+2) of the batch in which the transaction was processed. Once People's Co-op Bank receives the returned funds, they will ensure the remitter's account is credited without delay.
Are there charges for RTGS and NEFT transactions?
Charge for NEFT
| Sr.No. | Particular | Charges (Rs.) |
|---|---|---|
| 1 | Up to Rs.10000 | 5/- |
| 2 | From 10000 to 1 Lakh | 10/- |
| 3 | Above 1 Lakh to 2 Lakh | 15/- |
| 4 | Above 2 Lakh | 25/- |
Charge for RTGS
| Sr.No. | Particular | Charges (Rs.) |
|---|---|---|
| 1 | 2 Lakh to 5 Lakh | 25/- |
| 2 | Above 5 Lakh | 50/- |