What Exactly Is An RTGS Payment?

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What Exactly Is An RTGS Payment?

Real-timefundsettlementonatransaction-by-transactionbasisismadepossible throughRTGS.Thedigitizationoffinancialserviceshasmademoneytransfersquick andeasy.RTGSisonesuchtechniqueofmoneytransfer.Theterm"real-timegross settlement"(RTGS)refers.WhenyougivetheinstructionsviatheRTGSsystem, moneyisimmediatelytransferredfromyouraccounttothebeneficiary'saccount.

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What exactly is RTGS?

TheRBIdefinesRTGSas"asystemthatprovidescontinuousandreal-time settlementoffundsonatransaction-by-transactionbasis,withoutnetting."Realtimesettlementoffundsreferstotheinstantaneousmovementofmoniesfromthe sourcetotherecipientafteraninstructionisgiven.Inthistransaction,thereisno waitingperiod.Toputitsimply,RTGStransactionsareutilisedforfundtransfers thatneedtobeclearedrightaway.

BecauseRTGSwasdesignedforhigh-valuefundtransfers,manytransactionsare notclubbedtogetherandfundtransferscanbemadeonatransaction-bytransactionbasis.TheReserveBankofIndia(RBI)overseesandmanagestheRTGS systeminIndia.RTGStransfersareirrevocable&finalbecausetheyarerecordedin theRBI'sbooks.

RTGS advantages

 Secureandsafemoneytransfers.

 Noupperrestrictionontransfersofmoney(eachaccountusermaysettheir ownfunds-transfercap).

 Accessibleeveryday,allday.

 Fundsaretransferredinstantly.

 Nophysicalvisitorpaperisrequired.

Processing cost for RTGS

ProcessingfeesforincomingRTGStransactionshavebeenwaivedasofJuly1,2019. However,theRTGSfeesformoneytransmittedabroadareasfollows:

 2to5lakhrupees:upto24.50rupees

 greaterthanRs5lakh:uptoRs49.50

Information needed for RTGS

 Amount

 Nameofbeneficiary

 Sendertoreceiverinformation,ifany.

 Sourceaccountnumber

 Nameofthebeneficiarybank,branchandIFSCcode

The length of an RTGS transfer

IfthemoneywastransferredthroughRTGS,ittakesover30secondsforittoarrive onthebeneficiary'saccount.Intheeventofafailure,themoneyisimmediately returnedtothesource.Theconsumerisentitledtocompensationatthecurrent reporateplus2%intheeventthatthereisanyrefunddelay.

RTGS transfer requirements

TheRTGSfacilitymustbeactivatedonboththesendingbankbranchandthe receivingbankbranchforanRTGStransfertobesuccessful.Over1,65,000bank branchesinIndiacurrentlysupportRTGS,accordingtodatafromtheRBI.The beneficiary'sname,accountnumber,accounttype,bankbranchname,andIFSC mustallbeknowntothesender.

Data required for RTGS payment

 Amountthatmustbesent

 Theaccountnumberthatwillbeusedtodebitfunds

 Bank'snameandlocationinthebeneficiary

 Thereceivingbranch'sIFSCcode

 Thebeneficiary'sname

 Identifierforthebeneficiary'saccount

 Informationonthesenderandrecipient,ifany

 Legalentityidentifiersforthesenderandrecipient(fortransactionsthat qualify)

How may an RTGS transaction be started?

BothonlineandofflinemodesareavailableforstartinganRTGStransfer.Youmust issuetheinstructionsatyourbankbranchinordertouseofflinemode.Youcan utiliseinternetbankingormobilebankingservicestodothisonline.

Taking precautions before an RTGS transfer

 RTGStransactionsarecarriedoutonlyusingthebeneficiary'saccount number.Ensurethatyouprovidethecorrectaccountnumber.

 Post-datedtransactionsarenotacceptedbytheRTGSsystem.

How are RTGS transfers tracked?

CustomerslackanymeansoftrackinganRTGStransaction.Toletthereceivingbank knowthatthefundshavebeencreditedtothebeneficiaryaccount,thebeneficiary bankinsteadnotifiesthereceivingbankviaRBI.Inordertoobtainthisinformation, thesendercancontacthisbank.

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