Real Time Gross Settlement, abbreviated as RTGS, is a fund transfer method usually opted for when the amount to be transferred is very high and the transfer is required to be completed within the same day. RTGS is predominantly used for high-value transactions. This is mainly because the minimum amount that can be transferred via this mode is Rs 2 lakh.

Consumers must have the following information to successfully make an RTGS transaction:

  • The amount must be transferred in rupees
  • Name of the beneficiary or payee as stated in the bank account
  • IFSC code of the payee/beneficiary
  • Account number of the payee/beneficiary
  • Name of beneficiary’s bank and bank branch

Features of RTGS

Before making an RTGS transaction, you must be aware of some of its features so that you can make informed decisions.

  1. Real-time online fund transfer – The “RT” in RTGS stands for ‘real-time’. This means that it the most reliable fund transfer method when the transfer must be made immediately, or on the same day. In other words, the transactions take place without any delays or long processing periods
  2. Used for high-value transactions – The most important feature of the RTGS fund transfer method is that it is used for high-value transactions. The minimum amount that can be transferred using this method is Rs 2 Lakhs. This method is the most reliable and safest choice among consumers who must make such transactions
  3. Safe and secure, with RBI’s backing – This payment method is preferred for high-value transactions due to multiple reasons – such as quick service and minimal transaction costs. However, the feature that consumers find the most alluring is that it is one of the safest methods of fund transfer available today. What makes this method highly secure and reliable is that it is backed by India’s Central Bank, i.e. the Reserve Bank of India (RBI). This ensures that it is 100% legal and the server that takes care of these transfers is strong and safe from even the most advanced hacking technologies
  4. Immediate clearing – RTGS is a quick settlement method and immediately clears the payment from the consumer’s end, taking up to 2 hours to reflect at the beneficiary’s end. The payment is cleared immediately and is irrevocable, making it completely settled as soon as the consumer completes the transaction on his end
  5. Funds credited on a gross and one-on-one basis – This is an important feature of RTGS. The funds in this method of fund transfer are credited on a one-on-one basis, which means that the fund transfer takes place only between the two parties involved, i.e. the consumer (giver) and the beneficiary. No third party is involved and the payment, when released by the consumer, reaches directly to the beneficiary on a ‘one-on-one’ basis without bundling or netting with any other transaction.
  6. RTGS operates 24×7“ Governed by RBI, the fund transfer method will be available 24×7 on all days from December 2020 onwards.

Benefits of RTGS

RTGS offers many advantages over any other fund transfer method such as:

  • It is a safe and secure system for funds transfer

  • These transactions have no amount cap

  • The system is available on all days on a 24x7x365 basis. There is a real-time transfer of funds to the beneficiary account

  • There is no requirement for a physical cheque or a demand draft for the remitter

  • The beneficiary is not required to visit a bank branch for depositing the paper instruments

  • The beneficiary need not be apprehensive about loss/theft of physical instruments or the likelihood of fraudulent encashment

  • The remitter can initiate the remittances from his / her home/place of work using internet banking if his / her bank offers such a service

  • The transaction charges have been capped by RBI

  • The transaction has legal backing

What are the RTGS transaction fees that the sender must bear?

None! As a means to promote digital transactions, RBI has scrapped transaction fees for all RTGS transactions, irrespective of your bank.


RTGS is one of the most reliable fund transfer methods available today, with most people choosing it for its real-time fund transfers without any long waiting periods or delays. The payment method is often compared to NEFT, however, RTGS is generally preferred whenever it comes to making high-value transactions.


Saurin heads Content at Razorpay. He's a fintech enthusiast who enjoys long walks in the Bangalore weather. He says he's a "cool dad" (those are his words, his son has refused to comment). He writes primarily on personal and business finance, and a little bit on marketing.

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