Everything About RTGS (Real-Time Gross Settlement)

Created on 31 Oct 2020

Wraps up in 4 Min

Read by 5.4k people

Updated on 14 Sep 2023

What is RTGS?

Fund transfer is not something that is just curbed to the business sector; it has become a necessity everywhere. Nowadays, everyone knows how to transfer funds online, easily from anywhere to everywhere.

When you wish to transfer funds within the country, you have multiple options. But when the amount of this transfer is massive, the options get limited. And among these limited options, there is one called RTGS.

The system is quite well known, but the knowledge regarding the same isn't. This is the reason why some RTGS transactions are not successful. Well, let us just have a deeper dive into this system and understand how it works.

What is RTGS?

Real-Time Gross Settlement (RTGS), is one more option that comes into the picture for online money transfer with the bank account. It is called real-time gross settlement because the transfer happens in real-time and the settlement is not done in batches but on a one by one basis. Currently, the RTGS enabled bank branches in India are up to 1,40,000.

Like other options, RTGS is also a very secure option. They ensure a safer transfer of funds from one bank account to another. But the one problem that comes under the RTGS funds transfer is that it only settles during the banking hours. So if there is a bank holiday or after working hours, your transaction will have to wait unless and until the banks open back up.

Another different thing about the RTGS system is that the charges are not set by the Reserve Bank of India. Here, banks are free to decide their own charges for their services.

How is an RTGS transfer done?

Having a beneficiary is a must if you want to avail the services of the RTGS. Let us look at the process of adding a beneficiary to your account.

Step 1- Enter the login id and password and login to your bank's net banking account.

Step 2- Click on the fund's transfer tab.

Step 3- Now, click on the option "Add a beneficiary", and then click on "select a beneficiary type". Lastly, select "Transfer to another bank".

Step 4- Now you are required to write the details of the beneficiary. This includes name, bank name, IFSC code, and account number.

Step 5- Then, select "Add" and confirm.

Step 6- After this, you will receive the confirmation message.

Now you will have a beneficiary. For transferring funds via RTGS, the following steps will be required:

Step 1- After logging into your Net banking account, go to the fund's transfer tab.

Step 2- Select the RTGS option and then select the beneficiary/payee to whom you wish to send the funds.

Step 3- Add the amount of money that is to be transferred.

Step 4- Before submitting the request, review the documents. 

The funds will be credited to the beneficiary within 30 minutes.

Why should one use RTGS?

In India, RTGS is a very famous system of transferring funds. It is used all over the country as it comes with a couple of benefits. These benefits are:

  • Speed: As the name suggests, the transactions under RTGS are done in real-time. Therefore there is hardly any scope of delay.
  • Wide Boundaries: Within the country, there are no locational barriers for the use of RTGS.
  • Safe and Secure: As a huge amount of funds are associated with RTGS, it is controlled by the RBI. Hence, it is considered very safe to use.
  • Convenient: RTGS is very convenient as it could be used as per your needs. You can make a payment using RTGS either from your home or office or from anywhere you're at.

What is the limit for RTGS transactions?

The minimum amount that can be transferred through RTGS is Rs. 2,00,000.

And talking of the maximum limit or the upper limit, there is no such upper limit for an RTGS transfer. However, some banks do have a limit through Net Banking.

What are the timings for RTGS?

The timings of RTGS is quite different from that of its counterpart NEFT. You can avail the services of RTGS from Monday to Saturday, except the 2nd and 4th Saturdays and bank holidays. The timings are from 8:00 AM to 4:30 PM.

What are the service charges under RTGS?


Service Charge

Inward transactions (within the bank)

Free, no charge to be levied

₹2 lakh to ₹5 lakh

₹30 per transaction

Above 5 lakhs

₹55 per transaction

What is the difference between NEFT and RTGS?

NEFT and RTGS are both the mediums through which can transfer funds from one bank account to another. NEFT or National Electronic Funds Transfer is an electronic transfer from one bank to another. The RTGS steps in when the transaction is required to be completed within a very short span of time or in real-time.

Want to know more about the NEFT services? Click here.

Heavy amounts of funds can be transferred through RTGS services. However, the major difference between the two is that RTGS is based on a gross settlement that means transactions are executed on an individual basis, whereas NEFT is carried out in batches.





Transactions are carried out in batches.

Transactions are carried out in individual batches.

Transaction Timings

Settled on an hourly basis during bank working hours.

Processed on a real-time basis.

Transaction Amount Limit

No minimum limit.

No maximum limit.


Meant for low to medium level transactions.

Meant for high-value transactions( more than ₹2 lakhs).

Final Thought

Either you are a business enthusiast or someone in the service sector, the knowledge of finance and transfer of funds is a must for empowering yourselves in the financial market. As mentioned earlier, this type of skill comes in as a necessity if you want to prevent yourself from any kind of transactional fraud.

Whether you are purchasing land or property in some other state or helping out a friend or relative financially, you could not do it if you don't have enough command over an integral part of finance that is RTGS. However, if you have read the full article, then congrats, you have climbed another step on the ladder of the banking and finance sector.

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Shristi Jain

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Shristi is the Yuvraj Singh of the Finology team. There is absolutely nothing that she cannot do. From beating the bests in table tennis to starting random Twitter spaces for product teams, she has got everyone's back! While she is a great mother to Finology Ticker, she also likes to write sometimes. As a side job, she likes to roast people. 

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