RTGS refers to Real Time Gross Settlement. RTGS allows the customers to transfer funds on gross basis and in real time, from one bank account to another. The transaction made is cleared instantly and the customers are not put to waiting. This payment system is maintained by the RBI and the transactions are made electronically.
Features of RTGS Transfer
The customer can transfer huge amount of money through RTGS system and the amount transferred, is deducted instantly from the one account and is transferred to the other account. The minimum amount that can be transferred through RTGS system is Rs. 2 Lakhs. There is no upper limit of the amount of money that one can transact through this system.
Before transferring funds through Real Time Gross Settlement system, one needs to be registered by providing account information to the bank. One can register the beneficiary through his/her online banking portal. The required details while fund transfer are, IFSC code of the bank, account number of the customer, bank address of the receiver and beneficiary’s name.
If the transfer is successful, the Reserve Bank of India notifies the receiver bank and the receiver bank can further notify the customers if it wants.
Recommended Read (Reserve Bank of India Website Links):