What is RTGS Full Form
RTGS full form is Real Time Gross Settlement. It refers to a money transfer system that enables the immediate transfer of money with security. RTGS means transactions are Handel and settlement individually.
This Process organizes by the country’s central bank, so a large amount of money can transfer through it and RTGS is a continuous funds transfer by order basis.

It not only use for a money transfer but also uses for securities from one bank to another on a real-time gross settlement. To transfer money in between two accounts it takes a minimum of 2 hours.
RTGS is not an electronic payment system it is a physical money transfer system. It debits the amount of money from bank P’s and credits this amount to the destination bank.
RTGS launched in 1970 and this system was resembling a real-time gross settlement by the U.S Fedwire system and this system was an evaluation of a previous telegraph-based system. This system used to transfer funds electronically between the U.S Federal Reserve Bank.
It currently runs by the Bank of England and the Brits system called CHAPS(Clearing House Automated Payment System) and also this system use in other Eurozone country and it called as TARGET2(Trans-Europian Automated Real-time Gross Settlement Express Transfer System) and other developing countries also introduced in RTGS.
How does It work?
RTGS required some documents such as the Amount of money to transfer, the Name of the recipient, the Name of the payee and recipient bank, Bank IFCS code, and the Payee Bank account Number.
This method is one of the safe and famous methods for funds transfer in India because of this method operated by an Indian reserve bank.
This method work across India if you want to send money to your friend, landlord, family, and anyone so you can use RTGS.
We know that India has multiple payment systems for funds transfer such as Net settlement and gross settlement. For gross settlement, India has Real-time Gross Settlement called (RTGS).
We have taken benefits of the high-value transaction through RTGS(Real-time Gross Settlement) because RBI (Reserve Bank Of India)do compulsory for all Banks across India.
We can not decide the fees of RTGS because it varies from bank to bank. In this case, core banking enabled and his branches assigned an IFCS(Indian Finacial Code System) for RTGS propose because this code provides an identity.
RTGS Charges
It has a minimum value of the transaction is Rs-2,00,000/- and a customer can access RTGS facility between 9.00 AM to 4.30 PM (Inter-Bank up to 6.30 PM) on working days and 9.00 Am to 2.00 PM(inter Bank up to 3.00 PM) on Saturday and the timeline depending on the Bank branch.
The service of RTGS is for inward transition is no charge but for outward transitions of 2laks to 5laks 25 time transition is applicable and charges are (Rs-1/- to Rs-5/-) and plus GST.
If transitions limit is 5laks above then 50/-per transaction is applicable and charges (Rs-1/- to Rs-5/) plus GST and total transaction exceed 55 times.
In IDL(Intraday liquidity) transitions the charge will be Rs-25/- per transaction by the bank on RTGS. if IDL is not paid back at the end of the day in this case the apex bank will impose severe penalties.
The RTGS services for transitions are available from 7.00 AM to 6.30 PM from Monday to Saturday for a customer this rule started on 26 August 2019.
Read Also –