RTGS Full Form, Real Time Gross Settlement

RTGS Full Form, Real-Time Gross Settlement Work, And FAQs

RTGS Full Form:- So, RTGS is an acronym that stands for Real Time Gross Settlement. As the name defines, it is a continuous (real-time) settlement of money transfers from person to person on an order-by-order basis. RTGS transfers money or securities from one bank to another in real-time and on a holistic basis.

Also, RTGS systems are generally used for high-value money transactions that require immediate clearing. Countries’ central banks usually operate it. Electronic payment systems are not based on the physical exchange of money. It subtracts the amount from A’s bank account and adds it to the account.

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In Hindi:

RTGS एक संक्षिप्त रूप है जो रियल टाइम ग्रॉस सेटलमेंट के लिए है। जैसा कि नाम परिभाषित करता है, यह एक व्यक्ति से दूसरे व्यक्ति को आदेश-दर-आदेश के आधार पर धन हस्तांतरण का एक निरंतर (वास्तविक समय) निपटान है। आरटीजीएस वास्तविक समय में और समग्र आधार पर एक बैंक से दूसरे बैंक में धन या प्रतिभूतियों का हस्तांतरण करता है।

साथ ही, आरटीजीएस सिस्टम का इस्तेमाल आम तौर पर उच्च मूल्य के पैसे के लेन-देन के लिए किया जाता है जिसके लिए तत्काल समाशोधन की आवश्यकता होती है। देशों के केंद्रीय बैंक आमतौर पर इसका संचालन करते हैं। इलेक्ट्रॉनिक भुगतान प्रणाली पैसे के भौतिक आदान-प्रदान पर आधारित नहीं हैं। यह ए के बैंक खाते से राशि घटाता है और खाते में जोड़ता है।

RTGS Full Form
RTGS Full Form

Features and Benefits of RTGS

Here are some of the benefits of transferring money through RTGS and you can check them all below:

  • RTGS transactions happen continuously throughout the day.
  • The service is available 24 hours a day, 7 days a week, and you can transfer funds at any time.
  • Money transfer done through RTGS is safe and secure.
  • You will save a lot of time while doing RTGS.
  • No processing fee is charged on RTGS transactions.
  • There is no limit on the maximum amount you can transfer through RTGS.
  • You can also transfer money through RTGS using your respective bank’s net banking or mobile application.
  • Transaction charges are limited by the Reserve Bank of India.

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Fee for RTGS

Once you know the full form of RTGS, then you should also find out the charges involved while doing RTGS. The processing fee levied on RTGS transactions was waived by the Reserve Bank of India. But you have to pay a service charges to the bank and they are given below:-

  • If you are doing inward transactions through RTGS then you will not have to pay any extra charges.
  • If the money you are transferring through RTGS is between INR 2 Lakh to INR 5 Lakh, then you will have to pay a service charge of a maximum of INR 24.5.
  • If the money you are transferring is more than Rs 5 lakh, then you will have to pay a maximum fee of Rs 49.5.

Required details for RTGS

When you are transferring money through RTGS you will need the following details of the recipient’s account:

  • The amount you are willing to transfer.
  • Recipient’s account number.
  • Recipient’s bank branch.
  • IFSC number of the recipient’s bank branch
  • Recipient Name.
  • Recipient’s account number
  • Basic information of the sender.
RTGS Full Form
RTGS Full Form

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FAQs on RTGS Full Form

What is the difference between RTGS and NEFT?

While there is no minimum or maximum limit on the amount that can be transferred in NEFT, RTGS transactions can be done only if the amount to be transferred is equal to or more than Rs. 2 lakhs. Similarly, NEFT transactions take around 2 hours to be processed, while RTGS transactions are processed instantly.

Why RTGS is used in banks?

RTGS offers several advantages as compared to other modes of fund transfer: It is a safe and secure system for fund transfer. There is no amount limit for RTGS transactions/transfers. This system is available on a 24x7x365 basis on all days.

What is the RTGS limit per day?

The RTGS system is primarily meant for large-value transactions. So, the minimum amount that can be remitted through RTGS is ₹2 lakh per day. The maximum amount is ₹10 lakh per day.

What is RTGS payment?

introduction. Under RTGS, payments between banks are made in person in real-time from credit funds in the Exchange Settlement Account (ESA) of the paying bank with the Reserve Bank. RTGS payments are final and cannot be canceled or otherwise unsolicited by the paying bank.

Is RTGS transaction free?

RTGS Fees & Charges:

These transactions are processed in real-time and funds are settled individually and not in batches. While there is no charge applicable for receiving funds through RTGS fund transfer, you will have to pay a fee to initiate it.

Also Read:- NEFT Full Form…Read More

Which is cheaper RTGS or NEFT?

So if you want to transfer large amounts then real-time RTGS is better but for small amounts where there is not much need, NEFT is a better option. Generally, the cost of RTGS is higher than the NEFT transaction.

What is the minimum amount for RTGS?

RTGS Limits:

Also, the minimum amount for RTGS transactions is Rs 2 lakh. For online transactions, some banks have a maximum limit of around Rs 25 lakh; There is no upper limit for RTGS in India if the RTGS transaction is done through a bank branch. RBI has made RTGS transactions flexible.

What is an RTGS example?

So, the RTGS does not require an actual physical exchange of money. A central bank will often accommodate sending and receiving bank accounts in electronic form. 6 For example, sending Bank A’s balance will be decreased by $1 million, while receiving Bank B’s balance will be increased by $1 million.

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