How to transfer funds via RTGS system

“RTGS” stands for Real Time Gross Settlement. The RTGS system facilitates e-transfer of funds from accounts in one bank to another on a “real time” and on “gross settlement” basis. The RTGS system is the fastest possible interbank money transfer facility available through secure banking channels in India. Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

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. Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank.

If the money cannot be credited for any reason, the receiving bank would have to return the money to the remitting bank within 2 hours. Once the money is received back by the remitting bank, the original debit entry in the customer's account is reversed.

The remitting customer has to furnish the following information to a bank for affecting a RTGS remittance: 
  1. Amount to be remitted 
  2. Remitting customer’s account number which is to be debited 
  3. Name of the beneficiary bank 
  4. Name of the beneficiary customer 
  5. Account number of the beneficiary customer 
  6. Sender to receiver information, if any 
  7. The IFSC Number of the receiving branch 

RTGS service window for customer's transactions is available from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 13.30 hours on Saturdays for settlement at the RBI end. However, the timings that the banks follow may vary depending on the customer timings of the bank branches.

RTGS services are enabled only in specific bank branches across the country. A list of such RTGS enabled branches can be obtained from the RBI website.

Once the funds are credited to the account of the beneficiary bank, the remitting customer gets a confirmation from his bank.