RTGS: How Much Do You Know About It?

RTGS Is Used To Transfer Money Through Online.

It stands for Real Time Gross Settlement which is real-time settlement of fund-transfers, ‘Real Time’ means the processing of instructions at the time they received; ‘Gross Settlement’ means that the settlement of funds transfer instructions occurs individually.

How to do RTGS?

1. Internet Banking
2. Mobile Banking

What is IFSC code?

• IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the online money transfer system.
• It’s a 11-digit code with the first 4 alpha characters representing the bank, and the last 6 characters representing the branch. The 5th character is 0 (zero).
• IFSC is used to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.

What are the benefits?

• It is a safe and secure method for funds transfer.
• Transactions / transfers have no amount cap or limit.
• The system is available on all working days of Banks.
• There is real time momey transfer to the beneficiary account.
• The remitter need not use a physical cheque or DD.
• The beneficiary need not visit a bank for depositing the paper instruments.
• Remitter can initiate the transaction from his / her home / place of work using internet banking, if his / her bank offers such service.
• The transaction charges have been levied by RBI.

Real Time Gross Settlement

Read Also: What Is NEFT?