The full form of RTGS is: REAL-TIME GROSS SETTLEMENT
What is RTGS?
Real-Time Gross Transfer is a method of fund transfer introduced in 2005 where the money can be sent to the receiver instantly or in real-time. There’s a minimum limit of 2 lakhs to transfer the money and there is no upper limit.
What are the benefits of RTGS?
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The system is regulated by RBI and hence highly reliable, safe and secure
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The transaction occurs instantly and is used for large fund transfer
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Funds can be transferred online
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No geographical limitation
What is the difference between NEFT and RTGS transactions?
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There’s a minimum limit of 2 lakhs for RTGS which is not the case in NEFT.
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In RTGS the fund transfer occurs in real-time whereas fund transfer in NEFT takes time and is settled in hourly batches.
Also Read: What is the Financial Decision Support System (DSS)?
How can I transfer money to a person using RTGS?
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Activate your internet banking facility by contacting your bank and then log in to web portals by the User ID and Password provided to you
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Go to your profile->beneficiary->inter-bank payment->RTGS
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Add a beneficiary and fill the required fields
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Accept the terms and condition and then click confirm
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To authorize beneficiary to submit the password sent on your mobile number
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After the beneficiary is activated (will take about 30 mins or more) in the Payments/Transfers tab click the Inter-Bank Transfer link.
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Click transaction-type as RTGS, add the beneficiary’s account from the list of accounts displayed
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Enter the amount (min 2 lakhs) and then accept the terms and conditions followed by clicking confirm.
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Your fund will be transferred instantly.