Question

What is the full form of RTGS in Banking sector?

Answer 1

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?

• The system is regulated by RBI and hence highly reliable, safe and secure

• The transaction occurs instantly and is used for large fund transfer

• Funds can be transferred online

• No geographical limitation 

What is the difference between NEFT and RTGS transactions?

1. There’s a minimum limit of 2 lakhs for RTGS which is not the case in NEFT.

2. 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?

1. 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

2. Go to your profile->beneficiary->inter-bank payment->RTGS

3. Add a beneficiary and fill the required fields

4. Accept the terms and condition and then click confirm

5. To authorize beneficiary to submit the password sent on your mobile number

6. After the beneficiary is activated (will take about 30 mins or more) in the Payments/Transfers tab click the Inter-Bank Transfer link.

7. Click transaction-type as RTGS, add the beneficiary’s account from the list of accounts displayed

8. Enter the amount (min 2 lakhs) and then accept the terms and conditions followed by clicking confirm. 

9. Your fund will be transferred instantly.