Understanding the meaning and features of RTGS funds transfer service.
The modern era has allowed us to enjoy newer, more convenient methods of conducting payments and settlements. However, with so many new methods of transferring funds, it can be confusing to pick one that meets your needs. This article focuses on one such payment method that has become incredibly popular in India – RTGS. Continue reading to know more.
RTGS full form is Real-Time Gross Settlement. This fund transfer facility was first introduced by the Reserve Bank of India (RBI) in 2004. It is a system that allows continuous real-time transfer of funds. The word ‘real-time’ highlights the nature of the transfer wherein the instructions are processed at the time they are received as opposed to after a delay or waiting period. Subsequently, the term ‘gross settlement’ means that the instructions for the transfer of funds are handled on an instruction-by-instruction basis. This transfer method is generally designed for high-value transactions, and you can use it for online and offline transactions.
When it comes to high-value transactions, RTGS offers several advantages to ensure quick and secure transfer of funds. Here are some key benefits of RTGS payment option:
In RTGS banking, funds move from one account to another in real time. The RTGS process works like this:
Example:
At 11:00 a.m., you send INR 5,00,000 from Bank A in Mumbai to Bank B in Delhi. The beneficiary receives the funds in their account in a few hours.
Before using RTGS for a fund transfer, it’s important to know the applicable RTGS limits, the operating schedule, and any fees and charges that may apply.
DBS Bank offers zero charges on RTGS, NEFT and IMPS transfers with its high-interest rate savings account, whether you transfer funds online or at a branch.
Real-Time Gross Settlement (RTGS) allows quick and secure transfer of large-value funds. Depending on your preference, you can complete the transaction online or at your bank branch.
Internet banking is one of the most convenient ways to carry out an RTGS transfer. Follow these simple steps to transfer funds:
Step 1: Login to you Internet Banking Platform.
Step 2: Select ‘Fund Transfer’ option in the main menu.
Step 3: Choose ‘RTGS Transfer’
Step 4: If it’s a new beneficiary, choose ‘Add New Beneficiary’ option and enter the recipient’s account details.
Note: Beneficiary activation can take 24 to 48 hours, depending on the bank.
Step 5: Enter the transfer amount (minimum 2 lakhs) and choose the account to send money to.
RTGS payment can also be initiated through your bank’s mobile app.
Step 1: On your bank's mobile app go to ‘Transfer’ or ‘Send Money’ option and select RTGS payment.
Step 2: Select from existing beneficiaries or add new one by entering receiver’s bank details.
Step 3: Enter the transfer amount and select the source account.
Step 4: Review all details carefully and initiate the transfer.
DBS Bank Savings Account holders can easily initiate RTGS transfer through DBS Digibank app with the ability to track and schedule payments for up to 3 days in advance.
For those who prefer in-person banking, RTGS transfers can also be initiated directly at your home branch as per the following process:
Step 1: Carry an ID proof and account related documents.
Step 2: Make a request for RTGS transfer, you will be provided an RTGS form.
Step 3: Complete the RTGS form and submit the required documents.
Step 4: After validating all the details, you will be provided an acknowledgement receipt with UTR number for future reference.
To ensure a successful RTGS transfer, you’ll need to provide accurate details of the beneficiary, transaction, and sender. Below are the key requirements.
When making an RTGS payment it’s important to consider a few aspects to ensure that the transfer of funds is done correctly:
Now that we have covered the details about RTGS payment, it’s also important to know what is the difference between NEFT and RTGS payments, so that you can choose the right option for transferring money, refer to this table below to understand their key differences:
Aspects |
NEFT |
RTGS |
Payment Processing |
Payment is processed in batches |
Payments are done in real-time basis |
Amount Limits |
Up to INR 2 lakhs |
INR 2 lakhs and above (no RTGS maximum limit) |
Settlement Time |
Within hours |
Instant |
Operating Hours |
24 x7 on all days throughout the year |
24 x7 on all days throughout the year |
Cash Remittance for funds transfer |
A non-account holder can transfer funds through NEFT by remitting amounts up to INR 50,000 |
Funds can only be transferred between accounts. |
RTGS in banking enables quick and secure transfer of high-value funds. With features like real-time settlement, beneficiary name validation, and low charges, it remains a reliable option for large transactions. By opening a bank account online with DBS Bank, you can access RTGS benefits such as seamless payments through the DBS digibank app and zero charges on fund transfers.
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.