RTGS Fund Transfer System in India - Full Form, Limits, Timings & Charges

The Real-Time Gross Settlement (RTGS) system is a pivotal mechanism for high-value transactions in India, facilitating immediate settlement of funds. This post sheds light on the crucial aspects of RTGS fund transfer in India, including its full form, limits, timings and charges.

RTGS Full Form

RTGS stands for Real-Time Gross Settlement, indicating its capability to settle transactions on an individual basis in real-time, as opposed to batch processing systems like NEFT.

RTGS Fund Transfer in India : Limits

The minimum amount that can be remitted through RTGS is ₹2,00,000, with no upper or maximum ceiling, making it primarily meant for large-value transactions.

RTGS Timings

Initially, RTGS transactions were permitted between 7:00 a.m. and 6:00 p.m. on all working days. However, as of December 2020, the Reserve Bank of India extended the RTGS timings to 24x7, allowing transactions to be initiated at any time of the day, throughout the year.

RTGS Charges

The charges for RTGS transactions are borne by the sender for outward transactions. The charges are as follows :

For transfers between ₹2 Lakh – ₹5 Lakh : ₹24.50 + taxes
For transfers of ₹5 Lakh and above : ₹49.50 + taxes.

RTGS Charges in SBI

State Bank of India (SBI) adheres to the standard RTGS charges for transactions initiated at the branch. However, online RTGS transactions are free of charge in SBI.

The RTGS system in India stands as a robust mechanism for immediate, high-value transactions, offering real-time settlement without the constraints of upper limits. With the RBI extending its operational hours to 24x7, it further enhances convenience for users. While charges are applicable for outward transactions, digital-savvy users can benefit from free online RTGS services through institutions like SBI. When compared to other systems like NEFT, RTGS certainly holds its ground for large-sum transfers, ensuring efficiency and reliability for its users.