RTGS: How Much Do You Know About It?

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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

  1. Which is better RTGS or NEFT?

    If you want to transfer money faster and minimum amount is above Rs. 2 Lakh then RTGS is better.

  2. Which is cheaper RTGS or NEFT ?

    After 2019, both Payment methods are free.

  3. Which is fast RTGS or NEFT?

    It is Faster than NEFT.

Read Also: What Is NEFT?

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